Asset purchases are the biggest opportunity, say commercial brokers

After undertaking a survey of around 300 commercial brokers in March, the SME lender found that 45 per cent of brokers believe fund asset purchases will be the biggest opportunity for their clients this year.

This was followed by cash flow options (24 per cent) and engaging with more flexible facilities (20 per cent). Assisting with debt consolidation was chosen by just 11 per cent of brokers.

However, brokers said that the biggest challenge this year for clients would be accessing finance in challenging economic times (28 per cent), followed by managing cash flow.

Carissa Hurley, a finance broker at Quantum Business Finance, said that businesses are looking for flexibility in finance to handle whatever twists and turns they navigate this year.

“All businesses have their unique sets of challenges and opportunities, so increasingly we’re looking to get financial solutions in place that our clients can use down the track, giving them peace of mind that capital is there when they need it,” she said.

Noting the findings, Shift’s sales director Kristian McCausland said that solving problems for clients that go beyond arranging finance helps set brokers apart.

“Now, more than ever, taking a business-first approach to client relationships makes all the difference,” said McCausland.

“For instance, when we review an application for equipment, rather than assessing the asset we look at the strength of the business overall, to gauge the ways in which we can support them in the long-term.

“This is the approach we’re increasingly seeing brokers adopt by taking a comprehensive view of their clients’ businesses and building networks to become a trusted long-term partner.”

Noting the increasing focus on asset finance purchases, Shift has now tweaked its asset finance product to give borrowers an additional available amount so they can finance future purchases without needing to go through the application process again (determined on a case-by-case basis, depending on the financial position of the business).

McCausland said: “Brokers have told us that an asset solution which works now and down the track, rather than going through the process for a one-off purchase, makes their and their clients’ lives easier.

“There are multiple factors that come into the decision to provide an amount for future purchases. We’ll be able to view information about current asset finance facilities from banking data and financials that the broker supplies.

“We then work with the broker to establish how we can support the customer with an available amount for future purchases, which is part of our relationship-based approach.

“This gives the client a view into their available capital for future asset purchases using the same facility. Businesses can plan more accurately and have a greater idea of future funds available.”

[Related: The Nu-Age of asset finance broking]