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Lending to small businesses rises

Lending to small businesses rises

Category: Business

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

MONEYFACTS ARCHIVE
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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."

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