British banks are rejecting in excess of 40 per cent of credit applications from small businesses.
That is according to the latest Voice of Small Business Index released by the Federation of Small Businesses (FSB) this morning (17 September), which has shown that many financiers remain reluctant to lend as the UK's double-dip recession continues.
The report- which involved questioning around 2,600 small companies across the country - found that 50 per cent of all such firms want to expand over the course of the next 12 months.
However, an increasing number of organizations are being denied access to credit, with 42.4 per cent stating a loan application had been rejected during the last quarter, compared to 40.6 per cent in the previous three-month period.
John Walker, national chairman of the FSB, commented: "Businesses want to grow and invest but they need a helping hand to do so. It is frustrating that bank finance is still difficult to get."
By Gary Cooper