Accountant highlights funding options for exporters

NORTH West accountants Mitchell Charlesworth is urging small businesses to take the plunge into new markets, and has highlighed four Government schemes to help.

The firm, which sees its knowledge of export markets as a particular USP,  says for the right companies “huge opportunities” exist, particularly beyond the EU.

Partner Brian McCann said: ““At present only one in five businesses export – many firms may be held back by a lack of experience overseas or confidence in whether the funding package is strong enough.
“Nevertheless there are several funding schemes available that can help and give that vital reassurance.”

The four Government schemes are: Letter of Credit Guarantee Scheme, which helps protect exporters if foreign companies or banks default on payments; the Bond Support Scheme , which is  designed to give exporters access to more funding and credit. This scheme is available only to firms exporting to countries in the EU.

Thirdly there is the Export Working Capital Scheme,  which aims to provide firms with working capital for specific contracts. If banks agree a funding facility for exporters based on a specific contract, the Government guarantees to underwrite up to 50% of this.

Finally the export extension of the existing Enterprise Finance Guarantee scheme provides banks lending to exporters a guarantee to underwrite up to 60% of the loan facility.