Small businesses in Kirklees have been urged to “play by big business rules” in order to get their share of increased bank lending.

Figures from the Bank of England recorded a £720m increase in overall net lending to non-financial businesses during September – the fastest growth in business lending since January. But the share going to small and medium-sized businesses fell by £383m.

Nick Brook, of TaxAssist Accountants in Huddersfield, said: “Big businesses have whole departments dedicated to data recording, financial forecasts and business planning, so are able to tick all the bankers’ boxes when approaching them for loans.

“But small businesses, which have a strong business case, can open the door to vital funding by playing by some golden big business rules.”

Mr Brook urged smaller firms to work with their advisers to produce a clear business plan and cash flow forecast backed up by reliable evidence and a good track record.

Firms should also understand their numbers and practice presenting their business plan before meeting the bank.

He said: “For loans over £25,000, banks will expect to take some sort of security, typically a second charge on a property or other asset. Where security isn’t available, the bank has the option of the government-backed Enterprise Finance Guarantee Scheme.”

He urged firms: “Show that the borrowing requested will be paid back and that it’s enough to run the business and how you will fund your living expenses.

“Never under or over borrow – under borrowers could be forced to go back to the bank within a year, cap in hand; over borrowers pay more in interest than they need to.

“Keep in touch with your bank and provide them with up to date information including good news and bad news – banks do not like surprises!”