Banks do well for small businesses

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According to the British Bankers Association (BBA), nearly half (42.5 per cent) of British businesses now bank online.

The survey of small business banking found that nearly 547,000 small businesses have "established new banking relationships" over the last 12 months.

The BBA concluded that the level of support for small businesses from banks must be good and lending policy is also improving.

"With more than half a million new banking relationships being established in the last 12 months and a significant proportion of all businesses now banking online, the banks effective support for the small business sector is clear," said BBAs chief executive Ian Mullen.

"While deposit and overdraft growth are both around eight per cent per annum, the moderation in growth in term lending is noteworthy and suggests that small firms are settling down to a more sustainable level of borrowing," he added.

Small businesses, which were defined as those with a less than £1 million turnover, currently hold 4,632,000 current and deposit accounts nationwide, according to the research.

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