UK Guild aims to shape the future of business finance

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A​​​​​​​ new organisation focused on corporate finance professionals aims to bridge gaps in the UK market by promoting best practices, professionalism, and ethical standards.  

The Guild of Business Finance Professionals is a new not-for-profit organisation, launched in June in London, to represent independent finance brokers and intermediaries. 

Stephen Bassett, the Guild’s chairperson, alongside vice-chair Trevor Pirie and other industry figures, identified a gap in the corporate finance market. They realised that, unlike consumer finance, the business finance sector lacked a professional organisation to serve individual practitioners. 

Since its launch, the Guild has attracted 50 members from over 40 firms, with expectations of steady growth. Members must be qualified, experienced professionals and recommended by peers. Each member is vetted and required to follow the Guild’s guidelines, promoting best practices and raising industry standards. The Guild aims to protect both lenders and borrowers by providing a mark of professionalism. 

Leadership of the Guild includes Bassett, Pirie, and Treasurer Amanda Stevenson, all appointed by the membership on an annual basis. Together with a five-member Steering Committee, they oversee the organisation’s activities and uphold its constitutional charter. 

Bassett, a freelance professional and non-executive director at several finance firms, started his career in the 1970s at Schroder Leasing. Pirie, also a freelance consultant, was a director and shareholder of Corporate Asset Solutions before it was sold to Close Brothers in 2020. Combined, they bring over 90 years of experience to the Guild. 

“We started talking about it during the pandemic,” says Bassett, noting that corporate finance lacked the representation seen in other financial sectors. “There was not a big enough voice compared to other trade bodies.” The Guild is focused particularly on smaller brokers, offering them a platform to be heard in an industry often dominated by larger firms. 

The Guild acts as both a professional body and a forum for discussion, with monthly virtual meetings open to all members. It is also open to collaboration with funders, trade associations, and other industry participants who share its values of enhancing standards, eliminating unfair practices, and educating stakeholders on the needs of corporate clients. 

Pirie’s podcast, Business Finance Matters, has also become an integral part of the Guild’s efforts. Co-hosted with David Grosse, managing director at Number Eight Business Finance, the podcast provides interviews and insights on finance products, market trends, and advice for business owners. Originally independent, the podcast is now a key feature of the Guild, offering an informative and entertaining resource for finance professionals. 

The Guild’s mission is rooted in promoting business ethics and supporting small and medium-sized enterprises (SMEs). SMEs, Bassett explains, often do not have the resources to afford the expertise available to larger firms, leaving them vulnerable to accepting finance products that may not be “the best fit” (a term they use a lot). 

“Too often borrowers search online and find only the biggest lenders with the largest marketing budgets,” says Bassett. “They need guidance from trusted intermediaries who can point them in the right direction.” 

For lenders, working with skilled brokers is also beneficial. As the podcast presenters often emphasise, borrowers who come through professional intermediaries are better informed and more likely to secure the right finance product for their needs. This aligns with the Guild’s goal of fostering trust and professionalism within the sector. 

The Guild’s founding charter stresses the importance of these ethical standards. Membership is restricted to individuals with a strong reputation and significant experience in providing intermediary, broking, or advisory services between borrowers and lenders. Members must be independent and cannot be part of bank-owned entities, franchises, or appointed representatives. 

According to Pirie, the role of business finance professionals is more critical than ever as the market grows increasingly complex. He notes that many business owners are vulnerable to unethical practices by some lenders or brokers. “The market is becoming more complex,” Pirie says. “Many business owners are vulnerable to those who have little interest in providing the best-fit solution at the right price.” 

The Guild aims to combat these issues by promoting best-in-class standards and ensuring that brokers and their services are better understood by all market participants, including customers, regulators, and the government. Eradicating poor lending practices and improving transparency will benefit both borrowers and the industry as a whole. 

Bassett, like many in the finance industry, has noted the government’s frequent emphasis on the importance of SMEs to the economy. However, he believes there is insufficient guidance to help SMEs access expert financial advice. 

This view is supported by the findings of the 10th edition of the Small Business Finance Markets Report for 2024, published by the British Business Bank. The report, which covers Q4 2023, highlights significant challenges in the sector. According to the survey, 81% of intermediaries believe that gaps exist in the supply of finance for small businesses, particularly in early-stage equity, growth-stage equity, and debt finance. Sectors most affected by these gaps include business services, construction, and distribution. 

The report also shows that 60% of respondents point to a lack of awareness of available finance options as a major issue. Other concerns include difficulties in accessing finance (45%), the cost of finance (43%), and an aversion to taking on finance (39%). Smaller concerns included under-developed referral networks (20%), a lack of trust in finance providers (13%), and no ambition for business growth (12%). 

Although sample sizes are small across regions, the report offers a valuable snapshot of the post-pandemic finance landscape. It also highlights some positives, with 87% of respondents indicating trust in their finance providers. Nonetheless, Bassett sees room for the Guild to help improve the sector by advocating for better awareness and pushing for reforms. He notes the troubling decline in awareness of alternative finance options between 2022 and 2023, which he describes as “unacceptable”—a challenge the Guild’s podcast is aiming to address. 

The report further identifies key changes impacting the UK’s financial ecosystem, including economic challenges, digital transformation, and government-backed initiatives like the Enterprise Investment Scheme (EIS) and Seed Enterprise Investment Scheme (SEIS), all of which influence the support available to small businesses. 

The time to act is now, with the Labour Party newly in power and offering fresh promises. However, Bassett believes that regardless of which party governs, the focus should be on fostering healthy competition in the finance sector, rather than introducing further costly and burdensome regulations. 

“Regulation is wrecking the market,” says Bassett, emphasising that the cost of increased regulation inevitably falls on borrowers. 

While he remains unclear about Labour’s specific plans, Bassett argues that simplifying lending processes would encourage a healthier lending market. He calls for measures that support fair competition and remove those who exploit the system. Bassett also stresses that brokers, like lenders, play a vital role in the economy, and should be recognised as part of the professional framework. Both he and Pirie urge the government to acknowledge this. 

In Bassett’s view, the issue is rarely one of liquidity. There is enough money available; the challenge is ensuring the right kind of finance reaches the right businesses. “SMEs, in particular, need access to skilled, hands-on expertise to find fair and appropriate funding,” he explains.