Alliance and Leicester increases small business lending

Date: 27th February 2009

Alliance and Leicester has increased the amount it lends to small businesses, the bank has claimed.

The lender disclosed that it has raised its small business balances by a quarter since the start of this year in a move which could remove some financial pressure from the sector.

This comes in addition to the 49 per cent Alliance and Leicester said it increased lending to sole traders, partnerships and small limited companies by in 2008.

Managing director of corporate and commercial banking at Alliance and Leicester, Steve Pateman, said: "In the current economic climate, cashflow is the key to business survival and we are committed to increase lending balances further in 2009.

"I would urge businesses to review their banking needs as a matter of priority to make sure they are getting value for money and a service that reflects their needs."

The department for business recently defended its Enterprise Finance Guarantee, which it claimed has helped firms secure more than £40 million in loans over the past five weeks.