Insurance News Archive

Employers insurance: Lending to small firms rises £391m in June

Written by Michael Brown

Lending to small businesses rose by £391 million in June, with almost 50,000 new banking relationships established between financiers and firms, according to the latest figures.

In news which may interest those with employers insurance cover, David Dooks, statistics director at the British Bankers Association (BAA), said the organisation's figures provided evidence that the high street banks are supporting small businesses.

"Structured term lending rose by £366 million in June, while deposits and numbers of new business relationships continued to hold up, perhaps reflecting improved business confidence in trading conditions," he commented.

The figures were released ahead of a meeting between the BBA and Alistair Darling, in which the chancellor is expected to call on banks to do more for small businesses.

According to the BBA, the rise in lending was up on May's £133 million increase, demonstrating banks' efforts to help those with employers insurance cover.

Last week, the Federation of Small Businesses urged the health secretary to soften the affects of the swine flu pandemic by simplifying the system by which firms are reimbursed after granting statutory sick pay.

27 Jul 2009