The UKâ€™s smallest factors are struggling as the effects of the credit crunch linger, according to a report by Plimsoll.
The analyst has given 44 small motor factor companies a danger rating.
David Pattison, author of the report, said: â€œWhereas large companies can call on banks and parent companies or cut out loss making parts, smaller companies are running out of cash.
â€œThere are too many small companies chasing too little market. The inevitable is another round of consolidation with large competitors buying small companies at a discount.
“Of the 354 companies with assets of less than Â£3 million, we have identified 148 as vulnerable to takeover.â€