More than two-thirds of UK brokers generated the majority of their new-client business through referrals in 2012 with just 15% of brokers reaching most of their new customers through the web.
Research by asset finance lender, United Trust Bank (UTB) found new customers were most often referred by existing clients to 35% of those brokers surveyed while 32% said referrals from other associated professionals such as accountants and solicitors led to the most new-client business.
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Martin Nixon, head of asset finance at UTB, said the research clearly showed there was still very little to beat a personal recommendation when it comes to landing new customers.
He said: "While it’s important to have a good online presence and website there’s still a lot to be said for cultivating good business relationships and making sure your customer goes away feeling completely satisfied with the service you’ve provided."
The same research also found core business in the broker market continued to be in the sub-£100,000 sector with 58% of respondents indicating the majority of the business was for deals under six figures.
Less than a fifth of brokers surveyed said they routinely signed deals of £250,000 and above, although UTB said it had noticed an increase in broker-introduced business in this bracket.
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By GlobalDataThe bank also asked brokers what types of wheeled and tracked assets has been financed in 2012 and found commercial vehicles constituted nearly a third (29%) of broker’s business in that sector. Construction equipment was the second most popular in the sector, with 15% of brokers saying it was the asset area they most-often dealt in. Agricultural equipment and bus and coach accounted for the majority of business for 9% of brokers in each case, while car finance was the core business of 12% of survey respondents.
Nixon added: "It’s interesting to see that the commercial vehicle and construction sector remains the core business for most brokers.
"Any potential upturn in the construction industry this year, and there are mixed messages in this regard, would be very welcome to our broker partners. We continue to see a strong demand for refinance in these two business areas, as well as within the agricultural sector, as traditional bank funding remains elusive for all but a select few."
