Banks are increasing their lending to small companies

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THE banks are open for business, according to a city insolvency expert.

Julie Palmer, of Begbies Traynor, says that while the banks are being more cautious, the figures speak for themselves.

In the second quarter of the year the main banks lent around £53 billion to UK businesses, including £20.5bn to small and medium firms, which was, a 22 per cent increase on the first quarter.

She added: ‘It is now critically important that if you want to start a business or apply for further funding a carefully prepared business plan with forecasts is presented to the bank.

‘While this may put off many would-be entrepreneurs, it should not as business planning is the key to financial success.’