MANUFACTURERS’ organisation the EEF has called for better access to finance and improved lending rates.

North West director David Ost says that, apart from issues of onerous red tape, raising finance is still the biggest concern among his members.

He said: “Manufacturers in Merseyside have come out of the recession leaner and looking for new markets.

“But bank borrowing is still extremely difficult.

“Since the end of 2008, EEF’s quarterly survey has shown the cost of credit getting worse, not better, for manufacturers. Only in the past quarter did we see the availability of finance improve.

“But there are areas where it is vital we see change. First, we need to see the availability of finance, on reasonable terms, improve.”

And he called for transparency on new management fees, how banks are enforcing loan covenants, and also tightening the application of terms and conditions.

However, the new head of Barclays Business for the North West insists small firms with credible business plans are likely to succeed in finance applications.

Martin Baker, who oversees Scotland, Northern Ireland, North Wales and the north west of England, said: “The days of ‘computer says no’ is well behind Barclays and other organisations.”

He said Barclays has seen a 12% increase in start-ups over the past year, but 80% of small firms approaching the bank are likely to have their funding requirements approved, which is in line with pre-recession levels.

And he said Barclays met its commitment to Merlin – the Government’s target for bank loans to small firms – in the first half and is on track to meet second-half targets.

“Of £20bn in loans, £7bn of that was to small firms,” he said.

Since taking on his role at the end of the first quarter, Mr Baker has increased staffing among his North West business relationship managers by 5%, to 21. He added: I want to make sure we have the right people for the right locations.

“It’s not just about looking at your balance sheet. It is important our customers feel decisions are made locally by someone who understands them.”

And he said he was keen to improve access to finance and banking services by working with other organisations.

“The North West economy in the first quarter grew faster than the national average, and Merseyside is a very quickly expanding part of the country,” he said.

“There is still a lot of funding available to businesses through various organisations, rather than lending.

“We are working with Local Enterprise Partnerships (LEPs) to see how we can work with them.”