New SME finance scheme
Feb 08 2007
A new scheme has been launched by the Institute of Chartered Accountants in England and Wales (ICAEW) that will help SMEs to get expert advice on raising finance.
The SME Funding Adviser Scheme, which has been set up in response to a Government initiative, aims to ensure businesses have access to a wide choice of independent professional advisers across the UK on a whole range of business finance options.
In 2004 the Government and Accountants Working Group report Facilitating Finance recommended the introduction of a mechanism to ensure the easy identification of specialist and experienced finance advisers, particularly for SMEs.
The ICAEW is one of a number of organisations that has worked with Government to establish the new scheme. It will aim to meet the needs of SMEs and help them to address some of the key issues in raising finance.
The Institute’s recent Enterprise report revealed that the smallest firms worry about their ability to absorb rising borrowing costs and good financial management is more important than ever.
A total of 1,900 ICAEW firms have signed up to the new scheme so far, registering the services their practice offers. These include advice on bank loans and overdrafts and business plans for bank and equity finance.
Michael Izza, chief executive of the ICAEW, says ‘Our members already give guidance to many SMEs and because of our members these companies can do business with confidence. The scheme aims to signpost more SMEs to the expertise a chartered accountant can provide.’
Stephen Pegge, chairman of the Small Firms Advisory Panel of the British Bankers Association, welcomed the announcement: ‘Banks are usually the first port of call for start-ups and for established businesses, and have a key role to play in putting firms in touch with the right sources of advice.
‘Productive working relationships with accountants with expertise in SME finance are essential to ensure firms prosper and grow, and the scheme will make that easier for local bankers.’