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Accountants trusted over bank managers

Small and medium businesses do not trust their bank managers to give good financial advice, according to a new study.

The research shows that 70% of small businesses choose their accountants over bank managers to consult on financial issues, while only 47% see their bank managers as trusted advisers.

Conducted commercial credit agency Graydon UK, the survey found that 68% of respondents sought financial advice only when they think it is necessary. Some 36% admitted they had not met their accountants or bank managers over the past year, with 24% saying the lack of contact was down to a lack of faith in their advisers’ knowledge or because of poor advice received in the past.

Graydon UK managing director Martin Williams said: “The traditional ‘grey haired pillar of society’ stereotype of the bank manager as a trusted and respected source of financial advice has faded into the past. But as the economy hits upon hard times and banks become increasingly nervous about credit limits, SMEs need now, more than ever, to maintain a close dialogue with their bank managers.”

Nearly one in three firms surveyed said they are seeking more financial advice now than they were a year ago, with 37% expecting a need for more advice over the coming year.

This was posted in Bdaily's Members' News section by Ruth Mitchell .