Businesses have been accused of lacking the key knowledge they require to use asset-based lending.
A survey carried out by Close Brothers Business Barometer revealed 62 per cent of 500 businesses in the North West are aware of the product which allows businesses to use a combination of assets such as invoices, equipment, stock or property as security for funding.
The survey also found that out of those who knew about asset-based lending, less than a fifth would consider using it.
Clare Coria, regional sales director for Close Brothers Invoice Finance in the North West, said: “Asset-based lending is a unique, strategic financial solution.
“By using a carefully considered blend of asset-based lending, firms can significantly improve their cash flow and facilitate plans for expansion.
“We are working hard to raise awareness of viable funding options and ensure that local businesses get the advice and support that they need.
“The barometer showed that many SMEs are anticipating growth within the next year, but many are unaware of the full range of financial options that are available to fund their plans.”
The survey also showed that cash flow is the main day-to-day concern for more than a fifth of North West business owners.
Mrs Coria added: “With so many SMEs struggling to maintain healthy cash flow, it is more important than ever that businesses carefully review their financial strategy on a regular basis.
“Our team have experience in a wide range of industries, enabling them to tailor appropriate packages to suit individual business needs.”