UK firms prioritising exports as growth strategy

A recent survey by business advisory firm BDO has revealed that one in four mid-sized businesses in the UK are prioritising exports over the next six to nine months.

Despite involving often complicated challenges such as red tape and customs rules, 47% of businesses questioned in the survey plan to either maintain or increase their exports as a key growth strategy. 

The survey also highlighted that firms felt more government support was needed to help expand work overseas and meet growth ambitions, with 57% calling for financial assistance.

Bathgate Business Finance has seen this focus on exports for growth within its own client base, and has been supporting businesses through the General Export Facility (GEF) scheme, which was launched in December 2020 to help UK exporters by providing a government guarantee to lenders of up to 80% of the credit risk.  

An example of a facility under this scheme, offered by Bathgate via a trusted funding partner, allows the drawdown of single or multiple loans. With a minimum value of £26K they can be loaned over a period of 12 months, with a minimum term of three months. 

Bathgate BDM, Ian Adams, said: “Although the GEF has been around for four years now, many eligible businesses are still not aware that it exists and could support their exporting ambitions. 

“The flexibility of the facility helps clients to borrow in line with cash flow requirements, manage the gap between tendering and gaining projects, and better support seasonal businesses – all challenges that we have seen clients face.”

One client supported using the GEF by Bathgate was a business supplying ranges of gloves both to retail market and safety wear specialists. As a seasonal business it required finance to fund stocking levels and the revolving nature of the GEF facility worked well alongside invoice finance.

Stock purchases were undertaken both to accommodate a key overseas client and retail outlets, through an annual £250K facility, which the client has renewed for the last two years and plans to do so for the following year.

Ian continued: “GEF does remain an export finance best kept secret and we’d like to change that, as we know how beneficial that GEF can be in supporting export plans.”

To find out more about GEF and other export finance options contact Ian Adams on 0151 625 7323, email proposals@bathgatebf.co.uk or visit bathgatebf.co.uk to find out more.