Brokers see renewables in top 3 sectors

Allica Bank, the challenger bank for established businesses, has published the findings from its latest survey of over 570 of its asset finance broker community. The results show a market that remains active and resilient, with brokers continuing to see meaningful demand across key sectors and reporting strong improvements in lending speed and efficiency.

Almost 30 percent (29pct) of brokers report rising asset finance applications, with a further 26pct seeing no change, showing steady demand despite wider caution. Construction, transport/logistics and renewables are the strongest sectors for applications, with renewables entering the top three for the first time.

29pct of brokers saw an increase in asset finance applications in the second half of the year – up from 26pct when Allica surveyed its brokers six months earlier. A further 26pct reported no material change in application numbers, demonstrating demand remains steady. 

45pct of brokers said they had seen a decrease in applications over the period. However, many attributed this to businesses delaying equipment upgrades amid wider economic uncertainty, saying they expect this pent up demand to ease later this year. Brokers pointed to soft assets such as IT equipment as the most likely to benefit, while some vehicle and haulage segments may experience softer growth as firms continue to “sweat” their existing assets.

Established businesses across a wide range of sectors are continuing to invest, with construction, transport and logistics, and renewables reported to be where brokers are seeing the most demand. The renewables sector moved into the top three for the first time.

Allica also asked its brokers about the role of technology, with many responding that it has played a major role in improving the lending experience for them and their clients, as well as helping to unlock investment by automating and speeding up processes. More than two-thirds (69pct) of brokers said digital underwriting, automation and artificial intelligence have improved the speed and efficiency of lending decisions.

Looking ahead, brokers are cautiously optimistic about the year to come. Nearly four in ten (39pct) said they feel confident about growth in 2026, including 9pct who said they are very confident. Brokers pointed to easing uncertainty as a key factor behind improving sentiment, citing expectations that interest rates will stabilise, policy direction will become clearer, and businesses will adjust to cost pressures such as increases to National Insurance.

Brandon Hall, Head of Broker Asset Finance Sales at Allica Bank, said, “For brokers, the message is that activity hasn’t disappeared, it’s just become more selective. Businesses are often taking longer to commit [and] relying on brokers to help them invest at the right moment. That makes speed, clarity and certainty more important than ever."

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