Better-than-expected first-quarter export and manufacturing figures, coupled with recent stock market rallies, have helped improve business sentiment, they say.

'Global markets have been rallying on the back of 'green shoots' that are sprouting,' said Mr Samuel Tsien, global head of OCBC global corporate bank. 'With positive signs of recovery gradually appearing, confidence is slowly flowing back to the businesses and we are seeing a moderate increase in borrowing demand.'

Small- and medium-sized enterprises (SME) - hit hard by the credit crunch at the onset of the crisis - are beginning to be more upbeat, says Standard Chartered Bank (StanChart).

General manager of SME banking at StanChart, Ms Kavita Bedi, says she sees 'equitable pockets of opportunities and business prospects' among smaller firms. 'Confidence among our SME customers is slowly being restored and the business climate is gradually picking up,' she added.

Citi Global Commercial Bank director Nick Seah says the positive stress test results from the United States' financial sector could have turned market sentiment.

'We see more optimism in equity markets across the world reflected in the positive attitude towards lending, as compared to three months ago,' he said.

Generally, lenders say they are more open to companies that show stability and good cash flow. But, Mr Seah explains, cash buffers built up during the good years will help some sectors survive the current recession better.

'Some of the key industries (that are better positioned) include power and energy-related companies, as well as telecoms,' he added.

Despite a 'steady increase' in applications for government-backed loans, United Overseas Bank says the bulk of loan applications in recent months have been for the refinancing of maturing loans.

DBS Bank offered a different take on the refinancing of existing loans.

Read the full story in Tuesday's edition of The Straits Times.