Net lending to businesses fell by £3 billion in April 2013, the third consecutive monthly drop, according to the latest figures from the Bank of England. After a £1.7 billion rise in January, falls of £2 billion, £545 million and now £3 billion have all been driven by falling net loan amounts. Read More
After a £1.7 billion rise in January, falls of £2 billion, £545 million and now £3 billion have all been driven by falling net loan amounts.
Overdrafts have added to the trend in February and April, although in March, net balances on overdrafts actually increased by £247 million.
In total, £470 billion is now owed in loans and overdrafts, with £435 billion in loans and a further £35 billion in overdrafts.
Within this figure, 37% of the total is owed by small and medium-sized businesses, while large firms account for the remaining 63%.
Over the past six months, total lending to businesses has now fallen by a monthly average of £1.7 billion, and a total of almost £10 billion.
This reflects the longer-term trend, which has seen a fall of just under £20 billion over the past 12 months, with January 2013 the first month to see a net increase since August 2011.