Debt makes up a third of the problems that self-employed people need help with from Citizens Advice Bureaux around the UK.
60% of those seeking help have turned to credit cards, unsecured personal loans and overdrafts in an attempt to keep their businesses afloat.
Citizens Advice is highlighting these findings as the economy reaches a record number of self-employed workers.
Gillian Guy, chief executive of Citizens Advice, said: “Many people working for themselves are seeing their efforts unravelled by debt.
“Self-employment can be a positive route back into work, but people need to assess the risks when starting out on their own. With thousands of business owners coming to Citizens Advice each year with debt problems from companies they’ve built up and invested in, it is clear that for some people self-employment is not offering financial security.
“People are desperately turning to personal credit to keep their companies afloat. Banks must start listening to those small and medium sized businesses that drive the economy and help them with the vital support they need.”