Here are the top three insights and observations from the Spotcap team.
1. Credit and risk appetite is changing
Credit conditions aren't what they used to be, but finance is still available.
The ongoing tightening of credit has escaped no one. Businesses of all sizes face a squeeze as traditional lenders slash risk-taking and rein in credit. This, of course, will affect lending standards as traditional as well as non-traditional lenders adjust. Add to this the recent challenges of P2P lenders and you have an outlook that points towards greater diligence when it comes to lending eligibility and criteria.
2. Businesses want funding flexibility and options
There are more funding providers and products available than ever.
The backdrop of changing credit conditions did not in any way affect the positive atmosphere at the show. The floor was buzzing while exhibitors and delegates networked and got deals done left, right and centre.
The intermediaries we spoke to were well aware that while credit conditions are changing, there are more funding providers and products available than ever. UK businesses want options and flexibility. The show was full of them — bridging, property, asset based, unsecured — with varying eligibility criteria, collateral requirements and guarantee options.
The long and short of it is that, despite uncertainty, it is a good time to be a British business looking for funding.
3. Diversification and education will drive growth
Many intermediaries believe they can sustain growth by diversifying and expanding their offering.
Across the board, delegates seemed to have diversification and education on their minds. Spotcap is an unsecured lender offering a wide range of personal guarantee options, but it wasn’t just commercial finance brokers that stopped by our booth for a chat with us. Brokers specialising in asset and property finance also wanted to meet the team and were keen to explore whether it would make sense to add an unsecured product to their client offering.
As one broker put it: “I prefer taking a proactive approach when it comes to business diversity. Our clients are aspirational and so are we.”
The Finance Professional Show continues to be a powerful place for UK’s financial intermediaries to get together with funding and service providers as we navigate changing times. If there is one take away from conversations on the show floor, it should be that funders are open for business and ready to lend responsibly, continuing their support for British businesses seeking finance.
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