New research has revealed that small and medium sized enterprises are still struggling to access affordable commercial finance, which has led many to turn to short-term loans.

The National Association of Commercial Finance Brokers (NACFB) has released the results of its latest annual survey, which shows that, despite a rise in lending over the past year, funding remains hard to come by.

Chief Executive of the NACFB, Adam Tyler, said that short-term lending – such as bridging loans – and development funding have also shown a revival over the last twelve months, alongside commercial property lending, which is up 19 per cent year on year.

Mr Tyler said, “Despite many lenders' protestations that they are lending more than ever, these figures reveal what anecdotal evidence has already shown: that funding for businesses is still very hard to access.

“We have continued to see the SME community struggling to raise funding and being faced with increased costs. The increase in invoice finance for the third consecutive year shows that our members are seeking more cost effective borrowing where they can, as overdraft limits are reduced but costs have increased,” he added.

The research also revealed that, although many of those surveyed reported a criteria ease in the early stages of this year, sparking hopes of a more positive lending environment, this has tightened up once again as we head towards the end of 2010.