Small Business Banking Steady in September
According to figures just released by the BBA (British Banking Association) small business lending continues to be relatively healthy.
According to their latest report Small Business Support – September figures
There are an estimated 540,000 term loans (out of some 3.9 million small business banking relationships) which have a total outstanding value of over £45.3bn.
The BBA’s statistics director, David Dooks, speaking about the latest data, said:
“September’s gross lending of £564m was on a par with September 2009 and reflected more than 10,000 new small business loans being granted in the month. However, the primary banking relationship for small businesses remains focused around operating current and savings accounts, where some 50,000 new relationships are established each month and where credit balances across the sector exceed the total level of borrowing.”
Comparing the trend for small business lending in the previous 12 months it does appear that lending to SMEs may be stabilising, although, with just one month’s data, all eyes will be on the figures for October 2010.
Does this indicate a healthy direction for small business banking?