As global economic growth edges up to 3.1% and UK businesses continue to thrive despite the implications of last year’s Brexit vote, now is the time for SMEs to recognize the plethora of benefits that are available to them if they get on board with exporting.

Small firms that export their goods to sophisticated foreign buyers boost their overall profitability by 26% and also benefit from the transferring of skills and expertise.

Despite the benefits being paramount for SMEs that export on a global scale, research from alternative finance firm Growth Street has revealed that 65% of 1,100 businesses that were surveyed felt that they were dissatisfied with the guidance that was available to them regarding exporting.

SMEs that choose to export their goods globally will benefit from skill sharing and a reduction in the cost of matching domestic firms with foreign buyers, which will in turn boost trade. Traditionally, exporting has been associated with larger corporations, but for SMEs, it will mean the opportunity to reach larger and more sophisticated markets.

Unfortunately, many businesses are failing to see the bigger picture and open themselves up to the opportunities that are available to them outside of the EU. Thankfully, studies have also shown that SMEs are feeling more positive about the UK’s exit from the EU, with firms feeling confident regarding embracing the change having risen from 33% to 41%.

Hopefully this positive outlook and mind set will give more SMEs the confidence to push forward and expand into more lucrative foreign markets.

While the number of SMEs that are choosing to export is in decline, market research from YouGov has also revealed that companies choosing to take the plunge overseas are entering into more markets than ever.

GIC Capital is able to provide capital expansion for small businesses keen to facilitate growth or maintain their current levels of output in the form of business loans and overdrafts.

For more information about GIC Capital visit our website.

As the UK moves ahead with Brexit and inches closer to exiting the European Union, there will be an increased emphasis on how much business the country does abroad. This means a greater focus on exports to new trading partners, and an increased flow of goods to already established markets like American and China.

Luckily for businesses in the UK that export, the government is putting its best foot forward in nurturing and helping exporters grow and find success.

Access to Finance

Back in October 2017, the government came up with a plan to enable SMEs in the UK to access funding from banks to boost their export potential. Via the Bond Support Schemeand the Export Working Capital Scheme, the aim was to make it quicker and easier to obtain much needed finance. Backed by the UK Export Finance Initiative, these finance tools are now even easier to access and deliver funds at a much quicker pace.   

Instead of weeks waiting for funding, UK exporters can now access finance in minutes. The government has worked with lenders to reduce paperwork – doing away with the government’s own UKEF forms – and harmonise bank applications for export with the government’s own regulations. Now exporters applying for finance interface with the bank only and they check the application against UKEF’s criteria. This means that banks can vet an application against UKEF guidelines and approve on the spot.

At the same time, the government has created a streamlined digital service through which all finance transactions flow. This means less paperwork and less time spent on the minutiae of finance deals.

Practical Support

The barrier for many businesses seeking to export is often red-tape. It can be a hard process working out what finance or schemes are applicable to the business at hand and many SMEs are often wary of sinking time into something that might not ultimately be relevant to them. The government has also noted this and responded accordingly.

‘Exporting is GREAT’ is the UK government’s effort to provide a comprehensive, one-stop-shop for exporters, from the new to the established. They have specific sections covering everything from guidance to assessing export readiness to finance options. 

They also offer in-depth sections on business planning and marketing. The scheme and attendant site is a great portal for seeing the various forms of finance and support available for those businesses ready to export.

There has probably never been a better time to start exporting or, indeed, to expand existing operations. The government is fully behind exporters and the range of advice and finance out there is comprehensive.

Don’t forget, GIC Capital also provides business finance and can help you realise your growth ambitions. Contact us to find out more.