Small business lending up - commercial mortgages

24 November 2008

Small business lending has risen, new figures have shown.

Figures from the British Bankers' Association (BBA) showed that total lending grew by ten per cent in the year to September to £44.8 billion, a figure that may include a number of commercial mortgages.

The BBA said growth in the third quarter was slightly down on the second quarter and also on the corresponding period in 2007.

However, it also noted that 538,000 new banking relationships have been established.

Commenting on the data, BBA director of statistics David Dooks said: "A rise in lending in the third quarter, consistent with growth in the previous quarter and the corresponding quarter of 2007 shows banks continuing to make finance available."

Earlier this month, the BBA made ten promises to help business customers negotiate their way through the recession, following a meeting with business secretary Lord Mandelson.

BBA chief executive Angela Knight said the body's members wanted to see their business customers doing well even in "testing times".