declare @Value2Convert varchar(max)
declare @temp table( binaryField varbinary(max))
declare @result varchar(max)   
select @Value2Convert= 13,  @result = ''

while 1=1 
begin 	
	select @result= '0'+convert(char(1),@Value2Convert % 2)+@result, @Value2Convert = convert(int, (@Value2Convert / 2)) 
	if @Value2Convert = 0 break
end 

--this return value desired value, I want to save in varbinary field the way it is
select '0x'+ @result 

 --this will not work as it will return error
--insert into @temp(binaryField)
--select @result  

--this will work but result is incorrect as 0x01010001 will be converted to 0x3031303130303031
insert into @temp(binaryField)
select cast(@result as varbinary(max))

select * from @temp

select cast(binaryField as varchar(max)) from @temp
select convert(varchar(max), binaryField, 0) from @temp