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Banks' support for small business increases
10/05/2007
Money lending support from banks for small businesses in the UK has increased by around eight per cent over the course of the last 12 months, the British Bankers' Association (BBA) has revealed.
Highlighting the importance of the banking sector to small firms around the country, the BBA notes that term lending for such companies amounted to £37.2 billion over the course of the last year.
Furthermore, BBA figures demonstrate that around 590,000 small businesses in the UK established a new banking relationship during this time, while close to 45 per cent of all companies in this size bracket now do their banking via the internet.
BBA director of statistics David Dooks remarked: "In 2006, the liquidity of the three million firms in the small business sector was particularly strong, as their deposits grew and their use of overdraft borrowing reduced marginally.
"At the same time, small firms' structured term borrowing to fund investment showed healthy growth."
Highlighting the importance of the banking sector to small firms around the country, the BBA notes that term lending for such companies amounted to £37.2 billion over the course of the last year.
Furthermore, BBA figures demonstrate that around 590,000 small businesses in the UK established a new banking relationship during this time, while close to 45 per cent of all companies in this size bracket now do their banking via the internet.
BBA director of statistics David Dooks remarked: "In 2006, the liquidity of the three million firms in the small business sector was particularly strong, as their deposits grew and their use of overdraft borrowing reduced marginally.
"At the same time, small firms' structured term borrowing to fund investment showed healthy growth."