Asset Finance Demand Steady as Renewables Rise

Why It Matters

Steady asset‑finance demand, especially in renewables, signals continued corporate investment in sustainable infrastructure despite broader economic caution, while technology‑driven lending boosts efficiency and confidence.

Key Takeaways

• Asset finance applications rose 29% in H2.
• Renewables entered top three demand sectors.
• Digital underwriting adopted by 69% of brokers.
• Soft‑asset demand expected to rebound later 2026.
• Broker confidence improves as interest rates stabilise.

Pulse Analysis

The latest Allica Bank survey of over 570 asset‑finance brokers shows that demand remains resilient despite lingering economic uncertainty. While 45% of brokers reported a dip in applications, a solid 29% observed an increase in the second half of the year, and another 26% saw volumes hold steady. The most notable shift is the emergence of renewables as a top‑three sector, joining construction and transport‑logistics, reflecting heightened capital spending on green infrastructure and decarbonisation projects. This trend signals that established businesses are allocating funds to sustainable assets even as they postpone discretionary upgrades.

Technology is accelerating that resilience. Nearly seven‑in‑ten brokers—69%—now cite digital underwriting, automation and artificial intelligence as catalysts for faster, more transparent lending decisions. These tools reduce manual processing time, improve risk assessment accuracy, and enable lenders to scale without sacrificing service quality. For brokers, the combination of rapid credit approvals and clearer documentation translates into a competitive edge, especially when clients are selective about timing and asset choice. As fintech solutions mature, firms that blend algorithmic efficiency with human judgment are poised to capture the pent‑up demand for soft assets such as IT equipment.

Looking ahead, broker sentiment is cautiously optimistic, with 39% expressing confidence in growth for 2026 and 9% feeling very confident. Stabilising interest rates, clearer policy direction and the easing of macro‑level uncertainty are cited as key confidence drivers. Lenders that continue to invest in smart technology while offering flexible terms will likely benefit from the anticipated rebound in equipment upgrades and the sustained momentum in renewable projects. For investors and corporate finance teams, the message is clear: prioritize speed, transparency, and sustainability‑focused financing to unlock value in a market that is steady, not stagnant.