The survey suggests that UK SMEs are keen to invest, with the average size of investments increasing by 20% in the last year. Within this positive picture, nearly half of respondents (48%) said that they would invest, or invest more, if they had additional information on the different funding options available.”

While the survey suggested that familiarity of funding method correlates to the funding method used, with bank loans and overdrafts being the most prevalent, the results indicated that there are more informed businesses that recognise that there are different funding solutions for different situations, with nearly half (48%) saying that they use more than one funding method.

When described as contract hire, hire purchase, operating lease or finance lease, 52% of the sample had previously used asset finance. Of those who hadn’t used this method of funding, a third (33%) said they would consider using it in the future if they had more information on how it could benefit their business.

When it comes to these benefits, those who used asset finance stated that freeing up cash flow (46%) and spreading payments (42%) were the main advantages.

Asset finance provides a prime source of funding for those businesses looking to equip themselves for growth and while we know from the Finance & Leasing Association figures that the use of asset finance is growing as confidence returns, this survey suggests that the appetite for asset finance and other alternative funding methods is considerable, perhaps even more so than we imagined. It’s now time that we take this on-board as a sector and start the education process to fulfil our potential.”

Ian Isaac is Head of Lombard.