UK Intermediary Market Survey

Quarter 4, 1 October 2020

Highlights from our survey of 200 business finance advisors

Business finance experts acting as intermediaries between their clients and funding providers offer a unique insight into the UK economy.

Our survey of 200 accountants, finance brokers, business advisors and insolvency practitioners reveals the financial challenges and opportunities facing their businesses today.

Unsurprisingly, the impact of the Covid-19 pandemic and the related financial pressures feature prominently in the report. Finding the right solutions for clients has never been more important as many navigate the road to recovery.

Here we feature some key highlights from the survey results taken from the full UK Intermediary Market Survey 2020 report.

Key statistics

Almost nine in 10 intermediaries (86%) have received enquiries relating to the Coronavirus Business Interruption Loan Scheme (CBILS)

Two-thirds of intermediaries have received enquiries from those rejected for CBILS

81% of advisers have recommended Invoice Finance for those rejected for Government-backed loans

More than two-fifths believe an increase in insolvencies is likely once Government support measures stop

42% of advisors state the key challenge over the coming months is the willingness of funders to lend to their client

“Structuring the right financing options is often down to the expertise of a seasoned intermediary being able to connect the dots between business and lender. ”

Dave Golding, UK Sales Director, Bibby Financial Services

Government support for businesses

Government stimulus measures introduced since March have dominated the finance landscape. But these sources of finance for a business offers only short-term fixes with longer-term debt implications.

Two-thirds of intermediaries say they have received enquiries from clients rejected for the Coronavirus Business Interruption Loan Scheme (CBILS). And 81 per cent have recommended Invoice Finance to those rejected for CBILS

Many fear an increase in insolvencies is likely once Government support measures stop.

Dave Golding, UK Sales Manager, Bibby Financial Services, added: “While the sector is now awash with cheap cash, central support alone won’t save UK businesses.”

Challenges and opportunities facing intermediaries

The willingness of funders to lend to businesses will be a key challenge over the coming months, according to two-fifths of advisers.

Others point to a series of tests including:

Financial health among clients
Bad debt risks
Restoring faith of clients in the economy
Political and economic uncertainties
Maintaining enough business

“Bridging the gap between banks and state aid is the new reality,” was a key opportunity identified by one intermediary. While another predicted: “Cessation of government support and weakened balance sheets are likely to lead to a rise in working capital support required.”