Pierre Williams from the Federation of Small Businesses told ITV News that if the Funding for Lending Scheme fails, the Government will have to "look carefully" at whether high street banks are the 'right conduit'.
The £80 billion scheme will give money to banks on the basis that they provide cheaper loans to kick-start lending.
More top news
The department store chain said nearly 400 jobs would be lost as it grapples with the pressures facing the retail sector.
Consumer prices have rocketed by 58% since 2003, with the UK industry paying the biggest bills in Europe.
Friday will be a much calmer day for many, with the weather set to remain dryer with sunny periods and much lighter winds than on Thursday.