Research involving 400 small and medium businesses suggests that almost two in five plan to use personal credit cards to boost their spending power or cover bills this year.

The study by Rebuildingsociety.com, conducted late last year and published today, shows that 37 per cent of 401 respondents raising capital outside of traditional banking routes will do so on personal cards.

It also showed that 56 per cent of small business owners had dipped into their own savings to cover debts or invest in growth during the last 12 months.

"Clearly SME owners are willing to do whatever it takes to ensure their businesses stay on track,” said RebuildingSociety managing director Daniel Rajkumar. “More often than not, though, it is a quick fix.”