Business banking support for small enterprises is growing, the British Bankers' Association (BBA) suggests.
Commenting on the association's latest figures, its chief executive Ian Mullen says online banking by small business owners has seen growth over the 12 months leading up to September 30th 2005.
BBA figures reveal that just over 40 per cent of small businesses make use of online banking.
Business loans to smaller enterprises had shown an increase of 15 per cent over this one-year period, totalling £32.7 billion.
"The net indebtedness of the sector to banks is in good shape, with deposits virtually matching borrowing," Mr Mullen adds.
Overdraft lending had grown by almost a tenth to £8.9 billion, with deposits rising to £40.3 billion, an increase of eight per cent.
Mr Mullen says that when compared to 15 years ago, term business loans account for the majority of lending.
This enables small businesses to structure their borrowing requirements over a longer period, in particular because around half of these business loans have long maturities, he explains.
Some half a million small businesses opened banking accounts this year, which shows that "new business start-ups continue to seek out banking relationships", Mr Mullen concludes.
Business banking grows, figures show
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