The Forum of Private Business (FPB) is urging business owners who feel they have been unfairly denied bank lending to put a new appeals process to the test.
The British Bankers' Association announced the creation of the new process this week.
The initiative will allow smaller companies to request a second opinion if they believe formal loan applications have been declined unfairly by one of the UK's main banks.
The appeals system came about following a report from the industry-led Business Finance Taskforce last year, which acknowledged the credit shortages facing small and medium-sized enterprises.
It will mean that, if a business customer requests it, their loan refusal will be reviewed by a second individual at their bank who has not had any prior involvement in the process and a new decision will be made within 30 days.
If the loan application is still declined, the bank will provide information on alternative sources of funding.
FPB chief executive Phil Orford says, ' Finally, the major banks will be expected to spell out the standards British businesses can expect from them, and the Better Business Finance campaign will provide online support and an appeals process if lenders are deemed to fall short of these standards.
' While it is always important to closely monitor any codes of practice - particularly those that are self-regulatory - providing banks stick to these principles, and there is to truly robust and transparent appeals process, we welcome the initiative's much-needed aim of getting the banks to provide better, more affordable lending. "
Simon Streat, managing director for EMS, UK & Ireland at credit information group Experian adds, 'Today's measures bring positive news for the small business community. Creating loan mentors for small businesses could help these firms navigate the challenges they face when applying for funding.'
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