SMALL businesses in the north west owe at least £83.2 million in overdrafts according to new independent research commissioned by MAC Commercial Finance (GMAC CF), one of the UK's leading corporate funding specialists.
The survey found that 26 per cent of small and medium-size enterprises (SMEs) are running overdrafts of more than £20,000, indicating they are paying high interest on their debts that could be put to better use if invested back into their businesses.
According to the Department of Trade and Industry (DTI), there are nearly four million SMEs in the UK, with a combined annual turnover of over £1,000 billion. SMEs comprise 99.8 per cent of UK businesses, making them fundamental to the UK economy.
Clive Naylor, area manager for GMAC CF invoice finance said: "An overdraft can be an expensive way of funding debt. Businesses are increasingly looking for more innovative solutions to their cash-flow problems, as they realise the limits of more traditional credit lines, such as overdrafts.
"One such solution could be invoice finance, where the company can receive immediate capital on current invoices."
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