How the European asset finance industry can address challenges and deliver opportunities for SMEs

SMEs are currently facing significant economic uncertainty, rising interest rates and higher costs of capital as Basel 3.1 impacts lending costs. Lenders are facing increased credit risk and regulatory changes and the potential for higher levels of default. What are the implications for SME funding in H2 2023 and beyond?

We have just published the summary and analysis of the Asset Finance Connect senior leadership interview, sponsored by Acquis. Odile de Saivre, CEO of SGEF, Bill Stephenson, CEO of PEAC Solutions, and Nick Leader, CEO of Acquis joined AFC equipment finance community leader John Rees to discuss how the European asset finance industry is well placed to support SMEs in Europe with their growth opportunities and challenges. You can read the webcast review here.

Following a review of the latest Acquis white paper “Opportunity in change: A market research report on SME business sentiment” to understand the resilience of the funding market for SMEs in UK, Spain, France, Poland, Germany and BeNeLux, our leadership panel discussed some of the outcomes from the European SME report focusing on the implications on business confidence and market sentiment in 2023 and beyond; growth opportunities and industry innovations in the SME market; and ESG and the effects of a growing commitment to a sustainable future.

Looking at the growth opportunities and challenges facing the SME community in Europe, Odile de Saivre, Bill Stephenson and Nick Leader discussed:

SMEs are still positive about the future despite levels of optimism dropping in 2023
Growth opportunities, which can be found in green assets and new usage-based financing products, come with their own set of challenges
ESG momentum is broadening with a universal transition amongst SMEs towards ESG policies and a sustainable future outlook

You can read the summary of proceedings and John’s analysis in full here.