Philip Hellawell, a former Lloyds TSB bank manager, owns Connect Business Financein Ripponden, which was set up 13 years ago.

He is secretary of Calderdale Business Trust and a former governor of Calderdale College, director of The Shay Stadium Trust and president of Halifax Harriers. He was appointed as chairman for two years, following an election of directors at its annual meeting at the Celtic Manor Resort.

Adam Tyler, chief executive, said: "I have worked with Philip as the association's finance director for the last few years and am delighted the board has decided to appoint him as chairman.

"The NACFB is facing its most challenging year ever as the impact from the initial credit crunch, and now the impending recession, has hit commercial finance brokers hard.

"It has never been so important for the association to have a strong board to help and guide its members during this very difficult period."

Mr Hellawell said: "I am under no illusions that this will be a tough time but I am determined we will get through and it is my aim to hand the association over in good shape at the end of my term."

The NACFB is a trade body representing and supporting commercial finance brokers.

Members work with various lenders and funders to finance the UK's small to medium-sized businesses.

An increasing number of businesses are using brokers to shop around for finance as it gets harder to get it from their own banks.