SMEs Need To Trust Accountants
6th December 2017.
Small, Medium sized Enterprises (SMEs) may be the backbone of the economy, but they need support from accountants, and the manoeuvre space to do so, warns financial official.
In a recent article for Economia; Dominic Buch, managing partner at Caple, suggests that if SMEs are so important to the economy, more should be done to aid their growth. He insists that accountants should be encouraged to advise and expand SMEs in the UK.
Accountants are trusted business advisors to the SME community, Buch urges.
“Their advice and networking is essential in helping their clients access funding with greater certainty and quicker decisions”, he adds.
However in this uncertain economic climate, Buch acknowledges the difficulty in justifying an accountant’s fees on top of the limited size of an SME loan. But he does insist it is worth the risk.
He pressures for a shake up to lender processes, pushing for them to make room for an accountant’s input. Accountants can advise small businesses on the suitability of the lender, Buch stresses, as well as preventing the client from being pressured into additional fees by the lender.
With the large numbers of unknown, non-bank entities now offering loans to consumers, Buch insists it is imperative that businesses and individuals are advised on the quality and reputation of the creditor.
With the increasing difficulty in acquiring unsecured loans from banks, independent lenders are slowing taking the advantage.
Buch urges that this is where accountants can play a central role in the process. They have the ability to originate loans and build detailed funding proposals, helping clients access funding and build clear investment proposals at the same time.
In today’s current climate where any and all productivity gains should be grasped with both hands, we’re missing a trick by neglecting SMEs, warns Buch.
“But with new lending models that make the best use of accountants, SMEs could access the funding they need to develop and grow, and make an even greater contribution to UK economic growth”.
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