A recent report by ING Direct said that an increasing number of advisers are struggling with cash flow issues, and that financial advisers now hold an average of £2,097 in outstanding bills
Our poll asked if brokers were struggling with cash flow issues and 12% of respondents said they had become a “major problem” for them, with a further 39% saying they were also suffering with money issues, but that they were currently under control.
Just over a third (37%) of those polled said that they had no issues with cash flow while 12% said they were not presently struggling, but that it was a cause for concern in their business.
Gemma Harle, managing director of Tenet Lime, told Mortgage Solutions that brokers needed to make sure they had enough cash in reserve to try and avoid any cash flow issues.
“After a huge rise a few years ago I’d say the number of advisers struggling is now slowing, but it’s still challenging out there for people. We need to educate brokers that it’s not just about how they use their money but also about creating reserves.
“They need to make sure they have a good strategy for their business and structures in place to prevent any form of payment shock.
“Brokers often think that their finances are okay but they need to make sure they practice what they preach. Sometimes it’s hard to admit that they need help with their own finances.”
