Banks up lending to small firms

Date: 5th March 2009

Britain's banks have increased lending to small firms by more than £235 million, statistics have shown.

The latest British Bankers' Association (BBA) data reveals that January saw £54.2 billion in loans awarded to the sector, following the introduction of the government's securitisation scheme.

While the figures are promising, some businesses - including limited companies - may still have trouble accessing lending, which an accountant could provide invaluable advice on.

Director of statistics at the BBA, David Dooks, suggested that firms were becoming more resourceful when it came to funding

He commented: "The many small businesses that don't borrow are drawing on cash reserves to fund current cashflow needs, such as January's tax payments.

Despite the recession, Mr Dooks added, many entrepreneurs were still setting up business start-ups, which was a positive sign for the economy.

An investigation by Nectar Business earlier this month revealed that 40 per cent of adults aged under 35 years old had aspirations to become a sole trader.