Small businesses are increasingly being funded by loans and business credit cards, according to a leading high street bank.
Lloyd's TSB says that structured loans and fixed-rate loans have emerged as the most popular methods for most start-ups and small to medium enterprises.
The bank has found that most small business lending is undertaken by the commercial sector with little government involvement.
Smaller businesses benefit from a wider range of borrowing options than large businesses and corporations, according to Stephen Pegge, head of communications for Lloyds TSB.
"More and more people are funding their business through structured loans and fixed rate loans as well as some variable rate ones," he said.
"There are business credit cards now, plus leasing and supply of finance… there is a much broader range of products and services available," he added.
Meanwhile, Sainsbury's Bank has revealed that, among average Britons, an appetite for credit is being replaced by a trend towards saving.
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