THERE HAS been a substantial increase in the number of businesses in Northern Ireland that have been refused loans or overdrafts by their banks, according to a new survey.

Figures show the percentage of small to medium-sized firms who were successful when applying for a bank loan fell from 92 per cent in 2007 to 65 per cent last year.

The survey, which examined business access to finance in Northern Ireland, found companies that operated in the construction sector were among the most likely to be refused bank finance.

In the last three years the chances of construction-related firms obtaining a bank loan fell from 91 per cent to 54 per cent.

The latest research shows that the majority of local small- to medium-sized businesses still traditionally turn to banks when seeking loan finance.