A third of small business are still struggling to get credit from banks, despite recent commitments to lend fairly, according to research by the Federation of Small Businesses (FSB).

The survey of 500 firms revealed that over 30% had experienced a rise in the cost of new or existing credit in the past two months.

"With interest rates down, it is more important that ever that the governments small business finance scheme is put on banks, The onus will now be on the banks to open their pockets to small businesses," said the chairman of the FSB, John Wright.

The survey also revealed that around 65% of small companies have experienced a decrease in trade over the last two months and that in the same time period 40% are being paid later for services and supplies.