The Federation of Small Businesses (FSB) has linked up with SME finance specialists ASC Finance for Business to try and help small firms negotiate the perilous environs of the credit crunch.

ASC Finance for Business and the FSB have unveiled five top tips to help companies stay afloat in hazardous economic waters. Firstly, companies are encouraged to be financially flexible and deal with more than one bank. Firms are also advised that hard work engenders good luck and focusing on your company's unique selling point is of key importance.

Small businesses are also reminded to be prudent and plan ahead meticulously while taking extra care to mange their costs. Finally, companies are counseled that there is nothing wrong with asking for help and professional advice should always be sought when necessary.

ASC Finance's managing director Henry Edjelbaum said: “We are being inundated by enquiries from small businesses which are being let down by their banks. Having successfully worked through three financial recessions, this credit crunch is nothing new to us."

John Wright, national chairman of the FSB, added: “The sustainability of the 4.5 million business enterprises in the UK is more important than ever in an uncertain economy. Small businesses do not need to panic."