More and more companies are admitting difficulties with financing and the economic wear spreads and truly takes its course.

Companies are finding that they are having to move away from unsecured lending like overdrafts facilities to secured loans.

Corporate advisors have warned that the state of the business is not of any significance as even the healthiest of businesses are likely to struggle to secure or renew finance facilities for the year 2009.

Pippa Wicks of Alix Partners, said: “The subprime crisis spread to prime mortgages, making it harder and more expensive to borrow money to buy a home.”

She continued to relate this idea to the corporate world: “Now we are seeing the same thing happening in the corporate world, as financing problems spread from struggling businesses to healthy ones.”

With unsecured lending options remaining limited finance directors will have to discover new means to support their businesses even if that means dipping into personal cash resources. Stephen Alambritis agrees as he explains that many UK small projects have resulted into ‘dipping into savings from recent healthy profits to compensate for flagging sales’.

Though many banks such as Lloyds TSB are denying such harsh measures on lending options and instead insist that they offer the most suitable option to their clients, complaints about bankers attitudes still accumulate.