According to the Institute of Chartered Accountants in England and Wales (ICAEW), many small businesses are unable to borrow from banks, because lending criteria is too restrictive.

The banks are countering this claim by saying that demand from small firms has fallen as SMEs concentrate on paying back existing loans.

The annual survey from the National Association of Commercial Finance Brokers (NAFCB) reveals that in the mid-2000s, nearly £20bn was being borrowed, but this went down to under £7bn and now just over that.

Michael Izza, the chief executive of ICAEW, said: “Before the recession, banks were lending to businesses they probably shouldn’t have been lending to and they were guilty of probably being rather exuberant in their lending. [Now] banks are being a little more choosy about who they lend to. They’re also charging more money, they’re making sure that the lending they do make to businesses, they can make money on. They’ve been getting their balance sheets in order for the last year or so.”

As well as noting a rise in fees, such as those levied for arranging an overdraft, the ICAEW backed up the banks’ assertion about demand, saying many SMEs were concentrating on paying off debts and managing with the money they had.

Despite complaints from some businesses about the banks’ attitude to lending, the ICAEW survey found the percentage of SMEs saying access to capital is a challenge fell to 20%, from 30% at the end of 2009.

Last week, the government set up a task force involving the major banks and key government departments to examine whether banks are making life too tough for SMEs.