According to financial services firm Bibby, 20 per cent of businesses are left in the dark about their bank’s decision to refuse a loan.

Edward Rimmer, chief executive at Bibby, says: ‘Access to finance continues to be a real issue for small businesses, with many falling short of strict lending criteria, yet small business owners have a right to gain access to the rationale behind a lender’s assessment.’

Some 64 per cent of those surveyed say it has become more difficult to secure bank funding than a few years ago.

The findings come as the latest figures from the Bank of England show that lending to businesses was down by £6.5 billion in January compared to the same month last year, falling to the lowest amount since records began.

Philip White, chief executive of finance provider Syscap, says: ‘Many profitable SMEs are not daring to invest properly in their own businesses. Not only does this hinder the economy’s recovery in the short-term, but in the longer term a low level of investment in business assets will undermine the UK’s international competitiveness.’

Related: Are bank loans too expensive?