According to ABN AMRO Commercial Finance, 71% of SMEs surveyed have had their overdrafts reduced with 48% stating that they are heavily reliant on the buffer to stay in business.

Of the 250 businesses studied, more than 82% of SMEs said they used their overdraft to cover "unexpected costs" while 67% called on the facility to cover gaps within their cash flow.

In addition, 92% of firms surveyed admitted to breaching their agreed overdraft limits at least twice each year.

ABN AMRO Commercial Finance managing director Peter Ewen said it was "deeply concerning" that SMEs were operating in what he described as a changeable financial environment.

He said: "Financial stability is one of the most important precursors to growth, so SMEs’ over-reliance on overdrafts could be putting them, and broader economic recovery, at risk.

"In this difficult financial climate, those businesses looking beyond mere survival to growth and long-term success should seek out more reliable finance, giving them a stable foundation and the confidence to grow."

Earlier this month, finance experts warned that the government's plan to set up a state-backed bank to lend up to £10bn to SMEs would only benefit printers if it supports overdraft lending.

Mark Nelson of Compass Business Finance told PrintWeek that, on a scale of one to 10, the availability of overdraft lending to SME printers was "a three at best" and that this was causing far greater problems than the availability of finance for capital expenditure.

Elsewhere, corporate lending is expected to drop to the lowest level since 2006, shrinking by 4.6% by the end of the year.

New Ernst & Young ITEM Club research found that despite £44.2bn being lent to SMEs in the first quarter of 2012, 38% of applications were turned down.

According to the findings, the £10bn in loans offered by the state backed bank would prove inadequate and £19bn of funding is necessary to plug the SME financing gap.