Lending to small businesses rises - Business - News - Moneyfacts


Moneyfacts.co.uk News brings you the latest financial & economic news & reviews of the best products in the UK by our team of money experts.

Lending to small businesses rises

Lending to small businesses rises

Category: Business

Updated: 15/07/2009
First Published: 15/07/2009

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Lending by high street banks to small businesses rose by £153 million in May, according to figures released by the British Banking Association (BBA).

While the rise is down on March and April, when lending to small firms rose by £271 million and £287 million respectively, the figures show that companies are finding the UK's banking institutions more receptive when it comes to lending.

Furthermore, over 45,000 new relationships were established between small businesses and banks during the month, following 48,000 new partnerships in April.

Deposits made by small firms also increased markedly, rising by £250 million.

"The small business sector saw another monthly increase in its borrowing from the high street banks in May, while reduced trading activities and greater control of liquidity were reflected in increased deposits and little-charged overdraft levels," said the BBA's statistics director, David Dooks.

"Through the economic downturn, banks are working to support small businesses and more than 45,000 new banking relationships were opened in May."

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Business Moneyfacts Awards finalists announced

Are you in the field of business finance? Then you’ll be familiar with the Business Moneyfacts Awards, the highlight of the year for the industry, and you’ll also be pleased to hear that the finalists for the 2017 ceremony have just been announced!

Business owners – do you have a cash buffer?

Building up a cash buffer can be a vital part of business management, particularly in uncertain times. It’s therefore little surprise to find that SMEs built up significant cash reserves in the lead up to the referendum.

Business owners – are you missing out on returns?

Running a successful company demands strong organisational skills, business acumen and a keen eye for finances, which is why it’s so surprising that many business owners could be missing out on returns because they don’t know their interest rate.