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The amount being lent to small business has increased over the first three months of 2009, offering a glimmer of hope to the self employed and small business owner.

According to the British Bankers Association, the level of high street banks' lending to small businesses rose by £271m in March. That's help to hundreds of business that need more mortgages, loans and overdrafts to keep their business running in the downturn.

The BBA says businesses are saving more too: deposits by small businesses increased by £881m and there were over 52,000 new small businesses banking relationships established in the month. This is crucial – if you are a small business owner or are self employed then you need to be saving as much as you can. The more you save, the better chance you have of securing finance when you need it most.

David Dooks, BBA statistics director, says: "The stock of lending to small businesses is around 5% higher than a year ago and has risen in each of the first three months of 2009, reflecting general banking support and individual bank pledges to make finance available.

"March also saw an upturn in the number of new small business relationships, bringing the total in the first quarter up to a figure similar to the first quarter of 2008, despite the more difficult current trading environment."

It will remain tough for businesses throughout 2009, there is no doubt about that. And the banks could be lending more – but there is still finance out there are still opportunities for your business or venture to get financial help.

Talk to a financial adviser about the options open to you. You may find that you need just a tiny, tiny fraction of that £271m increase to keep your business thriving.

SOURCE: BBA, 01/05/09

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