Wednesday 22 January 2014 8:38 pm

Small firms told to borrow more to grow

BANKS are back on the front foot this morning with a new campaign aimed at encouraging small firms to grow.After years of being told they are not lending freely enough, banks are now arguing small firms need to be more confident in applying for credit.The British Bankers’ Association’s (BBA) campaign argues 270,000 businesses could get a boost if only they applied for funding.Its research has found 37 per cent of firms considering applying think they will be successful – in fact, the BBA said, 67 per cent will get a loan.And its plan should receive a boost as recent Bank of England figures show loans to small firms are on the up at last.It is thought the Treasury was involved in encouraging the campaign in the hope that it will encourage small firms to borrow, and give them confidence that the financial crisis is over.