By Marcus Leach

Bank of England figures suggest that lending to small businesses has increased between the months of May and June.

Official figures from the Bank show that lending to small businesses actually rose by £238 million between May and June. This increase means that small and medium-sized businesses (SMEs) borrowed £170.4 billion in June.

It was the biggest monthly rise since the statistics were first produced in 2011. Lending to both small and large firms has been falling since June 2009.

"It is encouraging that lending to the smallest firms has risen in June, but for a lasting impact we need to see this over a number of months," John Allan, National Chairman, Federation of Small Businesses, said.

"We have already seen the price charged by the banks for finance fall since the introduction of Funding for Lending. However FSB member data shows that over the past several quarters, four in 10 firms see applications refused from the banks."

Join us on
Follow @freshbusiness