The head of an expanding Bradford-based fund which supports small firms turned down by banks is to try to persuade Business Secretary Vince Cable to let it play a part in delivering cash from the Government’s proposed new Business Bank, unveiled this week.

Stephen Waud, chief executive of the £6 million Business Enterprise Fund, which receives up to 1,000 applications a month from new start-ups and companies that have been turned down by banks, will press the case for BEF’s involvement next week.

Mr Cable announced at the Liberal Democrat conference that the Government is to put £1 billion into setting up a bank designed to increase the amount of lending to businesses Mr Waud said: “The big question is what effect the new Business Bank will have on organisations such as BEF. No details of how the new bank will operate have been confirmed yet but we know the money is to be channelled to businesses through third parties.

“I would hope that the Business Secretary will agree that BEF with its success and experience is the sort of organisation which is able to play an active role in delivering funds from the new Business Bank.

“While few details have yet been confirmed, Mr Cable has indicated that delivery of the bank's funds will be through third-party agencies and I believe BEF is well placed to become involved.” Mr Waud will seize his chance to convince the Business Secretary in Birmingham next week where Mr Cable will address the annual conference of the trade body for Community Development Finance Institutions, of which BEF is one.

His move comes as BEF a not-for-profit social enterprise, still awaits the release of funds from the Government which it was promised last year. The extra £6 million from the Regional Growth Fund would double BEF’s pot and give it the scale to attract extra funds from private sources as it faces the highest level of demand for funding from small firms in its eight-year history.

Mr Waud hopes the extra funds will be finalised soon but described the process as “like platting fog”.

Earlier this year BEF recruited three former bankers to boost its team and is also planning to expand into bigger offices in Little Germany.

BEF is also piloting a postcode targeted referral scheme it has developed in association with the British Bankers Association. It aims to get banks to adopt the scheme designed to help the 5,000 businesses a month that are turned down by banks.

Ultimately, the scheme could see monthly applications for cash from BEF soar from 60 to 1,000 a month. Since its launch BEF has loaned £8 million to 350 businesses in West and North Yorkshire.