Lending to small businesses rises again

Category: Business
Date: 6/9/2009

Lending by high street banks to small businesses rose by £287 million in April, which was up compared with the £271 million rise in March.

Figures from the British Banking Association (BBA) are further encouragement that companies are finding it slightly easier to access credit from the UK's financial institutions.

The number of new relationships established between small businesses and banks also recorded a significant rise in April, increasing by 48,000. Deposits made by firms rose by £119 million.

"The high street bank's support for the small business sector continues to rise," said David Dooks, BBA statistics director.

"The net increase of £287 million in April's lending was consistent with the trend in recent months and the number of new banking relationships shows the start-up rate is holding up, despite the economic environment.

"Business liquidity improved as deposits saw another monthly rise, above the increase in overdraft balances."