business with confidence icaew.com clive lewis, head of enterprise the icaew sme funding adviser...
TRANSCRIPT
![Page 1: BUSINESS WITH CONFIDENCE icaew.com Clive Lewis, Head of Enterprise THE ICAEW SME Funding Adviser scheme](https://reader030.vdocuments.us/reader030/viewer/2022032707/56649e375503460f94b28194/html5/thumbnails/1.jpg)
BUSINESS WITH CONFIDENCE icaew.com
Clive Lewis, Head of Enterprise
THE ICAEW SME Funding Adviser scheme
![Page 2: BUSINESS WITH CONFIDENCE icaew.com Clive Lewis, Head of Enterprise THE ICAEW SME Funding Adviser scheme](https://reader030.vdocuments.us/reader030/viewer/2022032707/56649e375503460f94b28194/html5/thumbnails/2.jpg)
BUSINESS WITH CONFIDENCE icaew.com
Contents
• Background to the scheme
• What’s the problem being addressed?
• Details of the scheme
• What’s in it for member firms?
• How is the scheme being promoted?
• Statistics on Business finance
• QAD issues
![Page 3: BUSINESS WITH CONFIDENCE icaew.com Clive Lewis, Head of Enterprise THE ICAEW SME Funding Adviser scheme](https://reader030.vdocuments.us/reader030/viewer/2022032707/56649e375503460f94b28194/html5/thumbnails/3.jpg)
BUSINESS WITH CONFIDENCE icaew.com
Background
• Government concerned that not enough SME’s getting independent advice on business finance
• Formed Government and Accountants Working Party
• Chaired by Michael Snyder (Senior Partner, Kingston Smith) with representatives of H M Treasury, Small Business Service, small business organisations, ICAEW and ACCA
![Page 4: BUSINESS WITH CONFIDENCE icaew.com Clive Lewis, Head of Enterprise THE ICAEW SME Funding Adviser scheme](https://reader030.vdocuments.us/reader030/viewer/2022032707/56649e375503460f94b28194/html5/thumbnails/4.jpg)
BUSINESS WITH CONFIDENCE icaew.com
Facilitating Finance Report
• This was produced in September 2004
• Recommendations included:
– Introduction of SME Funding Adviser scheme
– Development of a Financial Healthcheck
– Business Link operates “intelligent signposting” to SMEs wanting finance advice
– SBS to produce two “No-nonsense Guides to Finance”
![Page 5: BUSINESS WITH CONFIDENCE icaew.com Clive Lewis, Head of Enterprise THE ICAEW SME Funding Adviser scheme](https://reader030.vdocuments.us/reader030/viewer/2022032707/56649e375503460f94b28194/html5/thumbnails/5.jpg)
BUSINESS WITH CONFIDENCE icaew.com
Post Facilitating Finance Report Events
• It became apparent in discussions on implementation of the report that the proposed scheme would not fully satisfy the needs of government or meet the criteria set by ACCA and ICAEW
• ICAEW took the decision to lead the way by putting its own scheme in place
• ACCA may put its own version of scheme in place later
![Page 6: BUSINESS WITH CONFIDENCE icaew.com Clive Lewis, Head of Enterprise THE ICAEW SME Funding Adviser scheme](https://reader030.vdocuments.us/reader030/viewer/2022032707/56649e375503460f94b28194/html5/thumbnails/6.jpg)
BUSINESS WITH CONFIDENCE icaew.com
What problem is being addressed?
• Most small businesses go straight to a bank when seeking finance for their business. Most do not consider whether they could manage their resources better thereby avoiding the need for additional finance
• Without independent professional advice businesses sometimes end up either being refused finance or being offered inappropriate finance.
• The scheme will offer smaller businesses the opportunity to discuss their business’ needs before approaching a finance provider
• The independence and reliability of the advice is paramount
![Page 7: BUSINESS WITH CONFIDENCE icaew.com Clive Lewis, Head of Enterprise THE ICAEW SME Funding Adviser scheme](https://reader030.vdocuments.us/reader030/viewer/2022032707/56649e375503460f94b28194/html5/thumbnails/7.jpg)
BUSINESS WITH CONFIDENCE icaew.com
What is the scheme?
• Using the ICAEW on-line Directory of Firms, businesses, banks or Business Link can search for practices offering finance advice in their area.
• If the business already knows the type of finance it requires it can search on the particular specialism (such as bank loans and overdrafts)
![Page 8: BUSINESS WITH CONFIDENCE icaew.com Clive Lewis, Head of Enterprise THE ICAEW SME Funding Adviser scheme](https://reader030.vdocuments.us/reader030/viewer/2022032707/56649e375503460f94b28194/html5/thumbnails/8.jpg)
BUSINESS WITH CONFIDENCE icaew.com
Joining the SME Funding Adviser scheme
Where your entry will appear
and where you can update it
Entry form – hard copy
![Page 9: BUSINESS WITH CONFIDENCE icaew.com Clive Lewis, Head of Enterprise THE ICAEW SME Funding Adviser scheme](https://reader030.vdocuments.us/reader030/viewer/2022032707/56649e375503460f94b28194/html5/thumbnails/9.jpg)
BUSINESS WITH CONFIDENCE icaew.com
The ten specialisms are…
• Bank loans and overdrafts including SFLG (1330)
• Business plans for bank and equity finance (1591)
• Business start-up (own funds and family finance) (1532)
• Small scale equity (e.g. Business Angels) (397)
• Asset finance (960)
• Corporate finance (equity issues, MBOs, debt refinance, etc) (815)
• Invoice discounting and factoring (761)
• Grants (721)
• Leasing and hire purchase (835)
• Share valuations (1051)
Numbers indicate take-up of the scheme by firms.
The total is approximately ICAEW 1,900 offices
![Page 10: BUSINESS WITH CONFIDENCE icaew.com Clive Lewis, Head of Enterprise THE ICAEW SME Funding Adviser scheme](https://reader030.vdocuments.us/reader030/viewer/2022032707/56649e375503460f94b28194/html5/thumbnails/10.jpg)
BUSINESS WITH CONFIDENCE icaew.com
The detail…
• Practices who list at least the first four specialisms are labelled SME Funding Advisers.
• Businesses seeking finance but unsure what type of finance they need or high growth businesses might want might seek advice from an SME Funding Adviser
• Some financing activities are defined as investment business under the FSM Act 2000 and require the practice to be either registered with the FSA or the ICAEW as a the Designated Professional Body regulations
• The SME Funding Adviser website gives detailed guidance on when the FSM Act regulations might apply in each of the ten specialisms.
![Page 11: BUSINESS WITH CONFIDENCE icaew.com Clive Lewis, Head of Enterprise THE ICAEW SME Funding Adviser scheme](https://reader030.vdocuments.us/reader030/viewer/2022032707/56649e375503460f94b28194/html5/thumbnails/11.jpg)
BUSINESS WITH CONFIDENCE icaew.com
What’s in it for member firms?
• Unlike the other specialisms with the ICAEW DOFs the SME Funding Adviser scheme is free to practises
• The scheme offers a practice the opportunity to signal to the marketplace an important service offering.
![Page 12: BUSINESS WITH CONFIDENCE icaew.com Clive Lewis, Head of Enterprise THE ICAEW SME Funding Adviser scheme](https://reader030.vdocuments.us/reader030/viewer/2022032707/56649e375503460f94b28194/html5/thumbnails/12.jpg)
BUSINESS WITH CONFIDENCE icaew.com
How is the scheme being promoted?
• There is an link to the scheme through the businesslink.gov website, the official government service for new and small businesses (average 70,000 visits per month)
• Media campaign in national and regional press
• Advertising campaign on small business websites to drive traffic to on-line directory
![Page 13: BUSINESS WITH CONFIDENCE icaew.com Clive Lewis, Head of Enterprise THE ICAEW SME Funding Adviser scheme](https://reader030.vdocuments.us/reader030/viewer/2022032707/56649e375503460f94b28194/html5/thumbnails/13.jpg)
BUSINESS WITH CONFIDENCE icaew.com
Some statistics on SME finance
• 2 million business use an overdraft (£12bn o/s)
• 2 million use credit cards (annual spend £1.4bn)
• 900,000 businesses use term loans (£64bn o/s)
• 900,000 businesses use leasing or HP (spend £2bn pa)
• Grants used by 250,000 businesses (£7.6bn over 3 years)
• 100,000 businesses use factoring and discounting (£8bn monthly)
• 100,000 businesses use equity finance (£14.3bn in 3 years)
• 250,000 businesses use family and friends
Source: Finance for Small and Medium-Sized Enterprises (2004)
Centre for SMEs, Warwick Business School
![Page 14: BUSINESS WITH CONFIDENCE icaew.com Clive Lewis, Head of Enterprise THE ICAEW SME Funding Adviser scheme](https://reader030.vdocuments.us/reader030/viewer/2022032707/56649e375503460f94b28194/html5/thumbnails/14.jpg)
BUSINESS WITH CONFIDENCE icaew.com
QA Issues
• Practice Assurance, ethical and disciplinary codes underwrite scheme
• Data currently stored by Wilmington. A file will be produced for loading onto ICAEW
• Annual Practice Assurance letter includes reference to scheme
• No particular review required on inspections
• Principle risk is the practice straying into FSMA areas without relevant authorisation.
![Page 15: BUSINESS WITH CONFIDENCE icaew.com Clive Lewis, Head of Enterprise THE ICAEW SME Funding Adviser scheme](https://reader030.vdocuments.us/reader030/viewer/2022032707/56649e375503460f94b28194/html5/thumbnails/15.jpg)
BUSINESS WITH CONFIDENCE icaew.com
Further information…
• Website
For practices wanting scheme details:
http://www.icaewfirms.co.uk/sme
• Directory of Firms:
http://www.icaewfirms.co.uk/
• Contact:
![Page 16: BUSINESS WITH CONFIDENCE icaew.com Clive Lewis, Head of Enterprise THE ICAEW SME Funding Adviser scheme](https://reader030.vdocuments.us/reader030/viewer/2022032707/56649e375503460f94b28194/html5/thumbnails/16.jpg)
A world leader of the
accountancy and finance profession
BUSINESS WITH CONFIDENCE icaew.com