A new financial support package for small to medium sized business (SMEs) will be announced as Dr Fox speaks at a celebration of 100 years of UK Export Finance’s (UKEF) backing for international trade today (Wednesday 5 June).
Over the past decade UKEF has provided over £30 billion-worth of support helping over 600 UK exporters to grow their business in overseas markets. However, this is the first time such an extensive financing package has been made available to small businesses exporting to fast-growing emerging markets from the UK.
The package will include:
The Secretary of State for International Trade Liam Fox will say:
“These announcements are potential game changers for our export industry, and will help us to tap a fresh vein of potential from within our economy.”
It is estimated that roughly 400,000 businesses in the UK can export but don’t, and this initiative helps SMEs to export and become more productive. This more flexible approach will give smaller business greater access to bonds and working capital.
The Small Deals Initiative sees UKEF guaranteeing the loans of potential overseas buyers of British goods to make UK bids more competitive.
Dr Fox will also warn that the world must brace itself for a period of upheaval as the global economy looks set to slow down, but will argue that the work the Department for International Trade is doing through UKEF will help strengthen British exporters like never before.
Dr Fox will conclude:
“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.”
Source: Department of International Trade