We Asked Our Chartered Accountant How Accountancy Expertise Changes Funding Applications

An interview with Richard Brookes ACA, Co-Founder of Kingswear Financial

Richard, let's start with the basics. Why does accountancy expertise matter in a commercial finance brokerage?

It comes down to what lenders are actually looking at when they assess an application. They are not just deciding whether they like a business, they are reading a financial story. They want to understand the trajectory of the business, whether the numbers stack up, and whether the debt can comfortably be serviced. The most effective brokerages understand that story before it goes anywhere near a lender, and that requires genuine financial analysis, not just packaging.

We take a closer look at a set of accounts or management information in the same way an underwriter will. We can see what will stand up to scrutiny and what will raise questions. That perspective is built into everything we do at Kingswear from the very first conversation.

What does that look like in practice when a client comes to you?

Before we approach any lender, we review the client's financial position properly. That means their management accounts, their statutory accounts, profit margins, cash flow, and any existing borrowing. We are looking for anything a lender might question, a year of lower profitability, a director's loan account, a period where cash conversion was slow, and we address it before it becomes an issue.

It is pivotal that the brokerage you work with does this groundwork upfront. If weaknesses in your financial position are identified by the lender rather than by your broker, you are already on the back foot. We want to be the ones who find those things first, so we can either explain them clearly in the application or advise whether it is worth addressing them before applying. Nothing should come as a surprise to the lender, and nothing should come as a surprise to the client either.

You mentioned management accounts. How important are those in a lending context?

Enormously important, and often underestimated. Accounts filed at Companies House can be eighteen months old by the time a lender sees them. They tell you where a business was, not where it is now. Lenders want to see current, reliable information and the way that information is presented matters as much as the numbers themselves.

Well-prepared management accounts demonstrate that a business is professionally run, that the reporting is reliable, and that the directors have a clear grip on their finances. All of those things increase lender confidence. The effective brokerages make sure their clients go into an application with financial information that tells the full picture clearly, not just the numbers that happen to be available.

A lot of business owners apply for a loan and simply ask for what they think they need. Is that the right approach?

It is a very common approach, but it is not always the right one. Asking for too little can restrict what you achieve. Asking for too much raises questions about whether the business can comfortably service the repayments and lenders notice that immediately.

What we do is calculate the debt service coverage ratio and assess repayment capacity properly, so we can advise on the level of borrowing that genuinely supports the client's growth plans without overstretching the business. It is not about finding the maximum a lender will offer, it is about finding the right number for that business at that point in time.

What about lender selection, how does the accountancy background help there?

Significantly. Different lenders assess businesses in very different ways. Some focus on turnover multiples, some look at EBITDA, some are primarily interested in cash generation. Some are comfortable with prior adverse credit if the underlying trading is strong; others are not. Understanding which lender is likely to look most favorably at a particular client's financial profile is something that comes from knowing how to read that profile properly in the first place.

It is pivotal that the brokerage you use assesses your position through a lender's lens before submitting anything, because every application that goes to the wrong lender, or goes in before the numbers are ready, leaves a mark on your credit profile. We make sure clients only apply when the timing is right and the lender is the right fit.

You also help clients with tax liabilities. That is quite different from a standard brokerage conversation.

It is, and it is one of the areas where being able to have a genuine accountancy conversation makes a real difference. Corporation tax, VAT, and self-assessment liabilities can create significant cash flow pressure, particularly for businesses that are growing quickly, where the tax bill is accelerating faster than the cash position.

The most effective brokerages understand that funding is not always about growth capital. Sometimes it is about managing an upcoming liability before it becomes a crisis. We can look at a client's tax position, understand what is coming, and arrange finance in advance so it is planned and controlled rather than reactive. That conversation saves businesses from a lot of avoidable pressure but it requires someone who actually understands the tax position in the first place.

And what about refinancing? How do you approach that?

Honestly. Many businesses continue paying for borrowing that is no longer competitive. A facility that made sense when it was arranged but has never been looked at since. We calculate the true cost of existing facilities, including fees and any early repayment charges, and compare that properly against what is available in the market today.

If refinancing genuinely improves the client's position, we explain exactly why and quantify the benefit. If it does not make financial sense, we say so. Our strategy is driven entirely by what is best for the client's business not by whether there is another transaction to complete.

Finally — when is the right time for a business owner to speak to Kingswear Financial?

Before they approach a lender. That is the honest answer. The earlier we are involved, the more value we can add. Once a lender has already declined an application, the options narrow and the credit profile has already taken a hit.

Whether it is growth capital, refinancing, a tax liability, or simply wanting to understand what the business could realistically access and on what terms — the conversation is always worth having early. We are happy to take a proper look at a business's position with no obligation, and that initial review often surfaces things that make a real difference to the eventual outcome.

Kingswear Financial is a commercial finance brokerage co-founded by Richard Brookes ACA, a qualified Chartered Accountant. Our accountancy expertise is embedded into our funding process, helping businesses present stronger applications and make better financial decisions. This article is for informational purposes only and does not constitute regulated financial advice.