Banks should reconsider the overdraft rates they are charging to small firms, according to one industry body.
In news which might be of interest to business insurance customers, Stephen Alambritis, head of public affairs at the Federation of Small Businesses (FSB), described the charges at "hurtful", reports the Press Association.
His comments follow the news that Barclays has increased the overdraft margin for some of its customers to 10.8 per cent above base rate, meaning the total cost stands at 15.8 per cent.
Mr Alambritis said: "This rise in interest rates will be very hurtful to small businesses at a time when they desperately need that money to tide them over."
Companies might have to seek outer ways to reduce costs, such as cutting staffing levels, he added.
Yesterday, Bill Murphy, BT Business's managing director, told the Newcastle Journal that small firms can save money by allowing people to work flexibly.
