SMEs Slowly Regaining Trust in their
Bank
Managers
November 2009
Latest research among UK owner managers from Close Invoice
Finance, part of the FTSE 250 merchant banking group Close Brothers Group plc,
indicates that UK SMEs’ confidence in their bank has started to rise during the
course of 2009.
The Small Business Finance Barometer found that 30.4% of SMEs - an estimated
1.4m nationally - consider their bank manager as the most trusted person to go
to for business advice compared with just 20% in 2008. This suggests that almost
half a million more small businesses are putting faith in their banks than in
2008 when frozen credit markets and high profile banking scandals fostered
negative sentiment across the business community.
However, accountants remain the first choice for SMEs with 42% of respondents
believing they provide best advice in the current climate. Notably, fellow
business owners take 35% of the vote, with mutual support networks also playing
an increasingly important role in guiding business owners through the recession.
Size also affects where an SME turns to for advice. Just one in four
businesses employing up to 50 people looked for guidance from the banks in
comparison to over 42% of the larger SMEs (101-250 employees). On a similar
note, SMEs with one to 50 employees are far more likely than larger business
organisations to turn to fellow business owners.
David Thomson said:
“As SMEs across the UK continue to feel the effects of the
recession, obtaining solid advice is critical. Our research reveals some
interesting positive changes as bank managers strive to rebuild business
confidence and now it seems that business owners are turning in increasing
numbers to their bank manager for counsel.”
David continued:
“Despite this rise, our barometer shows that the accountants continue
to be first choice for business guidance. Having been recently selected to
partner with the Institute of Chartered Accountants in England and Wales (ICAEW)
this reinforces Close Invoice Finance’s credentials as an adviser to the SME
sector in a time when efficient cash flow management is crucial for business
survival.”
Close Invoice finance is a leading independent provider of
factorings and invoice discounting services. With a growing number of businesses
impacted by late payment and bad debt, Close Invoice Finance recently upgraded
its award winning invoice discounting product, IDeal™, to include bad debt
protection cover. IDeal™ now offers clients unrivalled benefits of real-time
payment exchange, plus the extra peace of mind of that comes with knowing they
are fully covered should any of their protected customers fail to meet payment
terms.
