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Further boost in business loan popularity
Reported on Mon, 20 Feb 2006
The affinity between small and medium sized enterprises (SMEs) and business loans shows no sign of abating, with the latest survey revealing further rises in business loan lending.
Research by the Major British Banking Groups found that UK business loan lending in January amounted to £1,163 billion, an increase of £14.8 billion.
In comparison, business loan lending increased by £10.2 billion during the last two months, and the average increase for the last six months stands at £9.4 billion.
Similarly, deposits made by SMEs and larger businesses increased by £4.6 billion to £828 billion in the UK.
Lending to real estate companies was found to have increased by £819 million in January compared to the previous month, while lending to construction and chemical companies increased by £344 and £223 million respectively.
Meanwhile the survey revealed that business loan lending to financial firms increased by £5,067 million.
With the popularity of business loans with SMEs seemingly endless, entrepreneurs are advised to take out a business loan to invest in new areas and increase productivity. 