An increasing number of businesses are seeking asset finance to drive business growth, according to the latest survey by Allica Bank, the digital relationship bank dedicated to serving established British SMEs.

Just under half (43%) of the asset finance brokers said they have seen an increase in demand from their clients, with just under a third of those reporting at least a 10% increase in applications.

Demand is principally driven by more businesses seeking finance to invest in new machinery (45%), while over a third of businesses (36%) are looking to refinance their existing assets.

A quarter (25%) of the brokers who responded said they have experienced a decrease in demand, with rising interest rates and rising costs cited as the reason.

Brandon Hall (pictured), Head of Asset Finance Sales at Allica Bank, says Allica is committed to supporting UK SMEs as they look to fuel their growth and expansion plans: "SMEs have had a tough few years, and 2024 looks to be no different with higher costs, inflation and interest rates still top-of-mind.

“However, it’s encouraging to see a strong and steady demand among businesses to invest in their growth by purchasing new plant and machinery. It’s possible that this is a sign that business owners have adapted to the new economic reality we find ourselves in. With interest rates unlikely to fall by any great margin any time soon, brokers will have a crucial role to play in helping businesses find affordable finance to buy or refinance these assets and kick on with their plans for growth.”