Brokers are ready to support SMEs achieve their growth goals and ensure that have the right assets for the job, writes Ian Galbraith, Paragon's Head of Broker. 

The importance of brokers to the success of the UK economy cannot be understated. As a vital link between the potential of an SME and the achievement of their goals, they ensure that essential financial support reaches businesses at the right time.

However some firms remain unsure whether such support is right for them. Rather than working with a broker to find the right funding package, they instead chose to delay investment or wait until a second-hand asset becomes available.

This may at first seem like a prudent move. Cash reserves are maintained, and a cheaper alternative may appear on the market, but at what cost?

Waiting for a better option can often be more costly. Maintenance costs, higher energy bills, and less efficient assets can all erode any potential savings – and may end up costing an SME more than they had expected.

Also, many firms are concerned about what it means for their business by seeking financing. Some may feel it reflects badly on them and that it is a sign of their underperforming.

Nothing could be further from the truth. The overwhelming number of SMEs seeking financing are resilient firms looking to grow, innovate, and adapt – and financers and brokers are ready to back them.

Recent Paragon research found that in the first quarter of the year alone half of UK SMEs sought asset financing – with over 57% of those businesses seeking over £100,000.

That asset financing is sought by so many businesses is a positive sign, and it clearly demonstrates how it is part of normal working practice for countless successful firms. Businesses are seeking to invest in and enhance their operations, preparing themselves for the opportunities that lie ahead.

The task ahead for brokers and lenders is to ensure that they are working in partnership to help ensure that SMEs can reach their full potential. Paragon is ready to collaborate with our partners to make sure this happens – not just for the benefit of individual businesses, but for the economy as a whole. 

• Visit our website to learn more about how our Asset Finance team works with intermediaries.