SMEs trust accountants 'more than banks'

Small businesses are increasingly placing their trust in accountants rather than bank managers when it comes to financial advice.

An investigation by the Forum for Private Business (FPB) and credit agency Graydon UK has found that 70% of small firms would choose to consult an accountant rather than their bank manager on fiscal matters.

The study also found that almost a third of enterprises are seeking financial advice more now than they were a year ago.

Phil Orford, chief executive of the FPB, commented: "An issue that has not been reported as widely as lending restrictions is the declining level of service being offered by the banks."

"Established relationship managers are being replaced by individuals in call centres, which leads to the loss of long-standing and profitable business banking relationships."

He added that in light of these changes, it was no surprise that firms were increasingly placing their trust in independent advisers.

The FPB represents around 25,000 UK-based businesses, which themselves employ more than 600,000 people.