Value of small business overdrafts down 37%
Banks are failing to make overdrafts available to small firms in favour of lending to large firms, according to research by Funding Options. The research has revealed that the value of overdrafts provided to small and medium-sized firms fell by 37% to £19 billion from 2011 to 2016. Over the same period, the value of overdrafts made available to large firms increased by 25% to £24 billion. As a result, Funding Options argues that small firms will need to consider alternative finance options in order to meet their short-term funding needs.
Source: Funding Options