ONE in ten businesses in Yorkshire and Humberside has experienced a reduction in their overdraft level in the last 12 months, a new survey has revealed.
Of these firms, half claimed that the reduction has had a negative impact on operations, while a further 17% revealed that the cuts have stifled their plans for growth.
The figures come from the latest Close Brothers Business Barometer, a survey that canvasses the opinion of SME owners from a variety of sectors across the UK on a range of economic and financial issues.
Lee Hayes, Regional Director for Close Invoice Finance in Yorkshire commented, “Overdrafts have traditionally provided essential funding for SMEs. More recently, many have experienced difficulty in accessing finance from their banks and are no longer able to rely on overdrafts alone to fill the cash flow stopgap.
"Businesses will continue to struggle to sustain operations in the short term with even a minimal reduction in the finance they have at their disposal. The use of invoice finance, either in the form of full service factoring or confidential invoice discounting will provide many businesses with the core funding needed to enable sustainable growth as business confidence improves”.