LENDING by banks to small and medium-sized businesses in the UK rose in February by the largest amount in any month since comparable records began nearly four years ago, official figures have shown.
The Federation of Small Businesses (FSB) in Scotland welcomed this jump in lending, measured on a net basis taking into account repayments. However, it also highlighted a mixed picture behind the headline numbers.
According to the latest Bank of England data, lending to small and medium-sized enterprises (SMEs) in the UK rose by a net £566 million in February, the sharpest monthly rise since records began in May 2011. This followed a £53m rise in January and a £1.24 billion tumble in December.
Colin Borland, head of external affairs for the FSB in Scotland, said: "It is good to see the headline numbers going in the right direction - of course it is. But, just as we weren't getting particularly depressed when the big numbers were going in the wrong direction, we won't get too excited when the figures are going in the right direction because there are tens of thousands or hundreds of thousands of lending decisions behind them."
Mr Borland said that businesses regarded as a "safe bet" had not found it difficult to get hold of finance for some while.
He added: "There are still issues for some people who, in some people's eyes, might not be regarded as quite as sound an investment . [There is] always that difference of opinion."
Howard Archer, chief UK economist at consultancy IHS Global Insight, said: "The increase in bank lending to small companies is particularly encouraging given past concerns that lack of access to capital, at a reasonable price, could hold back their operations and investments."
Overall, lending by banks to non-financial businesses in the UK rose by a net £440m in February. This followed a £1.79bn rise in January and a £3.94bn drop in December.
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