Small and medium-sized businesses (SMEs) should be careful when using credit cards to finance their company, according to one expert.
Editor of industry website smallbusiness.co.uk, Adam Wayland, said that credit cards can end up being the "worst enemy" of SMEs and that people should consider other options.
"If you need a small amount of capital they can be useful but they shouldn't be use solely to generate cash for your business," he said.
He added that businesses experiencing success may not struggle but those with more consistent financial difficulties should be careful.
"They are not a long-term solution - if you are having a cash flow issue then you need to assess them directly without running up a credit card bill."
A study by the Office of National Statistics said that by the end of 2006 there were an estimated 2.9 per cent more business enterprises in the UK than on the previous year with an estimated total of around 4.5 million.
