A brief Asset Finance market update
Weren’t interest rates supposed to be falling by now? Certainly, that was the view of many globally around the end of last year, but sadly inflation has just been too difficult to get out of the system. It looks like we may finally be making progress, and the most interesting bit of data from last week was, in my view, retailer Next saying inflation is falling fast in their supply chain.
I think most asset finance firms, and lenders in general, have been pleased with the resilience of their lending book. Certainly, the uptick in hiring within collections and recoveries teams hasn’t materialised. A great piece of research from Sirius Property Finance highlighted that asset finance has seen a 9.7% annual increase, as firms look to the future without wanting to put down lump sums on new equipment. It’s actually an amazing indictment of the robustness of the UK economy. Also, the UK lending environment seems to be operating in the way the regulators intended it to and has been robust, even when rates have risen dramatically.
Nobody is saying it’s easy. Construction is going through a tough time as an example. However, the demand for skilled underwriters and BDMs with relationships never seems to diminish too much. However, uncertain times act as a reminder to us all to keep our skills fresh, to take on as many different responsibilities as we can, and to embrace change. In my experience, every firm emerges from a slowdown different than the way they went into it, whether it’s improvements to service or a more laser-like focus on the type of business they want to be writing.
Our advice to leaders is to keep on investing in your team’s development, because when the upturn comes you don’t want to lose your best people due to boredom.
About Fram Search
Established in 2010, Fram Search is a specialist financial services recruitment consultancy. We focus on mid-to-senior hires in the UK and internationally. We provide high quality contingent and retained recruitment services to boutiques and global brands.
Our experienced Specialist Lending & Asset Finance practice has long established relationships, outstanding market knowledge, and access to deep talent pools. Fram takes a highly consultative approach, combining outstanding tech with a human approach. We are proud that our contingent fill rate is nearly three the industry average and we augment our retained search methodology with rigorous psychometric testing. We take ESG seriously, we are champions of diversity and all staff have undertaken unconscious bias training, we also carbon offset.
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