Is your accountant providing the right lending advice?
19th July 2019
By Esmée Hardwick-Slack
Accountants play a large and important role in businesses of all sizes. They help in tax saving, complex accounting tasks and save many businesses time and money. However, research from Market Invoice suggests that they may not always represent the best resource for companies looking for new funding. While 66% of accountants refer their clients to external lenders, 36% of those don’t cite a lack understanding as their main reason for their reluctance. 19% admit the “time and cost burden associated with sourcing third party options” would prevent them from suggesting alternative lenders, while a further 18% say they are put off by the “potential administrative stress” in managing the relationship between a potential lender and their client.
The study also found that out of the accountants referring their clients to external lenders, 51% recommend speaking to a bank and a further 36% suggest an invoice finance provider, ahead of 34% referring clients to business loan providers.
When it comes to sourcing funding, such as invoice finance and asset finance, there has been a surge in new lender offering short-term facilities such as loans, making it easier than ever to obtain a facility that’s tailored to a business’s specific funding requirements.
How to find the right finance facilities for your business
Typically, the search for new funding facilities will start online. A quick google search for any finance product will return dozens of lenders, each offering different variations, service levels, charging structures and expertise. Many others will rely on word of mouth and recommendations from business associate, family or friends who have had either a positive or negative experience with a particular lender or product.
However, you can’t always rely on search engine or recommendations to find the most suitable facility. Finding the right funding will require you know the type of funding that will be best for your business and if it’s even available. You will then have to determine which lender represents the best fit for your business’s needs, this may not always be obvious from a web search. Likewise, just because your associate or family/friend has recommended a product and lender, doesn’t mean that it is the best thing for you and your business.
If you’re looking for some help raising finance for your business, visit our Corporate Finance page and see how we can help you.