Members of the organisation will be able to get information on banking and coping in the current economic downturn.

Sandy Harris, chairman of member services for the FSB, says: ‘During these difficult times it is important for business owners to have sound advice so they can make the right decisions for the good of their business.’

He said the organisation will continue to lobby the government on improving services to small firms in the credit crunch but said this will aid them in the short term.

Contactable on a freephone number, the phoneline is in addition to a legal helpline and finance advice the FSB already offers.

The new service will run in competition with the government’s Business Link line, which also offers financial guidance.

According to Red Tape, a business advice website, the 24-hour legal helpline from the FSB received over 100,000 calls last year.