Schottky diodes on N-type SiC are fabricated using metal overlap on an oxide film as edge termination. The forward current spreading effect is investigated in this paper for the first time. The thickness of the oxide film varys from 800 to 7200 Angstrom DC current-voltage (I-V) measurements indicate that the forward current densities are higher for Schottky diodes with metal overlap edge termination than those of unterminated Schottky diodes with a similar Schottky contact area. The forward current improvement strongly dependents on the oxide film thickness and operational temperature. A possible model to explain the higher forward current density in Schottky diodes with edge termination is proposed based on the formation of an accumulation layer underneath the oxide layer under the forward bias resulting in the lateral current spreading.