Third of brokers report rise in asset finance

New research by Allica Bank shows that the market remains active and resilient, with brokers continuing to see meaningful demand across key sectors and reporting strong improvements in lending speed and efficiency.

Despite a more challenging economic backdrop, 29% of brokers saw an increase in asset finance applications in the second half of the year – up from 26% when Allica surveyed its brokers six months earlier. A further 26% reported no material change in application numbers, demonstrating demand remains steady.

45% of brokers reported a decrease in applications over the period. However, many attributed this to businesses delaying equipment upgrades amid wider economic uncertainty, saying they expect this pent-up demand to ease later this year. Brokers pointed to soft assets such as IT equipment as the most likely to benefit. At the same time, some vehicle and haulage segments may experience softer growth as firms continue to “sweat” their existing assets.

Established businesses across a wide range of sectors are continuing to invest, with construction, transport and logistics, and renewables reported to be where brokers are seeing the most demand. The renewables sector moved into the top three for the first time.

The research also asked brokers about the role of technology, with many responding that it has played a major role in improving the lending experience for them and their clients, as well as helping to unlock investment by automating and speeding up processes. More than two-thirds (69%) of brokers said digital underwriting, automation and artificial intelligence have improved the speed and efficiency of lending decisions, a notable increase compared with Allica’s survey six months earlier. Brokers reported that faster decisions and clearer processes are helping them serve clients more effectively and unlock investment more quickly.

Looking ahead, brokers are cautiously optimistic about the year to come. Nearly four in ten (39%) said they feel confident about growth in 2026, including 9% who said they are very confident. A further 38% reported feeling neutral, while 23% said they were concerned about growth prospects.

Brokers pointed to easing uncertainty as a key factor behind improving sentiment, citing expectations that interest rates will stabilise, policy direction will become clearer, and businesses will adjust to cost pressures such as increases to National Insurance.

Brandon Hall, Head of Broker Asset Finance Sales at Allica Bank, said “What this survey shows is a market that’s steadier than many might expect. Even with ongoing economic pressure, a large proportion of brokers are still seeing demand hold up, and in some cases grow – particularly in areas like renewables.

“For brokers, the message is that activity hasn’t disappeared, it’s just become more selective. Businesses are often taking longer to commit, sweating existing assets, and relying on brokers to help them invest at the right moment. That makes speed, clarity and certainty more important than ever.

“As uncertainty continues to ease and interest rates stabilise, confidence is starting to return. Brokers who can move quickly, supported by lenders that combine smart technology with real human decision-making, will be best placed to help their clients unlock that pent-up demand over the year ahead.”