Asset Advantage reported that demand for business acquisition funding increased, based on its latest survey of commercial finance brokers.
Nearly 60% of brokers saw a rise in clients wanting finance to buy a business, with 47% seeing a slight increase and 12% reporting a significant increase.
Only 3% said demand had fallen, while 38% said it stayed the same.
Almost half of brokers (around 50%) said clients struggled to understand how to get finance for acquisitions.
Many did not know what information, documents or business plans were needed to complete deals, especially for smaller transactions.
Gary Thompson (pictured), sales director at Asset Advantage, said: “Reports of increasing demand for business acquisition funding certainly mirrors what we are seeing on the ground.
“Whether it’s management teams looking to seize new opportunities, or business owners looking to hand over the reins, business acquisition funding continues to be an important part of our business.
“Key to that is our ability to walk brokers and their clients through these more complex arrangements and provide 100% funding at the right levels to facilitate this type of transaction – particularly for smaller enterprises.”
Thompson added: “Our survey tells us that there is a knowledge gap among some clients when it comes to business acquisitions.
“It’s no secret that this can be more complex and not always commonplace for every broker.
“It is reliant on funders to use their experience and assist brokers in building their knowledge so they can confidently support clients.”
He said: “We prioritise using our team’s expertise and our Content Hub to support the market. It’s fantastic that this is not holding back brokers from proactively educating clients, nurturing transactions and, with the right funder, getting them over the line.”
