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Businesses are increasingly relying on the internet to help cut their costs during the credit crunch, a new survey has found.

The report, by business insurance firm Premierline Direct, said online spending has surged by nearly 40%, while more than half of businesses say they use the internet because it gives ‘more control’ over expenditure.

Seven in 10 entrepreneurs said the web increases productivity, cutting travel costs and time spend out of the office, and more than half said they now purchase more online than they would have three years ago.

Businesses are most likely to use the internet to pay their bills, with nearly three quarters saying they use the web to manage their finance. Over half said they buy equipment over the web, while more than 40% use it to order stationary.

Chris Little, the organisation’s managing director, said the internet is invaluable for small businesses.

“The growth of the internet has really made products and services more accessible to business owners and is an ideal tool for companies looking to make time and cost savings by shopping around for the best deals, whilst also benefiting from the speed and simplicity the online channel offers,” he said.

© Crimson Business Ltd. 2008