James Moore: Pawnbrokers prove the banks are telling porkies

Outlook One factor that is still proving hugely damaging to Britain's growth prospects is the continuing credit squeeze. Yesterday's deal over Greece is good news for UK banks because the wholesale funding markets should become a little looser than they have been.

Whether they will use this opportunity to lend any of what they are able to raise is more doubtful.

Net lending fell last year and the Bank of England has repeatedly warned the economy will continue to stagnate if businesses can't satisfy a legitimate need for credit.

The banks' stock response is to claim they've put the money up but businesses are more interested in repaying loans than taking out more.

This is flatly contradicted by the small business lobby. It is also flatly contradicted by a rising tide of evidence, the latest piece of which was provided yesterday by the pawnbroker Albemarle & Bond.

Albemarle's shops – and those of its rival H&T – keep popping up like a pox. And it has just produced another barnstorming set of results.

The alarming growth in small, short-term loans at ruinous rates has been well documented. Less well known is the fact Albemarle now says it is seeing increasing demand from small businesses.

That's worth remembering the next time a bank boss cries crocodile tears at the unwillingness of small businesses to play with them.