SMALL firms are finding it increasingly difficult to access finance, with only six out of ten of those applying for credit being granted it, research has revealed.

The Federation of Small Businesses, publishing the research today, highlights the fact that this 60 per cent success rate for applications for finance is the lowest in any quarter since the final three months of 2015. It is down from 74% in the second quarter of last year.

The proportion of firms describing the availability of credit as “poor” is, at 40% in the current quarter, the highest for two years. Only 25% describe credit as “affordable” in the current quarter, down from 30% in the same period of last year.

Around 14% of small firms are making credit applications this quarter, in line with previous surveys, the FSB notes.