Lenders continue to reduce 'bilateral' debt facilities, such as overdradts, forex and BACS services, Simon Collins, KPMG head of Corporate, notes, commenting on how the latest developments in the economy are affecting his clients.

'This cash will be a vital lifeline in the first quarter of 2009. Some businesses will feel the pain more acutely, particularly in the retail, leisure and house-building sectors, which have increased working capital requirements after the New Year in the run up to Easter.

'Retailers and house-builders, for example, build up stock in the run up to spring. This will have wider repercussions for the suppliers into these sectors as well meaning the reduction of these facilities now could have far-reaching consequences next quarter.

'The inability to access bilateral loans could be the tipping point for many businesses as they brace themselves for the harsh trading of January and February next year.'