UK small and medium-sized enterprises (SMEs) are struggling to get access to finance at the moment.

The Bank of England's latest Trends in Lending report shows that loans to firms dropped by £3 billion in the quarter to May.

It highlights how SMEs with business insurance are being especially hard hit in the process, as the price of borrowing continues to rise - despite the fact the Bank has kept interest rates at the historic low of 0.5 per cent since March 2009.

At the last meeting on July 5th, the decision to keep the rate at this level was unanimous.

Christopher Shaw, chief executive of alternative finance provider Platform Black, told the London Evening Standard: "The banks' claims that they are open for business and willing to lend are sounding ever more hollow."

He added hardly any of the money created through quantitative easing is making it through to the real economy.