Wealthy entrepreneurs are finding a new way of investing their money, by helping fund smaller companies that are suffering because of banks’ reluctance to lend cash.

Companies are willing to offer investors returns as high as 15%, because they are unable to rely on bank support, according to advisers. Entrepreneurs such as Sir Richard Branson and Jonathan Rowland have set up banks. Advisers are creating new financing mechanisms in the hope that a small cap bond market will take off.