New figures released by the banking industry show that the number of new business bank accounts opened in March and April were significantly higher than in 2008, pointing towards more evidence that an economic recovery could be underway.
New business accounts, lending, deposits – all up
The data, provided by the British Bankers Association (BBA), shows that over 48,000 new banking relationships were formed during April 2009, following even better figures in March when 53,000 were formed.
These figures represent a significant rise on the monthly average figure for 2008 of 43,700.
Lending to small companies by the high street banks represented by the BBA rose by £287m in April. Deposits by small companies rose by £119m during the same period.
David Dooks, BBA statistics director, commented on the figures;
“The net increase of £287m in April’s lending was consistent with the trend in recent months and the number of new banking relationships shows that the startup rate is holding up, despite the economic environment. Business liquidity improved as deposits saw another monthly rise, above the increase in overdraft balances”
Better times ahead for business lending?
Hopefully, this news will mark the beginning of a more healthy period in the business banking world.
Over the past 2 years, more and more small companies have witnessed a rise in late payment problems, and simultaneously have found it harder than ever to access the credit they require to weather the economic downturn.