A growing competition in the UK lending market saw commissions and fees for mid-market businesses drop off in the last quarter of 2014, according to the Bank of England (BoE).
In its Credit Conditions Survey, the Bank said that loan pricing spreads, the points between the lowest and highest prices for loans, had narrowed significantly for medium sized companies and large corporates by the end of last year.
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The report said: "As has been the case for much of the past two years, lenders reported that spreads on loans to medium-sized companies and large corporates fell significantly in 2014 Q4, while spreads on loans to small businesses were unchanged.
"The fall in spreads for medium-sized companies and large corporates in Q4 was attributed to increased competition among lenders. Fees and commissions decreased in Q4 for businesses of all sizes, but the most significant falls were for medium-sized companies and for large corporates."
The report also noted there was a significant increase in demand for corporate lending from medium sized companies, whilst loan defaulting fell for medium and large corporates.
British Business Association chief economist Richard Woodhouse said the cost of lending was falling for many businesses.
Woodhouse said: "That’s good news for the wider economy, as that is the sort of borrowing that can help fuel the recovery."
