Despite the daily media coverage of the "credit crunch", new data suggests that the major high street banks are still lending to small businesses. In fact, term lending actually grew by 11% in the year to June 2008.
The statistics, released by the British Banking Association, compiled using data from the major high street banks showed that term lending grew to £44bn in the twelve months to June this year. Overdraft borrowing also increased to £9.2bn (a rise of 3% on the previous period).
Interestingly, the number of new businesses opening their first business account compared well to the previous 12 months with 143,404 new business accounts being opened, compared to 145,063 in the year to June 2008.
Read more on this good news at Banks still lending to small businesses despite "crunch".