Small businesses are rejecting bank managers in favour of accountants as a source of reliable financial advice.
70 percent of small firms list accountants among those they consult on financial matters compared with 47 percent who mentioned asking their bank manager. Only 20 percent of businesses seek financial advice quarterly or more often, with 36 percent admitting they had not met either a bank manager or an accountant in the previous year.
Phil Orford, chief executive of the Forum of Private Business, which carried out the study with commercial credit agency Graydon UK, said businesses were turning away from banks because of declining levels of service being offered.
“There is an increasing trend of established managers being replaced by individuals in call centres. This can seriously affect long-standing and profitable business banking relationships,” he said. "In light of these changes, it is not surprising that more small business owners are turning to trusted accountants rather than their bank managers."
Martin Williams, managing director of Graydon UK, said: "We certainly do not need a repeat of the last recession, when the relationship between banks and small businesses broke down completely."
