Banks believe SMEs are, for the most part, receiving the finance they require, while SMEs often feel it's not even worth applying for finance in the belief that they will be turned down anyway. A recent study from the Business Finance Taskforce has actually shown that over half of SMEs who applied for bank credit during the past year were, in fact, successful. Similarly 72% of SMEs had overdrafts approved and 59% of SME loan applicants were successful.

While all this sounds good, it's all relative to the number of applications, and the reality is that only 15% of SMEs applied for new credit. Another important point is that the smallest SMEs are losing out to medium-sized companies in the finance stakes.

Monday saw the launch of a national mentoring scheme with an aim towards educating small business owners on the requirements for getting bank finance. Backed by the British Bankers’ Association, The Prince’s Trust and others it is the latest in a series of plans to try and create meaningful change within the area of access to finance.

Somewhere in the region of 200 current and former bank managers will initially be made a ready resource for small businesses. The hope is to guide company owners through the processes involved in applying for a loan. It is the government's hope that these bank-sponsored, trained mentors will form the core of a much larger network of support. This is in response to the closure of its Business Link advice centres which are set to conclude this autumn.

Your article this morning in connection with the closure of support networks for business does highlight some potential shortcomings when it comes to Government policy on nurturing start-ups and growth businesses.

The demise of Business Link as you point out will not be missed by many, but on the whole, our experience of the organisation was positive. Nonetheless, reform was due, but will a group of volunteer mentors be able to provide the support required. After all, this is a commercial world, and therefore mentors will look to be recompensed as individuals take advantage of their knowledge. As your contributor Nick Wall comments, he estimates his advice would have cost him £100,000.

Whilst we are seeing the closure of support networks, I note that Nick Ogden is starting up business.co.uk. Although I have yet to investigate the portal in any detail, it can potentially provide an avenue for companies to seek advice.