Struggling businesses are increasingly turning to pawnbrokers, pledging anything from yachts to diamonds, to solve cash flow problems brought on by the banking crisis.

The National Pawnbrokers Association said business loans were becoming more popular in the industry as smaller companies could no longer rely on credit from the banks to pay suppliers or employees. Jim Tannahill, director of Suttons & Robertsons, the upmarket London pawnbrokers, said: “The number of people coming to us to keep their own little businesses afloat has risen dramatically.”