Majority of Accountants Now Recommend Finance Providers to Clients

A two-thirds majority of accountants in the UK recommend that their clients consider using finance providers as a way of funding their operations.

That’s according to research conducted recently by the business finance company MarketInvoice, which surveyed a little less than 2,000 UK-based accountants on these subjects.

Accountants generally indicated that they approach the issues associated with company financing on a case by case basis but two thirds said they would and do recommend external service providers to clients in these contexts.

Slightly more than half (50.8 per cent) of the accountants polled said that they would recommend their clients speak to a bank about their financing needs and the possibility of using some sort of financial solution or product.

Notably, however, more than a third (36.3 per cent) of respondents said that they would recommend the option of using an invoice finance company, which represents a larger proportion than would advise their clients to take on a business loan.

MarketInvoice has described its research as demonstrating that accountants are increasingly “stepping up and advising their clients about funding opportunities”.

In a majority of cases where accountants were not willing to recommend external financing options to their clients the reason was found to be a relative lack of clarity and understanding on the part of accountants about what those options are and how they might work.

For other respondents to the recent surveys, there was a feeling that sourcing financing options on behalf of clients represented a time and cost burden that they weren’t willing or able to bear.

On the other hand, MarketInvoice has suggested that some “forward-looking” accountancy practices are working to expand the scope of their in-house expertise when it comes to finding viable funding options for clients.

MarketInvoice’s head of strategic partnerships Tom Davenport has said that his company’s research points to a growing appreciation of the role that invoice finance can play in contemporary business planning and management in the UK.

He said that the research “dispels the myth that invoice finance is a last resort for businesses” and that “accountants are clearly acknowledging the vital role it can play in helping companies manage their cash flow needs”.

“This research presents some fascinating insights,” added Ed Berks from the accounting software company Xero.

“It’s great to see accountants using a variety of funding options for their clients, but the opportunity to provide more value here is significant.

“For accountants to remain relevant, they need to learn more about the funding options available to their clients.”