Travel and leisure companies are seeking to increase their borrowing to survive the economic downturn according to research from Santander Corporate Banking.
The study shows 11% of hospitality companies and 10% of travel companies are seeking additional borrowing to ensure they survive the recession while only 8% and 5% respectively are seeking additional monies for expansion.
The travel and hospitality sectors buck the overall trend revealed in the research, which shows that twice as many businesses across all sectors want to borrow to expand rather than to keep themselves afloat.
Overall, the study found that 57% of businesses were happy with their current level of borrowing but 17% would like to cut their debt.
Businesses with a turnover of between £1 million and £5 million proved the most optimistic, with 12% saying they need cash for expansion while those with an annual turnover of more than £25 million are less likely to want to borrow.
This latest research from Santander follows a recent study by the bank revealing that 75% of businesses are confident about their prospects in the next six months.