Net lending to small businesses is still falling according to the latest stats from the finance industry.

The Bank of England says lending by mainstream banks fell £500 million in the three months to February, continuing a four-year decline.

A silver lining was that the drop was smaller than in the previous three months, in which lending shrivelled by £3.3 billion.

The Bank of England wrote: "Lending growth rates for small and medium-sized enterprises (SMEs) were stronger than for businesses overall during 2009, perhaps reflecting large companies’ better access to alternative sources of finance such as capital markets.

"The growth rate in the stock of lending to SMEs has been negative for the past four years across a range of measures, though has contracted by less since the start of 2013 according to data from the Bank of England."

Meanwhile, Peter Savage from alternative lender Azule Finance said: “Small businesses that regularly borrow from banks should be quaking in their boots.

“The figures suggest those who use bank overdrafts, borrow and lease assets would be wise to seek alternative means of financing these activities.”