by business editor Trevor Sturgess

With the Bank of England expected to hold the base rate at 0.5 per cent today, there are signs that the credit crunch is easing.

According to a survey by the CBI, the employers’ organisation, access to finance remains a serious problem for businesses, but the rate of deterioration in credit conditions has slowed. It expects conditions to stabilise over the next few months.

The CBI's latest Access to Finance Survey found that businesses were less negative than they were in March about the supply of new and existing credit.

CBI South East regional director Malcolm Hyde, based in Sevenoaks, said: "Credit availability is still a concern, but the severity of the situation is easing compared with a few months ago.

"Big companies who were encountering serious problems getting credit at the start of the year are still finding it difficult, but they expect that the supply of existing credit will get slightly easier over the next few months."

However, while credit supply in terms of bank loans and overdrafts has become a little easier, trade credit insurance remains a significant problem.

This type of insurance guarantees that a supplier with be paid, but a number of leading insurers have imposed much tougher rules, and in some cases refused insurance altogether.

This action has sparked protests from a number of businesses, including retailers who feel their reputation has been tarnished by decisions they claim are without justification.

Despite a Budget announcement on the issue by Chancellor of the Exchequer Alistair Darling, firms affected do not think it went far enough.

Mr Hyde added: "While the government has made some welcome moves to improve the availability of trade credit insurance, it remains a very live issue for many businesses, and more could be done to ease the pain.

"A backdated implementation date would be beneficial, as would some assurance that the government’s scheme will not come to an abrupt end in October."