The UK’s top entrepreneurs are increasingly looking at alternative sources of finance due to the difficulty of securing credit, a survey by Investec Specialist Private Bank has found.

The survey found that 77 per cent of entrepreneurs are planning to secure funds in the UK during 2010, but 59 per cent believe this will be difficult to do. A further 15 per cent said they expect it to be very hard.

In light of this predicted difficulty, the entrepreneurs surveyed said they are turning to alternative sources of finance: 35 per cent intend to use invoice discounting and asset-based lending; 28 per cent are considering using private equity; and 17 per cent are looking at mezzanine finance.

A further 17 per cent plan to raise capital by selling equity in their business, while 11 per cent intend to borrow from friends and family. One in four said they will rely on credit cards.

But the picture isn’t uniformally bleak: the research, which was carried out in partnership with the Entrepreneurs’ Organization, found that 72 per cent of respondents view the current UK economic climate as an opportunity rather than a threat.

They did however acknowledge that there are significant challenges facing businesses. Half of those polled said that lack of client demand was a challenge, while one in three cited political and economic uncertainty as a worry. One in four highlighted access to credit as a challenge and 17 per cent are concerned about onerous legislation.