Supply and demand for lending still in decline Demand for credit from small businesses is still declining, Western Union's International Trade Monitor reveals, while at the same time the success rate of those who do apply for it is also falling. Just 22pc of UK businesses said they had applied for lending in the current quarter, down from 27pc in the first three months of 2012. The success rate of those that did apply stands at 69pc, down from 80pc in the previous quarter. Even those who are successful in securing finance are finding it markedly more difficult to secure - a third of those who were offered credit said the process was difficult, up from just 6pc. Neil Graham, UK managing director of Western Union Business Solutions, said the persistent lack of credit for small businesses "remains a fierce challenge" as "working capital continues to evaporate." Business owners appeared to have little faith in the Government's ability to address the bleak outlook for credit availability. Some 80pc of companies said there had been "no improvement" in their ability to access credit over the past year and, of the 52pc of respondents who have heard of the Government's National Loan Guarantee Scheme - an attempt to reduce borrowing costs for small companies by allowing banks to access Government guarantees - more than three quarters said it will make them no more likely to secure finance. Mr Graham added that the company's clients are reporting that finance issues are being "exacerbated" by fears over the future of the eurozone and questions over whether they should be preparing for a Greek exit from the single currency. The uncertainty is fuelling fear and making a bad situation worse. Fewer companies are using personal savings to manage cash flow - an increasingly common source of working capital for entrepreneurs following the financial crisis - and are beginning to turn to asset-based finance instead, Western Union added. Between December 2008 and December last year, the stock of bank lending to companies shrank by £151bn, according to the Bank of England.