A free national telephone advice service for struggling small businesses has reported a steady increase in calls.

For the quarter ended June 2001, Business Debtline received over 1,700 calls, an increase of 17 per cent on the previous quarter.

Since the service was launched over a year ago, it has received taken more than 5,500 calls from small businesses. With well more than 1.5 million self-employed people in the UK and the economy showing clear signs of slowing down Business Debtline is predicts busy times ahead.

Business Debtline's co-ordinator, Tessa Farrell, said: "Most small businesses we talk to are in the retail and service sectors.

"Many of these are talking about recession and are extremely worried about the future. People we talk to with significant debt and no means way of trading out of it are seriously thinking about bankruptcy."

Small businesses wishing to discuss problems with an experienced debt advisor or obtain a free information pack on dealing with debts should contact Business Debtline on 0800 197 6026. Lines are open Monday to Friday in normal office hours and a 24-hour answer machine will operate outside these hours.