The statement comes in light of recently-released Bank of England figures, which reveal that although £4.4 billion has been drawn down through the Government’s Funding for Lending Scheme (FLS), only £0.5 billion has been passed on in net lending.

Though the Bank of England warned that it is too early to judge the success of the FLS, some commenters have found cause for concern in the published figures.

Paul Aitken, CEO at borro, said: “While it’s encouraging to see lending to businesses has increased since the inception of the Funding for Lending Scheme, some of the major banks are still falling far below the lending targets set.

“It is clear that many small businesses are continually struggling to keep their heads above water, highlighted by recent data from the Federation of Small Businesses, showing that four in ten SMEs are still refused loans. As a result, millions of small businesses have minimal confidence in the banks and have turned to alternative forms of financing.

Paul added: “60 per cent of our current client database is made up of small business owners looking for an easy and accessible route to gaining the instant finance they require. We are witnessing continued growth, with the average loan value forwarded to small business owners and the self-employed increasing by 41 per cent, from £17,000 to £24,000, from the beginning of this year to the end of Q3 2012.”