"The results of the survey show there’s still a strong and steady demand among businesses to invest to fuel growth or invest in commercial property."
- Charissa Chang, head of sales at Allica Bank
An increasing number of businesses are seeking finance to fund investment in their business, according to the latest survey of commercial mortgage brokers by Allica Bank.
Just under half (44%) of commercial mortgage brokers said they have seen an increase in demand for finance from their clients, with a third reporting at least a 10% increase in applications.
Half of those brokers that saw an increase in applications said the main reason is a greater number of businesses seeking finance so they can invest in growing their business. 43% said the rise is due to more businesses looking to own their own premises, and just over a third (36%) said it was business owners looking to invest in commercial property.
A third of the brokers polled said they saw no change in the volume of applications over the past six months. While just under a quarter (23%) of the brokers who responded have experienced a drop in demand, with rising interest rates and rising costs cited as the reason.
Charissa Chang, head of sales North & Midlands at Allica Bank, commented: "With interest rates remaining high and with operating margins under pressure, it’s a challenging time for SMEs across Britain. It’s highlighted just how key the expertise of a broker will be in 2024 as SMEs navigate the funding market.
“The market has found it tough to adjust to the new reality. Despite this, the results of the survey show there’s still a strong and steady demand among businesses to invest to fuel growth or invest in commercial property. Both banks and brokers alike have a crucial role to play in supporting this ambition.”
