CBI urges major rise in export finance support

tHe CBi has called for a five-fold expansion of an export finance support scheme after figures showed that it had only helped 52 businesses in the past year.

a report compiled jointly with accountancy firm BDo estimated that medium-sized businesses could be worth an additional £20 billion to the economy if their overseas growth potential can be unlocked.

it said many firms were struggling to access the finance they needed to export and invest abroad and called for UK export Finance (UKeF) to aim to help 250 small and medium-sized businesses by 2015.

Katja Hall, the CBi’s chief policy director, said there was a “disturbing gap” in export finance that was shackling the international ambitions of businesses and could damage the UK economy’s long-term prospects. She said: “Government support has improved, but the reality is that they have not even scratched the surface when it comes to supporting the efforts of medium-sized businesses.”

She said UKeF, the UK’s export credit agency, must reach out to far more businesses and that both the UK government and the private sector need to look at how they can better deliver export finance to the growing companies that need it.

the report found that mediumsized firms appear to have little knowledge of the schemes that the UK government offers. two-thirds are unaware of UKeF, while 69 per cent of SMe exporters are not aware of UK trade & investment, the UK government department charged with helping business succeed in international markets.