New ‘game changer’ export boost for smaller firms
THE Government has unveiled a major new export package for SMEs extending the support and guarantees available.
Dubbed a ‘game changer’ by the international trade secretary Dr Liam Fox, the new Small Deals Initiative sees the the UK’s credits agency UK Export Finance (UKEF) guaranteeing the loans of potential overseas buyers of British goods to make UK bids more competitive. Seventy-seven percent of business supported by the Department for International Trade (DIT) last year involved SMEs and the plan now is to raise exports as a percentage of GDP to 35 percent. A General Export Facility now allows UKEF to support exporters’ overall working capital requirements, rather than requiring support to be linked to the needs of a specific export. Dr Fox explained: “Recognising that it takes more than one business to deliver an export contract, UKEF has extended eligibility for its support to companies in exporters’ supply chains.”
Latest data shows that nearly a quarter of UK exports in 2015 were embedded in the exports of other countries.
This more flexible approach aims to strengthen smaller businesses by giving them greater access to bonds and working capital at time when the global economy looks set to slow down.
Dr Fox added: “Building a truly global Britain takes real investment. It cannot be done on the cheap.
“If we want to become an exporting superpower, with greater influence, selling more goods and services abroad and encouraging more British investment overseas, then we will have to invest in the capabilities required. UKEF’s work would be at the very forefront of this investment strategy.”