Commercial finance brokers are reporting a significant rise in client requests to support more complex projects, according to new findings published by Asset Advantage.

The research found that 29% of brokers have seen an increase in funding requests for soft or tricky assets, while just over a third have seen demand for projects which require a mix of asset finance and other more bespoke funding needs.

In the same survey, nearly 40% of commercial finance brokers said that funders only sometimes look beyond the deal to consider the full picture of the business.

Meanwhile, Asset Advantage also reported that a third of respondents said that funders don’t consider the full story behind complex deals.

“It’s certainly true that client demands are getting more complex, all while the lending policies of larger, mainstream lenders arguably becomes more restrictive,” credit and risk director at Asset Advantage, Philip Knight.

“We continue to see examples of ‘story’ deals where the credit risk is low, but some element of the deal falls foul of the more formulaic approach these lenders apply.

“While not always possible, particularly for larger funders, there is a need in the market to look beyond the headline figures to build a full picture of the deal and of the business.”

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