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Lending to British businesses has rocketed over February, proving that the promises of the banks to lend more to small businesspeople and the self employed might just start to be growing to fruition.

The latest BBA statistics show that the high street banks' lending to small businesses increased by £211m in February, similar to the rise recorded in January. There was little change in deposits, while over 44,000 new small businesses banking relationships were established.

David Dooks, BBA statistics director, says: "Lending to the 3.8 million small businesses supported by the main high street banks rose again in February and significant numbers of new small business relationships continue to be established, despite the current recession and regular reports of difficult business conditions. Deposit balances are little changed, reflecting the slow trading environment many businesses are facing."

You may have had months of despair where you simply could not get finance for your business. Overdrafts were reduced, loans were turned down and business mortgages became impossible to get hold of.

But these statistics might be the first 'green shoots' for business lending. It will not solve the recession, but at least it is a start for all those self employed and small business people looking to get their business back on track.

If you want to be one of these people to benefit from the Government's promises that the high street banks will lend to business, your firsts top should always be a financial adviser. An adviser will be able to find you the best finances: the best loans, the best mortgages and the best credit lines.

SOURCE: BBA, 03/04/09

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