Small businesses point towards brighter future

Date: 18th June 2009

The total amount borrowed by small businesses from high street banks increased to £287 million from March to April this year, according to figures from the British Bankers Association (BBA).

It was also revealed that over 48,000 new relationships were established between small businesses and banks.

David Dooks, BBA statistics director, said: "The high street banks' support for the small business sector continues to rise. The net increase of £287 million in April's lending was consistent with the trend in recent months.

"The number of new banking relationships shows that the start-up rate is holding up, despite the economic environment. Business liquidity improved as deposits saw another monthly rise, above the increase in overdraft balances."

Continued opening of new accounts by new small businesses could be seen as an indicator of rising confidence and economic improvement.

The number of small businesses establishing new relationships with high street banks at the end of 2008 was 35,645.