More and more small businesses are using the internet to manage their finances. According to a recent BBA survey, more than two-fifths now use online banking – more than twice as many as three years ago.
The proportion of small businesses using online banking to manage their business finances continues to increase. That’s the message from the latest annual survey of small-business banking from the British Bankers’ Association (BBA).
By March 2006, 42.5 per cent of small businesses were using online banking, more than double the figure of 20 per cent recorded three years previously.
Commenting on the increase, the BBA noted that the flexibility and convenience offered by online banking is particularly important for anyone running their own business. Owners and managers often spend the whole day doing other things, so they have to leave financial and other admin tasks until they get home.
The BBA survey also points to an apparent improvement in the cash position of small firms, with an increase of eight per cent in money held in deposit accounts. However, on the borrowing side, term lending grew strongly by 10 per cent - although this is well down on the increase of 18 per cent recorded one year ago.
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