Since that time, the banks under consideration along with the Government have been pressurized by financial experts and various political parties for not taking necessary measures to enable small businesses to obtain the loans they need in order to retain and expand their business.

Despite this fact, the recent findings from the British Banking Association (BBA) have indicated growth of the amount of small business loans and overdrafts obtained by companies in January, following a peculiarly low figure for the last month of 2009.

Over the course of December, about £511 millions in the form of loans and overdrafts were given to small businesses by the banks. However, in the first month of 2010 this figure had soared to £534 million, going hand in hand with a decrease in the level of savings in business accounts.

David Dooks from the BBA told that in the beginning of 2010 the value of new lending still exceeded £500 million a month. Lending to this specific part of the business sector has increased by 2% over 2009, although during the winter months the normal lower demand for bank finance and comparisons with the same period a year ago demonstrated less active lending levels. As for trading conditions for small businesses, they remain strict, but after December’s reduced number of new relationships, it is heartening to see small businesses registering new bank accounts in almost the same numbers as during preceding months.


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The cultural transformations that have made people accept life in debt have had a direct impact on the approach youngsters take to money matters, which could lead to negative consequences in the long run as many of the next generation would resort to IVAs to cope with serious financial issues.

When we put efforts into our work and get paid for this, we get an amazing feeling of satisfaction. Our hard hard work seems to have been remunerated financially. We go shopping and buy the items we need and the items we simply want.