Small business lending up £211m

Date: 6th April 2009

Lending to small businesses rose by more than £210 million during February, the latest statistics show.

Figures published by the British Bankers' Association (BBA) have revealed that small companies, such as sole traders and partnerships, borrowed more than £54 billion over the course of the month, while depositing increased to over £52.7 billion.

Despite this, the number of new relationships formed between bank and business managers dwindled to slightly less than 45,000.

Statistics director at the BBA, David Dooks, commented: "Lending to the 3.8 million small businesses supported by the main high street banks rose again in February and significant numbers of new small business relationships continued to be established."

Mr Dooks added that this was despite the current economic climate and consistent reports of "difficult business conditions".

Recent research by the website smallbusiness.co.uk found that almost a third of smaller companies would rather fund themselves than turn to bank loans in present market conditions.