Asset finance demand steady as renewables rise

February 16, 2026

Allica Bank, the challenger bank for established businesses, has released new survey findings from more than 570 asset finance brokers, revealing steady demand for asset finance and a notable rise in renewables as a key sector for applications.

The survey found that 29% of brokers reported an increase in asset finance applications in the second half of the year, up from 26% in Allica’s previous survey six months earlier. A further 26% saw no material change in application volumes, indicating consistent demand despite wider economic caution.

While 45% of brokers experienced a decline in applications, many attributed this to businesses delaying equipment upgrades due to economic uncertainty. Brokers suggested that this pent-up demand is likely to return later in the year, particularly for soft assets such as IT equipment. Some vehicle and haulage segments, however, may continue to see softer growth as firms extend the use of existing assets.

Sector-wise, established businesses across construction, transport and logistics, and renewables were identified as generating the strongest demand, Allica Bank said. Notably, renewables entered the top three sectors for the first time.

Technology was also cited as a key driver of efficiency improvements across the lending process. More than two-thirds (69%) of brokers said digital underwriting, automation and artificial intelligence have enhanced the speed and efficiency of lending decisions, marking a significant increase compared with six months ago. Brokers reported that faster decisions and clearer processes are enabling them to serve clients more effectively and unlock investment opportunities more quickly.

Looking ahead, sentiment among brokers is cautiously optimistic. Nearly 39% said they feel confident about growth in 2026, including 9% who described themselves as very confident. A further 38% said they feel neutral, while 23% expressed concern about growth prospects.

Brokers pointed to easing uncertainty, expectations of stabilising interest rates, clearer policy direction and businesses adapting to cost pressures such as National Insurance increases as factors likely to support improved confidence.

Commenting on the findings, Allica Bank head of broker asset finance sales Brandon Hall said, “What this survey shows is a market that’s steadier than many might expect. Even with ongoing economic pressure, a large proportion of brokers are still seeing demand hold up, and in some cases grow – particularly in areas like renewables.

“For brokers, the message is that activity hasn’t disappeared, it’s just become more selective. Businesses are often taking longer to commit, sweating existing assets, and relying on brokers to help them invest at the right moment. That makes speed, clarity and certainty more important than ever.

“As uncertainty continues to ease and interest rates stabilise, confidence is starting to return. Brokers who can move quickly, supported by lenders that combine smart technology with real human decision-making, will be best placed to help their clients unlock that pent-up demand over the year ahead.”