The credit crunch is starting to restrict the flow of finance to small firms and has prompted Skipton building Society to offer a £25m emergency loan fund. Daily Telegraph

Skipton Business Finance, a division of the mutual building society, believes that the crunch in the wholesale money markets is filtering down to the broader business banking market, and businesses are beginning to delay investment decisions because of the uncertainty over the cost.

In an effort to restore confidence, Tony Walker, SBF’s managing director, has created a £25m credit line to supply working capital to new business customers that are based in the north of England and which have sales of up to £2m to tap.