SMEs Urged to Consult Accountants as Demand for Finance Heats Up
SME bosses are being advised to consult with their accountants as they consider their financing options heading into 2023.
New research suggests that demand for fresh borrowing from SMEs is likely to heat up significantly over the course of next year, with accountants expected to play an important role in how those arrangements come together.
Allica Bank polled 150 UK businesses with between 10 and 100 employees recently and found that 89 per cent plan to increase or reorganise their lending over the next 12 months either to stay afloat, to cover their overheads or to refinance their existing debts.
With that level of demand for borrowing expected to be seen across the country, the view from Allica Bank’s chief product officer Conrad Ford is that reliable advice and guidance from relevant experts and accountants will be needed more than ever.
“Especially as the economy is expected to enter recession,” Mr Ford has said. “We recommend businesses consider speaking to their accountant or a commercial finance broker for support when looking at their finance options.”
Looking more broadly, Mr Ford has said he believes banks should be doing more to ensure information about what borrowing options are accessible is made more readily available to SMEs and their advisers.
“It’s the responsibility of banks to give businesses the best chance of surviving and thriving through this recession by ensuring they can make informed choices,” he said recently.
The Allica Bank spokesperson has also said that financial service sector operators should be able to provide SMEs with swift responses to their loan applications so that they can plan and adapt more quickly at a time when economic pressures are mounting.
Most economic experts anticipate that 2023 will be a particularly tough year for the UK economy and the companies operating within it.
Previous research conducted by Allica Bank found that almost 40 per cent of British SMEs expect either to be pushed out of business entirely next year or to be forced into making layoffs to balance their books.
