A UK government tie-up with five major finance brands has enabled entrepreneurs to access export finance straight from their banks.
Under a scheme announced on 16 October, SMEs that supply exporters will be able to benefit from funding streams provided with the backing of UK Export Finance (UKEF).
A specialist division of the Department for International Trade, UKEF will release the funds through Barclays, HSBC, Lloyds, RBS/NatWest and Santander.
The partnerships are designed to help supplier level SMEs integrate themselves with major export contracts, thereby spreading the benefits of trade to growth-oriented firms across the UK.
Another central aim of the scheme is to ensure that SMEs will find the application process far quicker and more efficient than they have in the past.
If a requested transaction meets the initiative’s criteria, the partner bank will simply notify UKEF through a new, secure digital platform.
While it would previously have taken weeks to access the relevant funds through government channels – in addition to the banks’ own turnaround times – it will now take only a matter of seconds.
As such, UK SMEs can quickly and easily access the cash they need to boost their exports and revenue just by speaking to their bank manager.
International Trade secretary Dr Liam Fox said: “Small businesses are the backbone of our economy, and giving them the support they need to seize international trading opportunities is a priority for the Department for International Trade as an international economic department.
“That’s why we’re partnering with the five, major high-street banks to make government-backed finance from UK Export Finance readily available in a matter of seconds, opening up new global contracts to businesses across the UK.”
Unsurprisingly, the scheme has received a warm welcome from SME advocacy and support group the Federation of Small Businesses (FSB).
“Through our work with the Secretary of State for International Trade,” said FSB national chairman Mike Cherry, “I am delighted to see the government’s plans to improve access to export finance.
“The success of the UK economy rests on helping more small businesses to export – and export more. FSB research shows 20% of UK small firms already export, and with the right support this could double.”
UKEF’s announcement of faster and more readily available finance, he noted, means that more small businesses will be able to access growth markets all around the world.
Cherry added: “Small firms’ contribution to the UK’s export market is, of course, not limited to those that sell products overseas.
“Our research highlights that one in six of all UK small businesses also form part of a supply chain of which the end product is exported, so opening up export finance to this group of firms is great news.”