Nigel Clough believes Sheffield United's plight at the wrong end of League One is putting off new recruits from joining the club.
Clough recently tried to sign Alan Judge on loan, but the Blackburn midfielder opted for leaders Brentford instead and new targets could be reluctant to join the Blades' relegation battle.
"We are continuing to make enquiries ahead of the loan window reopening, but obviously our league position can have a detrimental effect," Clough told the club's official website.
"It happened with Alan Judge, who chose Brentford over us, and given where we are and where they are you can't blame him."
But Clough stressed he was happy with the business he completed during the transfer window and is hoping to extend Liverpool midfielder Conor Coady's
loan spell until the end of the season.
"Conor is a loan we'll look at extending later this month," Clough added.
"Apart from Saturday he has improved with every game and done very well. Obviously we are keen to keep him around, but Liverpool will have the final say on his future.
"We are pleased that we have managed to get (Blackpool defender) Bob (Harris) on a deal until the end of the season and Billy (Paynter) is now just about up to speed in terms of match fitness and sharpness, while Stefan (Scougall) and John (Brayford) have impressed since arriving at the club."