An increasing number of businesses are looking for funding to invest in improving their sustainability credentials, according to a new survey by Allica Bank.

54% of the commercial mortgage brokers that responded reported an increase in demand, with 25% describing that increase as ‘large’.

Demand is principally being driven by clients looking to improve the green credentials of their current premises or move their business to more energy efficient properties (66%). 39% of businesses are seeking finance to upgrade to more modern machinery, while 11% want to shift to electric vehicles.

Despite the increasing demand from businesses for funding to support green initiatives, however, only 38% of commercial mortgage brokers surveyed believe that there is enough funding currently on offer to help SMEs hit their sustainability targets.

Charissa Chang, head of sales for the North & Midlands at Allica Bank, said: “It’s incredibly encouraging that there’s such a strong demand among businesses to go green, but it’s crucial that banks match this ambition with financial support.

“At Allica, we continue to explore ways we can help more businesses achieve their sustainability targets, such as providing a discount for businesses looking to borrow against a property with an A-C energy performance rating.

“What’s clear is that sometimes these projects can be complex, which has made it hard for some businesses to find the funding they need. That’s why the support of a broker can be absolutely key, along with a lender that’s willing to listen and that wants to help.”