Analysis of industry data by Cambridge & Counties bank, which launched in June this year targeting established small to medium sized enterprises (SMEs), reveals that businesses across Britain had 27,300 overdraft and loan applications worth as much as £1.264 billion rejected in the first quarter 2012.
The analysis by Cambridge & Counties also revealed that 300 applications are turned down every day, equating to 13 an hour.
The average credit facility turned down was £46,300.
Cambridge & Counties Bank is jointly owned by Cambridgeshire Local Government Pension Fund and Trinity Hall, a College of the University of Cambridge.
Gary Wilkinson, chief executive, Cambridge & Counties Bank, said: “The UK relies heavily on the SME sector which is essential in leading our economic recovery. To grow and be successful, a large number of organisations are looking to raise capital, but it has become harder to raise funds from the big banks.
“We focus on a local and personalised relationship approach consisting of business development managers focusing primarily on Leicestershire, Cambridgeshire and Northamptonshire, coupled with a national broker coverage model.”
Cambridge & Counties Bank provides SMEs with loans secured against commercial property as well as a deposit account. In addition, it also offers secured pension scheme lending, and has plans to launch professional firm financing, as well as other savings accounts into both the retail and non-retail sectors.