Businesses are borrowing less and saving more, the latest statistics from the British Bankers’ Association (BBA) have revealed.
The figures, which show the average monthly borrowing and deposit figures for small businesses, show that average new lending by small businesses has fallen slightly between 2010 and 2011 to £506 million.
Meanwhile, the average amount deposited each month has increased between 2010 and 2011, from £288 million to £473 million a month.
Commenting, statistics director at BBA David Dooks said: “This reflects the appetite of small businesses to pay down their borrowings and, in an uncertain environment, with trading confidence fragile, build up cash reserves.”
According to the BBA, the increase in deposits is significantly higher than any year since the financial crisis – amounting to a record level of £58 billion.