Borrowing a focus as businesses look to expand

Date: 15th October 2009

Smaller businesses are feeling more confident now than they did before, according to Santander Corporate Banking.

According to a poll conducted by the firm, around 75 per cent of all businesses feel positive about their prospects over the next six months.

Moreover, those with an annual turnover of between £1 million and £5 million were found to be the most likely to want to borrow.

Just over one in ten (12 per cent) of this group said that they needed extra bank funding in order to pay for corporate expansion.

More generally, 15 per cent of businesses polled said that they planned to increase their overall borrowing over the next six months.

Steve Pateman, head of Santander Corporate Banking, said: "The economic downturn has focused minds and businesses have adjusted accordingly.

"It is up to banks to adjust as well and for the role of banking in the UK economy to be redefined."

Earlier this week, the British Chambers of Commerce said that the UK was "on the brink" of returning to economic growth.