Research from More Than has found that small businesses are being hit even harder with debt problems, as they have to deal with inflation of up to 10%, which is double the official rate.
Nearly all of the small businesses in the UK reported increased costs to the tune of 3.4% in the second quarter of 2008, making it harder than ever to keep out of the red.
It is widely expected that a record number of start-up companies will go bust before the end of 2008.