While two thirds of accountants advise clients on finance raising options, it is traditional bank finance which is still the most popular option with half (51%) of accountants who make recommendations suggesting that their clients speak with a bank about their finance needs.

More than one in three (36%) accountants would propose invoice financing, ahead of a business loan (34%).

The research from invoice finance specialist Marketinvoice, conducted with around 2,000 accountants, looked at the hurdles preventing accountants from referring their clients to external finance lenders.

The majority (36%) of accountants who do not currently refer their clients cited a lack of understanding of the different finance options as the main reason for their reluctance.

Others (19%) indicated the time and cost burden in sourcing the appropriate options, while one in five cited the administrative stress in managing the relationship between a potential lender and their client.

Tom Davenport, head of strategic partnerships at MarketInvoice, said: ‘Forward-looking strategic accountancy practices have in-house business finance specialists advising clients on funding options.

‘This research dispels the myth that invoice finance is a last resort for businesses; accountants are clearly acknowledging the vital role it can play in helping companies manage their cash flow needs.’

Ed Berks, business platform director EMEA, at accounting software provider Xero, added: ‘For accountants to remain relevant, they need to learn more about the funding options available to their clients.’

Report by Pat Sweet