Originally written by Anna Jordan on Small Business
Almost one in five small businesses have struggled with no cash in the bank, according to new research by Fluidly. The survey of 19,799 companies found that those having to use their overdrafts rose from 13.9pc in March 2019 to 17.8pc in January 2020.
Late payments, Brexit and economic uncertainty appear to be taking their toll as many businesses went into their overdrafts in nine of the 11 months tracked.
Plymouth was the worst-hit region at 35.7pc, followed by Southampton (34.3pc) and Peterborough, where around a third of businesses (32.8pc) have had to resort to their overdraft to survive.
RegionCompanies in overdraft at the end of the month (pc)
Plymouth35.7pc
Southampton34.3pc
Peterborough32.8pc
Shrewsbury31.1pc
Preston29.7pc
Stoke-on-Trent27.4pc
Manchester26.5pc
Bristol26.4pc
Milton Keynes26.1pc
York26pc
>See also: What are the best alternatives to a business overdraft?
Food and drink makers (34.7pc), product manufacturers (33.3pc) and farmers (32.6pc) have fared the worst over that 11-month period. This suggests that sectors investing large amounts upfront are suffering more.
IndustryCompanies in overdraft at end of month by industry (pc)
Food and drink manufacturers34.7pc
Product manufacturers33.3pc
Farmers (agriculture)32.6pc
Post and telecommunications31.7pc
Motor sales and repair31.3pc
Retail and trade30.8pc
Land transport30.4pc
Hotels and restaurants30pc
Construction29.5pc
Travel agents29pc
Last month, research from the Federation of Small Businesses (FSB) found that a growing proportion of finance applications (37pc) were being driven by