When applying for a business loan, banks often request a reference from your accountant—also known as a status enquiry. Many business owners expect this to be a detailed recommendation, but accountants face strict limitations on what they can include in these references.
What Accountants Cannot Include
Professional regulations protect both clients and accountants by restricting what can be shared in bank references. Accountants cannot:
Express opinions on creditworthiness – We cannot assess whether you’re a “good risk” or recommend that the bank approve your loan.
Provide any commentary on current or future trading activities – Even factual-seeming statements about business performance involve interpretation and analysis that extends beyond our role as accountants
Make future performance guarantees – Predictions about future profits, solvency, cash flow, or loan repayment capacity are prohibited.
Share confidential financial details – Specific turnover, profit, or tax figures require your written consent before disclosure.
Provide misleading reassurance – All information must remain strictly factual and neutral.
These restrictions exist because banks must conduct their own independent due diligence and credit assessments.
What Accountants Can Confirm
While limited, accountant references can verify several key facts:
Professional relationship details – We can confirm that we act for you and specify how long we’ve been your accountants.
Services provided – We can state that we prepare your accounts and tax returns.
Filing status – We can confirm when your most recent accounts were submitted.
Professional limitations – We explicitly state that we cannot comment on creditworthiness or solvency.
Most references are brief and include standard disclaimers to prevent misinterpretation.
Why These Restrictions Matter
Banks would prefer more detailed assurances, but accountants are not insurers or credit guarantors. Professional bodies like ICAEW and ACCA require that status enquiries remain factual only. If an accountant provided opinions that banks relied upon, they could face significant liability for any resulting losses—which is why the wording must be extremely careful.
What This Means for Your Business
When your bank requests an accountant reference, it’s a standard part of the lending process. We’ll provide a compliant response confirming our professional relationship with you, but this won’t replace your financial statements, credit history, or the bank’s own assessment procedures.
Supporting Your Loan Application
At Paul Marks & Co, we assist small businesses throughout Wimbledon and London with comprehensive financial services including:
Account preparation
Tax returns
Management reports for funding applications
Guidance on what lenders prioritize in their assessments
If you’re planning to seek financing, we can ensure your financial information is properly prepared and presented to give you the best chance of success.
Get In Touch
Contact us today to discuss your funding requirements and discover how we can support your business growth.
“Disclaimer: Paul Stankiewicz is the owner and principal at Paul Marks & Co Chartered Accountants which is the trading name of Paul Marks Ltd a Limited Company registered in England and Wales (registered number 4487645).This article is designed for the information of readers only and is the opinion of the author only. Readers should not act on any of the information contained in this article without seeking professional advice. Nothing in this article constitutes advice, nor does the transmission, downloading or sending of any information or the Material create any contractual relationship. Links to third party websites are provided as a convenience to the reader, Paul Marks Ltd does not control and is not responsible for any of those websites or their content. Paul Stankiewicz and Paul Marks Ltd accepts no liability or responsibility whatsoever for any loss or damage suffered by any user of the information contained on or accessed through this article or the Material downloaded.
