Bank lending to small businesses in June was over a third lower than in the previous year, despite the British Bankers’ Association (BBA) claiming that its members were making loans of around £27m to small businesses every day.
More than 11,000 new loans were provided to small businesses in June, for a total value of £598m, according to figures out today. The longer working month meant that the number of loans were around £70m higher than in April and May.
But compared to last year the level of lending has dropped by 31 per cent when loans totalled £867m.
And so far this year the current monthly average for lending to small businesses is around half the amount banks lent two years ago. In 2008 around £991m a month was lent to small businesses, but this has now plummeted to a monthly average of £564m.
David Dooks, BBA statistics director, said: "On a daily average basis, banks are making available around £27mn of new term lending to small businesses each working day. Over the past twelve months, nearly £7bn of new, long-term lending has been provided."
However, these figures were attacked by the Forum for Private Business who called the banks’ strategy of maintaining they were lending "distressing".
A spokesman told Credit Today: "Contrary to what many of the banks have been saying these BBA numbers prove what our members have been saying for so long: that lending has decreased and it is decreasing markedly."
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More than 11,000 new loans were provided to small businesses in June, for a total value of £598m, according to figures out today. The longer working month meant that the number of loans were around £70m higher than in April and May.
But compared to last year the level of lending has dropped by 31 per cent when loans totalled £867m.
And so far this year the current monthly average for lending to small businesses is around half the amount banks lent two years ago. In 2008 around £991m a month was lent to small businesses, but this has now plummeted to a monthly average of £564m.
David Dooks, BBA statistics director, said: "On a daily average basis, banks are making available around £27mn of new term lending to small businesses each working day. Over the past twelve months, nearly £7bn of new, long-term lending has been provided."
However, these figures were attacked by the Forum for Private Business who called the banks’ strategy of maintaining they were lending "distressing".
A spokesman told Credit Today: "Contrary to what many of the banks have been saying these BBA numbers prove what our members have been saying for so long: that lending has decreased and it is decreasing markedly."
More...