Business Library

Find an independent financial advisor

An independent financial advisor (IFA) can be a great asset to the development of your business. Nearly all businesses use them at some stage, either to advise on expansion and development plans or for strategic advice over rough periods. They can prove expensive, but the benefits can be very valuable.

These include:

Relevant and extensive experience
Awareness of the options - as full time financial professionals, IFAs are aware of the special deals and unique options offered by various providers
Objectivity - IFAs can look at your business options with an unjaundiced eye: their obligation is to give you independent, unbiased advice which is best for your business

However, to get these benefits you have to select the correct IFA. Making the initial contacts can be simple. Any surfing of the Internet will throw up a wide variety of names. Alternatively you can phone 0117 971 1177 (in the UK) and the IFA Association will recommend members in your area.

When making your selection, you should:

Make sure that the individual you are considering is a real IFA - the Financial Services Authority maintain a central register of all IFAs in the UK, and you can check with them to see if your IFA is registered; this is sensible, as deceptions are not unknown
Personal recommendation is pivotal to selecting any service professional - you should ask trusted business colleagues which IFAs they use and why
Try to find the right 'fit' of consultancy - if you are a small concern, going to a major national chain may not be appropriate; alternatively, if you require detailed advice on a very particular issue, a small specialist firm might be the best fit
Ask to see evidence of experience in your area and references - remember that, with you as a potential client, your IFA should be more than willing to give you this information
The relationship you develop with your IFA is a personal one; try to gauge in initial interviews if you are going to be able to develop an effective relationship - does you IFA make you feel comfortable explaining sensitive business issues, speaking the same business language as yourself?

Action Checklist:

Check that your IFA is qualified and registered
Find an IFA who has had experience of your kind of business
When interviewing a prospective IFA, be clear about your goals - the more precise the brief, the more precise the advice
Be proactive and work with your adviser to find solutions; there is no point in being passive, receiving advice with which you disagree or cannot use

Get no obligation quotes on commercial financial services including: business loans, factoring, asset finance, invoice discounting, commercial mortgages, business insurance, and commercial motor insurance.

This is a guide. It may be helpful for you to speak to an advisor in commercial finance. E&OE