Emscote Furniture, the firm she had taken over two years before, was making a profit for the first time and she had received an email from her bank manager congratulating her on its progress.

So she was baffled when only two weeks later Lloyds TSB told her it was cutting the business's overdraft by a third - citing the company's erratic performance.

Mrs Heath feels the credit crunch is behind the bank's decision, but believes lenders are penalising the very companies who could help the economy.

She said: "Up until recently they had been very supportive but now I feel as if I have turned from being a person to a number in a system."

"To get to this stage and then be stopped by the bank is very annoying. They are not helping the economy because they are not lending to small businesses."

The Hampton Lucy woman employs five people making handmade bedroom and kitchen at her factory in Coten End. She said it was normal for firms to break even in their first two years, and stressed the company only "dipped into" its overdraft when it needed to.

Mrs Heath hoped to expand as householders affected by a slowdown in the housing market looked to improve their homes rather than selling.

But she says her plans, and those of firms she trades with, have been limited by the banks' attitude.

She added: "We have a showroom and we want to expand and employ new people because business is going very well, but they are just tying my hands.

"It's happening to all small businesses. The banks are creating a problem themselves and making the situation worse."

A Lloyds TSB spokesman said: "We are a responsible lender and take a 'through the cycle' approach to our lending, supporting customers with a consistent policy.

"Any decision regarding lending is based on the individual case and, in particular, on the performance of the business.

"In this case our decision not to extend Mrs Heath's business overdraft facility was based on concerns about its financial performance.

"While Emscote Furniture has been loss-making for two years, we have continued to work with the company.

"Having just received updated figures we are in ongoing discussions with Mrs Heath about its requirements."