What funding advisory means for accountants
Funding advisory does not mean becoming a credit broker. For most accountants, it means:
- Identifying when a client has a funding need
- Introducing them to a regulated credit broker who handles the process
- Earning commission from that introduction
This is a permissible activity under FCA guidance for most accountants — even those without FCA authorisation. The credit broker (not you) handles the regulated activity.
A minority of accountants hold their own FCA credit broking authorisation and can manage the full application process. This guide focuses on the more common case — the introducer model.
Spotting funding opportunities in client conversations
The most common triggers:
Working capital: clients mention a cash flow dip, a late-paying customer, an upcoming VAT bill, or a payroll pressure point. Invoice finance, credit lines, or short-term loans are relevant here.
Growth capex: a client wants to hire, buy equipment, expand premises, or enter a new market. Term loans, asset finance, and revenue-based finance are options.
Large contracts: winning a big contract often requires upfront capital before the customer pays. Invoice finance or contract finance covers this gap.
Seasonal peaks: retail, hospitality, and construction businesses frequently need additional working capital before a peak period.
Tax liabilities: R&D tax credit advances can bring forward cash that is owed months later by HMRC.
Acquisition or succession: buying another firm, buying out a retiring partner, or acquiring a competitor are all fundable scenarios.
The introducer conversation
You do not need a detailed understanding of lending products to be a useful introducer. A simple conversation framework:
- Acknowledge the funding need: “It sounds like you need additional capital to manage that. Have you explored your options?”
- Explain what you can do: “We have a partner programme that can match you to 50+ lenders and identify the best options for your situation. There’s no obligation and no cost to apply.”
- Submit the referral: log the referral in your partner portal. The broker contacts your client directly.
You do not need to recommend specific loan products, assess creditworthiness, or compare lenders — that is the broker’s job.
Limits of introducer activity
Under FCA rules, “credit broking” as a regulated activity includes:
- Introducing customers to credit brokers or lenders in the course of business
- Working out what business credit agreements might be appropriate for a customer
- Assisting customers by undertaking preparatory work for entering a credit agreement
Basic introductions (pointing a client to a broker, sharing a link) are generally considered outside the regulated perimeter. However, if you begin advising on which loan product is most appropriate, comparing specific deals, or filling in application documents on a client’s behalf — you may be entering regulated activity.
The practical rule: introduce and hand off. Do not advise on specific credit products unless you are FCA authorised to do so.
Full detail: Do Accountants Need FCA Authorisation for Lending Referrals?
Building it into your practice
Who should refer: partners and senior managers are best placed to identify funding needs in review meetings. Some firms brief their bookkeeping team to flag cash flow warning signs.
Volume expectations: in a firm with 100+ business clients, 2–5 referrals per month is a realistic starting estimate. That represents £4k–£10k in additional annual revenue per person referring — at zero incremental cost after setup.
How to talk about it: “We’ve partnered with Fundably to give clients access to 50+ business lenders. If your business has a funding need, we can introduce you and they’ll handle the rest — there’s no obligation and no cost to apply.”
What to put on your website: a short “Business Funding” section linking to your partner portal adds credibility and generates inbound referrals from prospective clients researching your firm.