The survey found many SMEs are reliant on savings and overdrafts to fund cashflow, big purchases and business investments.

It suggests 40% of SMEs are ploughing personal savings into firms, while 24% are using overdrafts to manage everyday finances.

HSBC’s research also showed 18% of SMEs use overdrafts to fund big purchases, such as vehicles and equipment, and 11% use credit cards for business investment.

Noel Quinn, head of commercial finance for Europe at HSBC, said: “We are urging businesses to ensure they have the right financial tools in place for the current environment. Our research tells us many are still turning to their own personal wealth or overdrafts to fund their businesses when there are often more suitable solutions.”