One third (31%) of UK SMEs in the transport sector, or 85,200 businesses, are expecting to expand over the next 12 months, according to the Close Brothers Business Barometer.

More than half (52%), or 142,916 businesses, are expecting business performance to stay the same.

The quarterly survey of UK SME owners and senior management from a range of sectors also revealed that one fifth (19%) of SMEs in the transport sector believe their business is prospering in the current economy. Moreover, when describing their current economic outlook, just two fifths (40%) of SMEs in the transport sector believe the worst is behind them and that they are confident about the steady recovery of the economy.

John Fawcett, managing director of the transport division at Close Brothers Asset Finance said: “With the UK economy continuing to strengthen, it is encouraging to see that a significant number of business leaders in small and medium sized enterprises are expecting to see their business expand throughout 2016.  It shows a real belief in the market and the future of their business.”

The results also found that over a third (34%) of SMEs in the transport sector are planning to seek funding for business investment in the next 12 months, with one third (32%) of these businesses hoping to borrow up to £100,000 and a further one in five (18%) planning to apply for funding  of more than £100,000.

Despite this, the study also showed that one in ten (9%) of SMEs in the transport sector have missed a business opportunity in the last 12 months, due to lack of available finance, with one third (33%) of these SMEs missing multiple opportunities.

Fawcett added: “Our study clearly shows that investment will be key to a lot of companies in 2016, and we know from our experience in the market that many of these will be using the funding to grow their businesses.

“With this is mind, it is vital businesses understand what assets or finance are required at all times. This is to ensure no business opportunities are missed and that they successfully manage the future needs of the business. We would urge any business owners planning to apply for investment in the New Year to ensure that they regularly assess their plans and evaluate all of the financial options available to help them find the most appropriate solution to fit their business needs.”

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