The data was collated from more than 100 finance brokers who submitted over 950 finance applications for SMEs in June.

While the study results suggest high-street banks are less keen to lend to SMEs, 81% of brokers predict that demand for SME financing will rise over the next six months — meaning many small businesses might be left high and dry.

According to brokers, firms are starting to become more concerned about accessing finance, as 12% of respondents cited that as being the biggest worry for SMEs, up from 9% in Q1 2023.

However, the top concern for SME clients appears to be the increased business running costs, quoted by 37% of brokers.

Steven Mooney, CEO at Fundmypitch, commented: “Once again, the big banks are failing in their duty of care to British businesses.

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“After receiving taxpayer-funded bail outs, it’s truly astounding that these organisations aren’t doing more to support hard-pressed entrepreneurs during their hour of need. 

“The government cannot continue to sit on its hands around this issue and should order banks to provide lifelines to companies that need it to get the economy moving again.”

Colin Goldstein, commercial growth director at Iwoca, warned of the economic consequences of SMEs failing to access their necessary finance.

“With high-street banks continuing to pull back from SME lending, small businesses need attractive options for financing, or the significant growth potential that they offer the economy will be lost,” he said.

Martin McTague, national chair at the Federation of Small Businesses, said higher interest rates are posing an “existential threat” to some small businesses.

“A wide product range beyond traditional loans and overdrafts could help small firms access some of the funding they need, while helping banks grow their new business levels in a sustainable way,” he added.