Business mortgage

Trade finance brokers are positive about the future of business

Most (77%) of commercial financial intermediaries believe the number of loans they broker will increase, business loan provider Spotcap has found.

The research, conducted with support from NACFB and FIBA, also found that more than half of commercial financial intermediaries believe lending will increase dramatically.

Graham Toy, Managing Director of NACFB, said: The research aligns with our own view of the role of the commercial finance brokerage in supporting and advising commercial borrowers.

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“Brokers have a positive outlook in part because they remain instinctively nimble, many of them having overcome the unpredictability of a post-2008 world. “

Commercial financial intermediaries are divided on Brexit, one in four see it as a major challenge, while a fifth believe it will bring new business opportunities.

Real estate, professional services, construction and manufacturing are seen as key sectors for business growth

The number of documents required to process an application is seen as a barrier. This is closely followed by the generation of new business and understanding what the different lenders have to offer.

Adam Tyler, Executive Chairman of FIBA, the Financial Intermediary & Broker Association, added: “We benefit tremendously from such a wide range of lenders and knowing that SMEs are still unaware of this choice is very disappointing.

“My own research has revealed similar gaps and the more we can do collectively, the more small businesses can get the financing they need. “

Despite the good size of the UK SME lending market, there is still a £ 22 billion funding gap, with many companies struggling to secure capital for their needs, according to the Bank of England.

This research comes after recent statistics from the British Business Bank have highlighted the importance of commercial financial intermediaries, claiming that companies that receive external support when seeking financing are 25% more likely to become businesses in the future. high increase.

Niels Turfboer, Managing Director of Spotcap, commented: “Commercial financial intermediaries are an important part of the SME finance puzzle.

“The survey results show they have a lot of potential to help close the £ 22 billion funding gap.

“The more adaptable and open to change intermediaries – and lenders – are, the better they can compete and grow their businesses quickly. “