Exporters keep commercial finance brokers busy
- Half (53%) of commercial finance brokers are observing an increase in export-led companies seeking finance
- 60% of brokers attribute Brexit concerns to waning business loans applications
- Findings corroborate recent MarketInvoice Business Insights trends
27th June 2019, London: MarketInvoice, the business finance company, recently surveyed1 commercial finance brokers for their views on the current business climate. Commercial finance brokers are seeing an increased demand from UK businesses that are export-led, for finance needs. This demand could well increase in the coming 12 months according to findings from recent MarketInvoice Business Insights which surveyed UK business owners. In this, despite Brexit turmoil, over half (56%) aim to open offices abroad and start exporting.
Separately, on reports that applications for traditional business loans were in decline, almost two-thirds (60%) of commercial finance brokers cited Brexit uncertainty as the main reason for this. Simultaneously, the MarketInvoice Business Insights survey reported that only one in ten (10%) companies were turning to a traditional business loan to boost growth. Instead, their preferred option was invoice finance, with more than a quarter (26%) of business owners feeling this type of funding would help with their growth ambitions.
Tom Davenport, Head of Strategic Partnerships at MarketInvoice, commented: “Commercial finance brokers are reporting trends that we, too, have observed amongst UK business owners. It’s great to see businesses using the wide expertise of these brokers to find the best solution for them.
Trends suggest that brokers could be getting busier with more demand for funding options from export-driven companies. These are complex businesses who have several demands across their supply chain and will require finance solutions that meet the needs of various moving parts of the business. This is as much about helping them find the right cash flow or working capital solution as it is about supporting the long terms growth of the company”.
1 Research based on a survey of 108 commercial finance brokers on 19th June 2019. Survey conducted at NACFB’s Commercial Finance Expo.
2 Research based on a survey of 1,000 business owners of UK Ltd companies (who employ between 1 and 249 staff) between 31st May and 5th June 2019. Survey conducted by LM Research & Marketing Consultancy (Marketing Research Society approved partner and ESOMAR corporate member).