smallbusiness.co.uk: Helping your business think big

When seeking financial help, SMEs should speak to their banks rather than just filling out an online application form, according to financial experts.

Andy Berrow, senior business advisor for Business Link, says: 'My experience is that banks see small businesses as a mass market and use credit scoring and trend analysis techniques to arrive at a lending decision.'

He adds that the recommendation of a lending official who has a grasp on what the business is about can also help.

However, stricter borrowing criteria and the effects of the credit crunch are unlikely to reduce the number of entrepreneurs starting up their own SME, Business Link says.

In November 2007, a report for CBI revealed that more than a third of those in charge of SMEs were worried about the effects of the credit crunch.

Findings showed that 12 per cent of respondents had already seen funds drying up while a further 22 per cent anticipated some constraints over the course of the next three months.