Business Secretary Vince Cable has launched a £70 million scheme aimed at boosting lending to small firms.
Dr Cable was the keynote speaker at the Federation of Small Businesses' (FSB) national conference at Curve theatre yesterday.
He said the best way for firms to secure more funding from banks was to increase competition in the finance sector.
Speaking to more than 500 business people, Dr Cable said: "We've got to break the cartel of big banks. They are too big, which is why they treat you like dirt."
Under the new scheme, three new lenders – Market Invoice, Urica and Beechbrook Capital – will share more than £30 million of Government funding.
Each lender has committed to attracting additional funding from private sector investors, with the total expected to boost the amount available to £70 million.
Speaking at the conference later in the day, Shadow Business Secretary Chuka Umunna said a Labour government would stimulate the economy by cutting VAT and setting up a small business agency aimed at ensuring the Government did all it could to help small firms.
He warned against reducing employment laws, saying it would lead to workers feeling less secure in their jobs.
