A key finding reveals that over half of the surveyed brokers are witnessing an increasing demand for funding from their clients, who appear eager to pursue growth, expansion, or property acquisition.

While this represents a slight dip from the final quarter of 2024, a corresponding rise in brokers reporting consistent demand suggests a strong underlying appetite for investment.

This apparent confidence, however, exists in the shadow of potential transatlantic trade headwinds.

With roughly 16% of UK goods exports destined for the United States, new U.S. tariff rates pose a direct threat to UK economic growth by dampening demand for British products.

This immediate impact is compounded by the potential for a significant indirect hit, particularly given the current fragile global economic landscape and mounting uncertainty.

Consequently, while commercial brokers report encouraging levels of business ambition, the looming implications of new U.S. trade policies are likely to have an impact going forward.

The importance of pricing

The latest Pulse survey underscores that price reigns supreme for business clients.

Lower interest rates are clearly fuelling increased demand for some, while price overwhelmingly dictates lender selection for commercial brokers, cited by 43% – significantly outweighing criteria flexibility and lender relationships (both at 20%).

However, the value of bespoke —  risk based — pricing often goes unacknowledged.

Brokers prioritise ensuring their clients receive rates tailored to their specific needs and circumstances, resisting standardised, "off-the-peg" solutions.

In fact, when we previously polled brokers on their wishlist for 2025, the greater provision of bespoke pricing — that recognise the idiosyncrasies of individual businesses — by commercial lenders was one of the most common responses.

Bespoke pricing means businesses benefit from flexible, risk based funding, and can unlock opportunities for growth that wouldn’t be available if they were handed the same rate as everyone else.

•   The Finance Professional Show 2024: The Video
•   Special relationships matter in a reviving commercial sector
•   Atom Bank changes stressed interest rate calculation for commercial mortgages

For brokers, the challenge is to find a low rate for the specific client, rather than relying on headline rates.

Finding funding is getting easier

A concerning element of previous editions of the survey has been the difficulty that some brokers face in securing the funding their clients need.

For much of last year, around a third of brokers said they had experienced challenges, and while that’s a minority, it’s nonetheless a significant portion of the market.

Thankfully, the SME Pulse survey for Q1 found that this proportion had dropped to less than a quarter, a fact brokers have attributed to the improved appetite - and choice - of lenders. 

Anyone who is serious about supporting British businesses should want to see that figure as low as possible, so it’s encouraging to see it heading in the right direction.

Ultimately however, brokers and their clients need consistency, they need to know that lenders will be keen to work with them even when times turn tough.

The role of automation

The increasing significance of automation emerged as a key theme in the latest Pulse survey.

A substantial proportion — over a third of brokers — reported their clients are actively adopting AI platforms and other technologies, primarily driven by the potential for cost reduction. This trend extends to brokers themselves, with nearly half indicating plans to enhance their own productivity, likely through automation, to better manage rising costs.

At Atom bank, we're already experiencing the benefits; our decisioning architecture automatically conducts a wide range of business and director searches instantly, and provides recommendations for further investigation where necessary, delivering significant time savings. 
Ultimately, technology's role will only expand for businesses, brokers, and lenders, with those who strategically integrate these advancements poised for the greatest gains.

This isn't about replacing human interaction, but rather augmenting it, freeing up individuals to concentrate on higher-value tasks.

Consequently, brokers and lenders who proactively embrace technological advancements stand to gain a significant competitive edge in the evolving landscape in the months and years ahead.