By James Bingham and Leanne Dawson, Pathfinder Invoice Finance
In this article, we look at the significant opportunities for accountants in offering Funding Advisory Services, a trend that is driving distinctive competitive advantage.
As trusted advisers, accountants are uniquely positioned to assist businesses in not only managing their finances but also in securing the necessary funding for growth.
In today’s challenging environment, where access to finance presents a significant barrier to growth for many businesses, the role of accountants has evolved to encompass Funding Advisory Services. Recent data from the British Chambers of Commerce Insights Unit highlights the mounting difficulties faced by businesses in raising funds: “Around half (49%) of surveyed businesses reported that obtaining funding had become more challenging over the past three years.”
However, amidst these challenges, one sector has emerged as a beacon of support for businesses: the invoice finance and asset-based lending (IF/ABL) sector. In 2023, this sector played a pivotal role in supporting UK businesses, contributing to a combined turnover of £316 billion – an annual record. This surge in turnover translated into record availability within IF/ABL facilities, with lenders offering working capital facilities exceeding £50 billion by year-end. Moreover, the average value of advance per client reached its second-highest recorded level, with clients drawing down an average of £584,000.
Recognising the funding obstacles faced by businesses, a growing cohort of forward-thinking accountants has begun integrating Funding Advisory Services into their practice offerings. The benefits of this approach are manifold:
Enhanced Client Services – Progressive accountants offer clients a comprehensive solution for all their financial needs, thereby strengthening client relationships and elevating the value proposition of the practice.
Diversified Revenue Streams – Incorporating Funding Advisory Services opens up new revenue streams for accountants, contributing to the financial health of the firm.
Competitive Advantage – By offering a broader range of services, accountants can distinguish themselves from competitors, positioning themselves as holistic financial advisers capable of addressing all aspects of their clients’ financial well-being.
Increased Billable Hours – Through collaboration with commercial finance brokers and leveraging technology tools to streamline the funding process, accountants save time on administrative tasks, thereby allocating more time to billable activities and enhancing the firm’s bottom line.
Long-term Client Retention – Providing comprehensive Funding Advisory Services enables stronger client relationships and loyalty, as clients are more likely to remain with an accounting firm that demonstrates a deep understanding of their financial needs.
For clients, the benefits of working with accountancy firms that offer integrated Funding Advisory Services are equally compelling:
Access to Expertise – Clients gain access to expert advice and guidance tailored to their specific funding needs and circumstances.
Time Savings – Working with an accountant offering Funding Advisory Services saves clients time and effort, as they can rely on their accountant’s broker relationships to navigate the complex funding landscape more efficiently.
Improved Financial Management – Partnering with an accountant offering Funding Advisory Services enables clients to gain a better understanding of their financial situation and make informed decisions about their business finances.
Expanded Network – Accountants with strong intermediary relationships can connect clients with the most appropriate finance sources, increasing access to the options available and dramatically improve the likelihood of securing financing.
Peace of Mind – Clients benefit from knowing that their accountant is actively involved in helping them secure funding, providing reassurance that their financial needs are being addressed by a knowledgeable professional.
Integrating Funding Advisory Services into the broader accountancy offering presents a significant opportunity for progressive practices to enhance client services, diversify revenue streams, and optimise billable hours. By leveraging innovative technology solutions and embracing tailored funding options, clients can navigate financial challenges more effectively, ultimately fuelling growth and success.
Establishing Value Added Funding Advisory Services
To find out more about how to establish and profitably run an effective and highly profitable funding advisory service that adds significant value to your client relationships, contact James Bingham or Leanne Dawson from Pathfinder Invoice Finance.
JAMES BINGHAM | FOUNDING DIRECTOR
Mobile: 07702 098884
LEANNE DAWSON | FOUNDING DIRECTOR
Mobile: 07843 904536
www.pathfinderinvoicefinance.co.uk
