A growing number of small businesses are using online banking to manage their company’s finances, a major banking body has said. The British Bankers Association (BBA) says that 42% of small businesses now use internet banking. The BBA’s official survey of major banks reveals other interesting details about the operations of small businesses in the UK. Researchers also found that during the latest 12 months, nearly 547,000 small businesses have established new banking relationships. Also, lending to small companies has increase by 10% over the year, bringing the total owed to creditors to £34bn. Overdraft lending is also up by 8% over the year and is now at £9.2bn. Ian Mullen, chief executive of the BBA, said: “With more than half a million new banking relationships being established in the last twelve months and a significant proportion of all businesses now banking online, the banks’ effective support for the small business sector is clear. “While deposit and overdraft growth are both around 8% per annum, the moderation in growth in term lending is noteworthy and suggests that small firms are settling down to a more sustainable level of borrowing.”

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