Accountants are now seen as much more than just accountants. Time-poor clients are increasingly looking for a one-stop shop that offers advice on business, investments, tax and, increasingly, business funding. As a result, it’s becoming vital that accountants stay informed about emerging innovations in finance.
A particular area that is developing rapidly is that of alternative lending solutions. A range of new products is emerging, and many business owners are simply not aware of the options available to them. For this reason, sharing knowledge about alternative lending may increase your status as a trusted adviser and might be the lending solution that your client is looking for.
Below are three reasons to consider speaking with your clients about alternative lending.
1) It demonstrates your continuing relevance
Almost every field within financial services is being revolutionised by technology.
However, technology is only as good as our ability to harness it. So keeping up with new developments and providing strategic counsel around them can preserve the relevance of financial services professionals, regardless of their specific area of expertise.
Because alternative lending is a major factor in this finance revolution, it presents a large opportunity for in-the-know accountants. By informing clients of the greater number of options available to them as a result of alternate financing, accountants can demonstrate their continued value in the face of technological disruption.
2) It adds value
Alternate financing solutions are often far simpler than traditional options, and typically offer more flexibility.
For this reason, this range of new lending solutions could drastically simplify the lives of your clients – a goal of most, if not all, business owners.
So, it’s really a no-brainer: if you’re able to share information and advice regarding new lending practices that achieve the above, it should certainly help you stand out positively from the crowd.
3) Clients' growth is your growth
According to a report released in 2015 by the Global Agenda Council on the Future of Financing & Capital, there is a funding gap of more than $2 trillion for SMEs in emerging markets alone.
Our own research using raw Reserve Bank data also revealed that around $20 billion good SME loan applications are not being approved in Australia each month.
If this funding gap is met, or even partially met in Australia, there is vast growth potential for SMEs. And if clients' business grows, it’s likely that you will be able to grow your business as well – especially if their growth is off the back of your advice.
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