News

SME deposits up 8%

Posted at December 15, 2015 | Categories : News

New figures from the British Bankers’ Association (BBA) show that the majority of SMEs who approach their bank for finance were successful in the third quarter of 2015.  However, cash holdings continued to grow reducing the need for bank finance – deposit levels grew by 8% annually and substantially exceed SME borrowing, by more than £60 billion.

Borrowing facilities at the end of September stood at £108.8 billion, of which structured-term loans were £88 billion (81%), overdraft use £10 billion (9%) and facilities available but undrawn £11billion (10%). Overdraft facilities were 53% utilised, leaving 47% of agreed borrowing commitments available as “headroom funding” for businesses.

During Q3, there were £1.7 billion of new loans for smaller businesses and £5.2 billion for medium-sized businesses.