Only a third of Britain's small businesses have turned to their banks for financing in the past quarter, the lowest level on record, according to data published in The Telegraph. Despite the Government's repeated efforts to boost bank lending for firms, the latest SME Finance Monitor found that 33 per cent of small firms reported using external finance, which includes banks loans, overdrafts and credit cards in the first quarter. Instead 27 per cent said they regularly use trade credit while 30 per cent said they had used personal funds.
BDRC, the consultants behind the survey since 2010, said it was the lowest level for 12 quarters. Phil Orford, chief executive of the Forum of Private Business, said the figures "showed a clear reversal in the number of businesses looking to the banks and other external sources moving forward".
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