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Is Britain's economic recovery going to be stifled by banks not offering sufficient finance to small and medium size companies?

Firms are concerned that although the banks say they are open for business the reality of the terms, conditions and fees make it unrealistic for them to apply for finance.

In frustration, some businesses have turned to foreign banks to make finance available to them.

And at a time when hi-tech businesses are seen as a source of future growth for the British economy, companies complain that banks are assessing loan applications using traditional business criteria which offer little support to this sector.

As the part state owned banks fail to meet lending targets set by the previous administration, the new Business Secretary Vince Cable says he is determined to address this. But in the current climate how much more financial help can British business really expect?

For 'File on 4', Morland Sanders investigates.
Producer Ian Muir-Cochrane.