Short Cash in Hand

Cash from capital is already there in the bank. Check which is cheaper- cost of capital or cost of overdraft interest. Then cut off unwanted activities to save some expenses. In cash management, there are two methods of cash management- Economic order quantity and baumols model. The first is the best as you are experiencing low sales. 

Sorry, forgot, the second model is called as Miller Orr. 

Since unsecured loans are from:

• Credit Cards: 
• Personal Loans
• Payday Loans
• Peer-to-Peer Loans
• Education Loans
• Signature Loans

the auditor looks for the source of finance. If you have a receipt, then there should not be any problems. Since your bank statements suggest it is a bank loan, you will need no further evidence I believe because I don’t work on filings part. 

You can introduce capital and that also should be from owners bank account. If the owner has cash, it is better because it’s interest free. 

Your right. Since it is an SME, the above techniques won’t be necessary. But if your have a good turnover,  try to invest in marketable securities or deposits so that idle cash will give returns. You can also liquidate them when ever you need additional working capital.