Tenet said the majority of the funding had gone towards business development or to help fund business acquisitions, while short-term support has also been provided to firms with cash flow problems when banks have proved unsympathetic or unwilling to help.

While banks will report collective interim results of around £8.5bn, lending to small firms remains restricted and Chancellor George Osborne has reminded banks of their “economic obligation” to help small businesses.

Keith Richards, distribution and development director at Tenet, said: “Whilst it is pleasing to see the new coalition government putting pressure on the banks, it is clear that there is going to be no overnight sea change.

“Until such time as the restrictions are relaxed and the banks feel they can operate less cautiously, it is important that we are able to provide reassurance and offer a vital safety net for our clients, should they need it.”

Richards added: “This is a crucial time for our sector and a lot of firms require investment capital to develop their businesses or cash flow facilities to help them work their way out of the tough trading environment we still find ourselves in.”

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