Small and medium-sized enterprise (SME) owners have been warned to be careful in what measures they take to combat the lack of credit available to their firm.
It may be wise to seek professional insolvency services if your business is struggling, rather than allowing problems to mount up.
According to Atlantic Finance Management, some bosses might be tempted to use personal loans and other forms of credit to make up for the lack of finance available to their companies.
This is a dangerous game to play, the firm warned, with those who do so running the risk of getting themselves into fiscal difficulties if things do not work out as they had planned.
The debt solutions expert noted that insolvency figures for the second quarter of 2011 are likely to show a sharp increase in the number of SME owners in serious economic trouble.
For many, this will be because they have used their personal credit cards and loans to help bolster their business.
"The number of business owners and company directors contacting Atlantic’s debt advisors for help has risen noticeably since the beginning of the year," explained director Kevin Still.
"When you look at the conditions they are facing, it is not surprising. Small businesses are the hardest hit by late payment, access to loans and credit is still very difficult and many have seen their overdraft facilities withdrawn."
The expert added that it is fairly common for owners and directors of SMEs to be linked to their business and that many are often tempted to "deepen these ties" by taking out personal finance to help keep their company solvent.
Mr Still added that some bosses find themselves caught up in a vicious circle of paying off one debt by taking out another.
"This can have long-term consequences for the individuals concerned and could seriously limit their access to financial products and services," he said.
Meanwhile, firms looking for insolvency advice may be buoyed by the news that SFP Group recently helped the Kent-based Cake Bake Company find a buyer in the form of West Midlands-based Baker Boys Limited.