Just under 80 per cent of small businesses do not need or want a loan to help build their operations or invest in expansion plans, new figures suggest.

The SME Finance Monitor found that 79 per cent of firms were not seeking finance – labelled “happy non-seekers of finance” during the final fourth months of 2013.

It was the largest proportion recorded by the monitor and adds to fears that business investment is drooping despite a pick-up in the economy.

"SMEs ended 2013 feeling more positive about the economy," said Shiona Davies, director at research firm BDRC Continental, authors of the report.

"However, there are few signs of this leading to an increased demand for external finance."