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30 Spring 2021 U KSMEs,including those in non-consumer-facing sectors, are,increasinglymoving operations online according to research byClose Brothers Asset Finance’s. A survey of 900 SMEs conducted during the second lockdown reveals businesses are becoming more online based, with 28.3% moving day-to-day operations online, while 26% have seen an increase in online trading, and 9.1% a blend of the two. The remaining 36.6% have made no changes. For a sector breakdown, see Table 1. DIGITAL INFRASTRUCTURE With the move to online has come an increase in capital investment in rms’ digital infrastructure, with 60% of businesses making the commitment to spend more on this key activity. “We already live in a highly digitised world but it appears the pandemic has super-charged rms’ digital investment plans,” said Neil Davies,CEO,Close Brothers Asset Finance and Leasing. “From our own experience,we started our own digital transformation prior to the pandemic.This allowed us to quickly adapt to the ‘new normal’ while continuing to provide a seamless service for our customers. “Had we not done this, our customer service would undoubtedly have been impacted. From a commercial point of view, it was absolutely the right thing for us to do, despite the upfront – and ongoing – costs.” • 63% of SMEs have shifted more of their trading and operations online • 60% have increased their investment in digital infrastructure • Businesses split between investing in hardware or software Yes, day to day operations occur online more 28% 29% 43% 28% 24% 27% 29% 27% 18% 32% 26% Yes, more trading occurs online 26% 22% 28% 26% 23% 36% 30% 13% 31% 36% 18% Yes, both operations and trading happen more online 9% 5% 8% 11% 9% 6% 17% 13% 9% 7% 11% No, our business model is the same 37% 45% 22% 35% 44% 31% 24% 47% 42% 25% 46% UK total Construction Engineering Manufacturing Food and Drink Transport & Haulage Wholesale and distribution Print and Packaging Retail Recruitment Services Table 1: Has your business become more online-based as a result of COVID-19? Cash 17% 19% 25% 11% 15% 20% 14% - 20% 7% 13% Chip and pin payments 18% 10% 15% 15% 42% 22% 26% 13% 25% 32% 9% Online card payment 38% 39% 38% 48% 26% 34% 27% 33% 33% 50% 41% PayPal 9% 9% 7% 4% 3% 9% 14% 20% 17% - 8% Cheques 3% 7% 3% 1% 2% 2% 3% 7% 1% - 4% None of the above 16% 16% 12% 21% 12% 13% 17% 27% 4% 11% 24% UK total Construction Engineering Manufacturing Food and Drink Transport & Haulage Wholesale and distribution Print and Packaging Retail Recruitment Services Table 2: How has your business mainly been taking payments during the COVID-19 pandemic? HARDWARE AND SOFTWARE Businesses have been split between investing in hardware or software. When asked which was a priority, the responses were as follows: • Hardware: 39% • Software: 39% • Both: 22% ONLINE PAYMENTS Cash is continuing to play less of a role as way to make payments as online card payments – by a considerable margin – have become the most popular way to take payment during the pandemic, well ahead of both cash and chip & pin payments; see table 2. << Survey reveals changing trends in consumer and business-to-business practices. SMES INCREASING DIGITAL INVESTMENT DURING PANDEMIC

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