Shawbrook Bank, which is 100% owned by RBS Equity Finance - an independent arm of RBS, has been formed through the merger of Whiteaway Laidlaw Bank, Link Loans and Commercial First.

A survey of more than 800 SMEs by the bank revealed that 89% believe banks do not use common sense when making decisions about business loan applications, while 45% feel banks are too bureaucratic when dealing with SMEs.

Shawbrook chief executive Owen Woodley, a 20-year veteran of Barclays, said the bank would aim to change that by making it easier and more straightforward for credit-worthy SMEs to borrow.

He said: "At a time when SMEs should be given all the help they need to grow and succeed, it’s worrying that so many feel they are up against a loan application system that is unclear and obstructive.

"Having access to the right finance at the right time is vital for an expanding small business —and so is having a straightforward and efficient lending process. It's all very well for a bank to say the money for SMEs is there to lend, but if the process is bureaucratic and inflexible it means nothing but lost opportunities and slowed growth."

The bank will offer loans to SMEs through a network of brokers rather than using branches, which it said would streamline the lending process, allowing it to act "quickly, efficiently and with common sense".

Woodley said: "When we created Shawbrook Bank we spent time listening to the needs of small businesses. We have chosen to operate through brokers rather than a branch network which makes us efficient and agile, and we make fast, robust decisions based on common sense and knowledge of our customers — not a computer score."

Shawbrook Bank will offer lending and savings products to small and medium–sized businesses, and individuals. Lending to SMEs lies at the core of its business, and it is focussed on making it easier for credit–worthy SMEs to borrow in the most flexible and efficient way.