Almost three-quarters of commercial brokers said asset finance will drive business funding demand in 2026, according to an industry survey.
Brokers also anticipate significant interest and demand for business acquisition and expansion loans, according to one in four commercial brokers.
Meanwhile, areas such as invoice finance (22%) and property-related commercial finance (17%) are expected to be less popular, according to the survey by Asset Advantage.
Furthermore, nearly 60% of commercial brokers said they have seen an increase in client demand for funding to buy a business or complete a management buyout.
The findings follow recent data from the Finance & Leasing Association (FLA), which found that total asset finance new business in September was 11% higher than the same month the year prior. Meanwhile, the Office for National Statistics (ONS) reported that the value of domestic mergers and acquisitions in Q3 2025 was £5.3bn – nearly £2bn higher than the previous quarter.
Gary Thompson (pictured), sales director at Asset Advantage, said: “Commercial brokers are telling us that there is growing momentum among SMEs.
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“Rather than seeking short-term fixes with inappropriate cash flow loans, they are actively pursuing funding that helps them grow and asset finance is top of their list in the coming year. Alongside this, SMEs are looking to grow through expansion and are therefore prioritising funding for business acquisitions. This certainly mirrors our current business levels and expectations for the year ahead.”
Asset Advantage recently enhanced its business loans proposition with the addition of two new dedicated products to support brokers.
