A new study by Greenwich Associates, a leading provider of global market intelligence and advisory services to the financial services industry, shows that leasing is gaining popularity amongst small and medium sized enterprises (SMEs).

The company’s most recent Greenwich Market Pulse survey shows that around a quarter of the 218 SMEs who took part have obtained credit from a non-bank provider in the past 18 months. That finding is consistent with results from a Q2 2014 Greenwich Market Pulse.

Nearly all reported that they have found the experience so positive that they would borrow from a non-bank lender again.

About 80% of these companies say the process of obtaining credit is easier with non-banks than with traditional banks. Half (51%) contend it is “much easier” to get credit from non-bank lenders. Of even more concern to traditional banks is the fact that roughly 94% of non-bank borrowers say they would obtain credit from a non-bank provider again. That share is up from the approximately 89% of non-bank borrowers who said they would return to non-banks for credit last year.

“There is still a perception that companies borrowing from non-banks are doing so because other banks won’t provide them with credit,” says Greenwich Associates consultant Dana Schwaeber. “While some companies certainly do turn to alternative providers after being turned down by traditional banks, non-bank providers are widely viewed as being easier to work with than traditional banks, and our study results suggest they are becoming increasingly competitive in price.”

The most popular types of non-bank lenders among companies in the Market Pulse are specialty finance leasing companies including OEM financing, which were used by one-third of the non-bank borrowers. About a quarter borrowed from special-purpose enti¬ties, including business development companies and hedge funds, and about one in five raised capital through private placements or private loans.