Financial Advice: Business Owners Trust Peers More Than Banks

One in ten small business owners don’t know where to turn for financial advice, and those that do are more likely to trust their business peers than their banks, research from RSM Tenon has found.

Professional services firm RSM Tenon’s quarterly Business Barometer of senior management in small and medium-sized enterprises found that 13 per cent of respondents would turn to their peers for financial advice, while only 5 per cent would go to their bank or building society. The survey also revealed that just over half of managers would visit their accountant.

John White, head of financial management at RSM Tenon, said the survey highlighted an alarming trend.

“The need for business owners to seek good, sound financial advice has never been greater. Worryingly, these results clearly show advice is being sought from non-professional sources which may mean that businesses are not getting the credible advice they need.”

White added that small firms will be in an even more difficult position later this year when the regional Business Link network is closed.

“Business Link is a trusted source of financial advice. When it ceases to exist, it will be one less place to go.”

Steve Hughes, economic adviser at the British Chambers of Commerce, said he wasn’t surprised that banks ranked so lowly as trusted sources of advice.

“The credit crunch has led to banks competing on price, and for some this means sacrificing good customer service. Any product recommended by an adviser should be thoroughly researched, as some banks have their own financial motive for selling particular products and services.”

If your small business needs further financial advice then it might be worth considering speaking with an Independent Financial Adviser (IFA). Use is4profit’s tool to Find an IFA.

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