In its quarterly Credit Conditions Survey, the BoE said that the availability of unsecured credit to small businesses had also increased in the past quarter. However, contrary to expectations, it said demand for secured credit from small businesses had fallen.

The BoE warned that defaults were likely to increase in the coming quarter resulting in higher lending prices being offered by banks. Despite this, risk appetite among lenders to small businesses is projected to improve marginally.

In the print industry, securing short-term credit over the coming months will be one of the key challenges for business owners and Gerry Hoare of Dealbureau warned that alternative funding, such as high-interest non-prime lending, remained rife.

He said: "Banks often take too long to respond in the event of a short-term requirement and companies are driven down alternative and costlier routes."

Hoare said that companies should always have up-to-date cashflow forecasts to enable them to recognise any upcoming problems and approach the bank in good time to secure lending.

"The bank should be the first port of call and you should have a regular dialogue with your bank manager to ensure that you have the time to secure funds for when you need them," he said.