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Asset Management finance awareness raised amongst SMEs

The United Trust Bank conducted the research. Almost two thirds (64 per cent) of brokers believe that SMEs have become more aware of the potential for using asset management finance. The flexibility of asset-based finance, in regards to payment structure, security or guarantees, is appealing for smaller businesses. Of those surveyed, 23 per cent indicated that of all the asset finance cases they’d placed in the previous 12 months, over half required some degree of flexibility.

Speed of Asset Management finance approvals

The speed at which money is available was also highlighted as a positive for SMEs. A quarter of brokers said with most asset finance loans money was made available within a week of application. In addition, 24 per cent indicated that funds were usually released within two weeks.

Businesses need to prepare before approaching lenders in order to show that the firm is creditworthy. Looking over the business’ credit report can flag up any potential issues beforehand, allowing them to be resolved. 

Surprisingly, the majority (89 per cent) of brokers claim that SMEs will continue to use asset management finance even if the high street banks start to increase their lending.

Martin Nixon, head of asset finance at United Trust Bank, said, “It is interesting to note than an overwhelming number of brokers believe that SMEs will continue to employ asset management finance as a means for raising working capital even if the high street banks make credit more available.

“Customers which have experienced the flexibility, speed and high levels of service provided by brokers assisted by specialist lenders like UTB, when they were perhaps turned down by their own bank, may not be easy to win back when the high street lenders eventually loosen their purse strings.”

SMEs make up the vast majority of UK businesses and as a result can drive the economy forward. Expanding can present a business with additional risks but if these are managed properly businesses can take advantage of opportunities available.

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