More than a third of small and medium-sized businesses have been declined a bank loan in the last quarter, according to data released by Sage.

The survey of 1,500 SMEs also revealed that 58% of the businesses questioned did not feel they were given an attractive rate for their loan.

"The decision on a loan can make or break a firm, so it is a concern that so many SMEs that evidently believe they need the funds are being declined," said Robin Moore, Product Manager of Sage's Small Business Division.

"There are a range of best-practice measures that entrepreneurs can adopt to increase their chances of getting the green light on a loan and our advice would be to put yourself in your bank's shoes and think about what they would need from you."