According to a new survey from fintech company Bizfi, more than half of small business owners are investing in equipment (57.8%), but the majority are purchasing equipment outright (82.9%) as opposed to leasing.

More than half of small business owners are putting an emphasis on investing in software (53.7%) and a majority indicated that they prefer alternative financing options (67.6%) when it comes to assessing growth or working capital. Specifically, 20.7% plan to access short-term financing, less than a third (31.53%) plan to borrow funds from a local bank and 27.9% plan to use a credit card or line of credit. In addition, 28.7% of respondents said they were affected by the Federal Reserve’s interest rate hike earlier this year, which impacted their willingness to spend and invest in their businesses.

“Given the fact that traditional banks have curbed their lending to small businesses coupled with the prevalence of alternative lenders which provide fast access to funds, it is no surprise SMB owners are turning to these sources of capital with increasing frequency,” said Stephen Sheinbaum, founder of Bizfi.

Although survey respondents may be looking outside of the banking world for financing, a large majority reported that they are investing more in their business in 2016 than 2015 (87.5%). Of those business owners who said they will be investing, the vast majority (91.4%) plan to borrow funds to do so. More than a third (38.3%) plan to borrow between $10,000 and $40,000 and 37.5% plan on borrowing more than $40,000.

“It is clear both through the survey as well as seen in the uptick in application submissions we receive on a daily basis that small businesses are looking to improve and grow,” said Stephen Sheinbaum, founder of Bizfi. “They are strategically planning for these endeavors, and accessing capital to do so.”

More than half of respondents (61.7%) are borrowing funds for working capital and of those, 38.3% will use the money for marketing purposes. More than a third (38.3%) are borrowing to invest in inventory and 30.9% are doing so to hire employees.