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Business loan popularity soars
Reported on Thu, 13 Apr 2006
The number of small and medium-sized enterprises (SMEs) taking out business loans has continued to increase over the last 12 months, claims a new survey.
Research by the British Bankers' Association (BBA) found that in total, £83.4 billion worth of business loans was taken out in 2005.
Of this total amount, £33.3 billion was term lending, £8.8 billion overdraft lending and £41.3 billion in the form of deposits.
Overall, more than 515,000 small businesses took out business loans, with two-fifths finding the best business loans on the internet.
Sally Scutt, deputy chief executive of the BBA, explained that business loan providers had demonstrated their "commitment to providing services and appropriate finance for small businesses".
A business loan could allow an SME to make significant investments in new areas to boost business potential.
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