Lending to small firms 'up 41 per cent', says borro

Loans to smaller firms are up by 41 per cent this year, according to one finance firm, as businesses look to expand their reach.

Findings from borro show that the average amount leant to small firms has increased from £17,000 to £24,000 this year, while the average loan term is five months.

Furthermore, 60 per cent of the company's total lending goes to small firms, providing good news for start-ups or small businesses in need of funding.

Paul Aitken, chief executive officer and founder of borro, explained that many firms are in need of short-term funds to support an irregular income.

"Securing finance remains one of the biggest challenges faced by the nation's small business owners and entrepreneurs, with many still unable to access finance via traditional means," he added.

It comes after research by the Guardian Small Business Network revealed that only 16 per cent of small firms have witnessed a decline in their operations over the last 12 months.

Posted by Thomas Fletcher

Last updated: 9th November 2012