A new directory of around one thousand sources of commercial finance for small businesses has been unveiled.

It is designed to help businesses find alternatives to conventional bank loans or overdrafts when these may be hard to obtain.

The directory covers leasing and hire purchase, commercial mortgages, asset-based finance and invoice discounting and factoring.

The directory was developed by the Finance and Leasing Association (FLA) and the National Association of Commercial Finance Brokers (NACFB) with the support of the Asset Based Finance Association (ABFA). It aims to help around 60,000 businesses to find suitable commercial finance in its first year.

It includes a search facility based on the region, town or postcode of local sources of finance and brokers.

Lord Sassoon, commercial secretary to the Treasury, said: “The government recognises that small businesses are the lifeblood of our economy. That is why we are providing support to small businesses to ensure that they can access affordable finance to invest and grow. I am delighted to help launch the Small Business Finance Directory