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Nottingham’s Sterling Capital Reserve has told Insider it has "more than £1m" to lend the region's businesses. However, potential borrowers are said to be put off by a perception that it is "impossible" to access, according to managing director David Griffiths.

He said that despite the commercial finance broker having a large pool of funds available, businesses are "sometimes scared" to approach lenders for fear of being turned down.

"There is a perception out there that no banks are lending but they are," said Griffiths. "Okay, we aren’t talking about the volumes of previous years but in terms of the percentage of applications that come in and then gain finance we are at a similar level.

"The problem is that many businesses are put off from applying due to a prevailing perception that it is a waste of time and that they may even end up in a worst position after a review."

Sterling Capital established "dating agency" lender Strata Finance for borrowers and investors within the commercial property market last year. The firm matches potential lenders to projects in need of a cash boost.

"We will never see banks go back to purely security based decisions," admitted Griffiths. "We need to go back to basics here in terms of forecasts and letters of intent with a robust set of numbers. The quality of the business plan often kills an application. Businesses need to think about what questions an investor and the credit team need answering."