Banks must be force to lend to small businesses, it has been claimed.
It might interest business insurance customers to know that the Liberal Democrats is urging the government to step in and address the situation.
According to the party, viable firms are going bust because they are not able to shore up their cashflow with money obtained from banks.
It called on the government to use its position a majority shareholder in three of the UK's biggest financial institutions to make sure they lend to small firms.
The party also called for a Plan B to be formulated, which would see the government lending directly to businesses.
"The longer-term priority must be to ensure that the banks are put on a stronger footing and regulated in such a way that they can resume prudent lending to small businesses and individuals," the Liberal Democrats said.
Meanwhile, the Forum of Private Business has called for more to be done to make sure that large firms pay their suppliers on time.
