Australian businesses are becoming more optimistic about the future with one in five intending to borrow money to grow their business over the next three months.

Business borrowing plans have rebounded to their strongest level in more than three years, according to the Dun & Bradstreet Business Expectations Survey.

Capital investment and hiring expectations also lifted, with 21 per cent of businesses expecting to hire new staff, suggesting firms are anticipating increased activity.

Sixty-four per cent of businesses are more optimistic about growth in 2014 compared to 2013.

Confidence and willingness to take on debt had been on the rise since the 2013 federal election, following 12 months of pessimism and uncertainty, the survey said.

“Credit is a driving force in the economy and a critical tool for business investment and expansion, making this recent upward trend in borrowing plans particularly encouraging,” said D&B head of group development Adam Siddique.

“While sentiment has taken a hit since the release of the federal budget, the general outlook for business activity remains well above last year’s levels.”

Although expectations for sales, profits and selling prices had edged lower, the uptick in borrowing and hiring intentions was a good sign, said D&B economic adviser Stephen Koukoulas in Monday’s statement.

“Overall, it is a picture where the Reserve Bank of Australia is likely to extend the period of interest rates on-hold, which, with rates at current record lows, is likely to remain a positive influence for the business sector over the second half of 2014,” Mr Koukoulas said.