More small business insurance holders would consider borrowing money from their friends and family, it has been claimed.
A survey performed by Close Invoice Finance found that two in ten small business insurance customers would think of doing this if they could not find funding from banks.
Last year, the firm found that just ten per cent of owners would do this.
Furthermore, the new research discovered that one-third of small business insurance holders would fund their company with a personal loan if needed, while seven per cent would turn to their own credit card.
David Thomson, chief executive of Close Invoice Finance, said the survey shows a lack of funding from traditional suppliers is affecting small companies.
He added: "This has forced more and more owner managers to pursue risky short-term strategies to secure cashflow and in the process, put themselves and those closest to them, under intense pressure."
Figures from the Bank of England last month showed that lending to businesses fell from £9 billion in April to £7.9 billion in May, the largest decline in nine years.
