Nearly seven out of ten (68%) of SMEs are planning to take out some of form of business finance in the next 12 months to help them grow, a survey has discovered.
Alternative finance lender Liberis surveyed more than 300 SMEs and found that bank loans are now the least used option with just 15% using them, while non-traditional financing options accounted for almost half (46%) of SMEs opting for this route.
In the hospitality industry, some 42% of pubs, restaurants, hotels and B&Bs, indicated they would use finance to undertake refurbishment projects, with around a fifth of those seeking to borrow between £10,000 and £20,000.
The hotel and B&B industry make up around a quarter (24%) of SMEs looking to borrow over £100,000 (24%).
Meanwhile, salons and other beauty businesses most often want to use business finance to purchase new equipment (56%), as do chemists, opticians and dentists (64%).
Rob Straathof, CEO of Liberis, which recently partnered with the government-backed British Business Bank to provide up to £10m to support its financing of small businesses, said: “Despite the economic uncertainty surrounding Brexit, it’s business as usual for the vast majority of SMEs. Small businesses are continuing to borrow to expand their business, finance refurbishment and new equipment as they remain positive about future business growth.
“SMEs are also increasingly turning away from bank loans in favour of alternative finance. The sector is growing rapidly and we will continue to provide the flexibility small businesses crave when looking for funding.”