The Government backed Loan scheme designed to give SME's cheaper borrowing facilities, has four banks onboard and £5billion will now be made available to the smaller company at 1% less than market rates.

This sum is part of £20 billion that will be offered to companies with turnover of less than £50 billion, through the National Loan Guarantee Scheme (NLGS).

The finance will come through Barclays, RBS, Lloyds and Santander who will be able to borrow favourably though the Government scheme, with HSBC not taking part, as it has said that it does not need to access the cheaper Government funds, being funded naturally through client account balances.