Small businesses taking out bigger overdrafts Small businesses are taking out larger overdrafts amid mounting cost pressures and reduced consumer spending. Research shows that the value of overdrafts used by SMEs increased by 18% from £8.3bn in May 2021 to £9.8bn in May this year. For SMEs in the manufacturing sector, the spike is far steeper, with overdrafts up by 69%. For small firms in retail, overdrafts in the sector have increased by around 40%. Meanwhile, a poll of 1,000 business owners carried out by the insurer Simply Business saw 70% of SME owners say that rising costs were their biggest challenge this year.