Research reveals central role of accountants

Who do business owners turn to for advice about funding and growing their companies? Nearly half say that their accountant is the first port of call, according to new research commissioned by Close. Accountants get top billing as the best source for business advice over bank managers, fellow business owners, solicitors and business angels.

Recent research conducted by Close shows that forty three per cent of the nation's business owners prefer to talk to their accountant when it comes to discussing financial issues and business growth. This compares to a quarter who visit their bank manager and one in five who seek guidance from fellow entrepreneurs.

That said, nearly a third of business owners believe that finance brokers and intermediaries could be doing more when it comes to recommending alternative ways to fund business growth.

SMEs are expecting a bumpy ride in the months ahead as the credit crunch takes hold. More than a quarter of the SMEs surveyed by Close said their biggest concern for the year ahead was market volatility, followed by cash flow.

While 27 per cent of business owners say they usually borrow from their banks to expand, many are anticipating that traditional funding routes could dry up as Bank's tighten up on their lending criteria.

Commenting on the findings, David Thomson, Chief Executive of Close Invoice Finance said. "Despite talk of a recession, the businesses we spoke to are very bullish about expansion - more than half are expecting to see growth this year. Yet businesses recognise they need better guidance from their accountants and brokers on how to access funding for growth."

Thomson continues that intermediaries and the businesses they advise need to wake up to the benefits of invoice finance: "We are increasingly seeing that more and more smart businesses perceive invoice finance as a strategic enabler not just a commercial crutch for their business. After all, adequate cash flow is an essential element for the survival and growth of any business, whatever its size."

If you'd like to find out more about how Close's portfolio of invoice discounting and factoring services can support your business please visit www.closeinvoice.co.uk or call 0800 220 257 to discuss your requirements.