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The failure by banks to value reseller property properly is having an impact on the amount they loan using buildings as security.
The property market has taken a tumble during the recession and stalled in the potential recovery with valuations not rising anywhere near the speed with which they dropped and there have been issues getting a fair valuation on commercial property according to the Forum of Private Business.
The fallout of these problems are that small channel firms are being denied loans or charged high interest rates because their property is not seen as sufficient security.
Andrew Bacon, from LeaseholdersUnited, who is the FPB advisor on property issues, said that there was a lack of transparency on the commercial side of the market.
""This has left many valuers with inadequate market data that, given economic conditions, will make them more pessimistic resulting in lower valuations on commercial properties. This means many banks will subsequently have a limited appetite and ability to lend to businesses," he said.
The FPB recently surveyed its members revealing that they expected to pay double the interest rate on unsecured loans pushing the bank loan rate into double figures.