Business lending 'rises in January' - commercial mortgages

06 March 2009

The start of the year saw a rise in the amount of credit being supplied to small businesses, new figures have revealed.

A British Bankers' Association (BBA) report has shown that in January, the level of lending to smaller enterprises by its members increased by £235 million, taking the total up to £54.2 billion.

This reversed the trend that was seen in 2008, the body noted, something that may provide a boost for firms seeking commercial mortgages.

"Banks are working to help all business customers through industry-wide initiatives like the Statement of Principles, which, since its publication in January, has been selling at around 300,000 copies a week," the BBA stated.

It added that its members have been assisting firms by providing workshops, advice lines and seminars in order to offer tips on financial topics.

In related news, Lloyds TSB has revealed that it will pass on yesterday's Bank of England base rate cut in full to small business customers.