A vast number of businesses are finding it difficult to secure funding from their banks, making trading difficult.

Findings from ISME’s Bank Watch Survey suggest this is the case for 89 per cent of companies, which could lead them to require the services of a debt management company.

"No bank is taking on business from another bank at present so there is no competition when it comes to negotiating better credit terms," suggested John White, president of the Certified Public Accountants in Ireland.

Banks are also looking to increase margins on loans, he continued, which erodes the potential benefits of falling interest rates.

The survey also revealed that 94 per cent of businesses have seen a rise in the number of incidence clients who have been refused loans or have seen the removal of existing credit facilities.

A recent report from the Confederation of British Industry found that the UK recession deepened more than expected in the first three months of this year.

It claims that the recovery will be slow and fragile, with gross domestic product growth resuming only in the spring of 2010.