Banks demonstrate support for small businesses

First quarter figures show a steady level of financial support for small businesses and a growing use of online banking, the BBA reveals today.

Term lending stands at £37.8bn, having grown 8% over the year.

Overdraft borrowing totals £8.8bn. This level fell over the year by 5%, reflecting the lower need for temporary, cash flow finance.

Deposits total £45.8bn, an increase of 10% over the year.

During the last twelve months, over 589,000 small businesses have established new banking relationships.

46% of small businesses operate their accounts online.

Commenting on the latest figures, BBA director of statistics, David Dooks, said: " Small businesses are a healthy sector of the economy, with annual growth in their deposits and borrowing exceeding GDP growth. More than 2,000 firms establish new banking arrangements every working day and nearly half of all small businesses now use online services to manage their financial affairs."