Business borrowing from banks drops £600m
Bank borrowing by non-financial companies fell by almost £600m in April, according to new figures from the British Bankers’ Association (BBA).
The decline was largely driven by a £699m drop in net borrowing by public admin and defence companies, as well as a £463m fall in lending to wholesale trade businesses.
Borrowing by construction businesses also fell by £139m, while bank lending to mining and quarrying companies also witnessed a drop of £38m.
“While it’s disappointing to see a drop in borrowing by non-financial firms – including small businesses – there is some cause for optimism,” said Mike Cherry, national chairman of the Federation of Small Businesses.
“A record number of small firms report successful credit applications in our latest Small Business Index.
“The proportion of businesses that are positive about the availability and affordability of credit are at some of the highest levels we’ve seen in the last five years.”
The annual growth rate of 2.9% in April was also than lower than March, but higher than in recent months.
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