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Small businesses not affected by credit crunch

18th December 2007 Print
Latest figures (Q3 2007) for the main high street banks providing small business services show that term lending stands at £39.9 billion, having grown nine per cent over the 12 months to September. Overdraft borrowing is £9.0 billion, a fall of one per cent over the year, reflecting a lower reliance on temporary, cash flow finance.

Deposits total £48.8 billion, having increased by eight per cent over the 12 months to September.
Over 585,000 small businesses established new banking relationships in the latest 12 months.
47 per cent of small businesses operate their accounts online.

BBA (British Bankers’ Association) director of statistics, David Dooks, said: “The third quarter data show little, if any, sign of small businesses being affected by the credit crunch at that stage, either from the supply or demand side, as term lending rose by double the average quarterly rise and deposit levels were being maintained.”