Lloyds Banking Group have recently broadcasted their up and coming plans to help SMEs who have never exported before. The British Bank has also announced their promise to assist 5,000 SMEs in 2016 and a further 25,000 by 2020 to becoming exporters for the first time.
Export specialists from the banks will also deliver support and guidance to the SMEs that have never exported their products. The British Bank have also revealed that they are increasing their financial lending to SMEs by £1bn.
The support is all part of the UK government’s aim to guarantee 100,000 businesses to be exporters by the end of this decade. The Minister of State for Trade & Investment, Lord Price has commented:
“This government has committed to having 100,000 more UK companies exporting by 2020, and this pledge by Lloyds is a welcome contribution towards this target. It’s great to see the banks doing their bit to support small and medium-sized businesses looking to invest and create jobs.”
These plans are set to help reverse the UK’s increasing trade deficit – an economic amount of disapproving trade balances which has meant that importing has surpassed exports. The plans have come during a time when Britain’s trade deficit within the EU has hit a high of £23.6bn from January to March – according to the ONS (the Office for National Statistics).
The figures are now at their highest point since 1998, this is supposedly because of the fall in exports within the UK. Just 20% of the 5 million businesses in the UK are known to be exporting across seas compared to Germany ‘the leader’ where 25% of their companies are exporting their produce, according to The Telegraph
Managing director of SME banking at Lloyds, Gareth Oakley has commented:
“The future success of the UK economy hinges on small businesses looking to overseas markets for growth. Through this new pledge, we want to support a new legion of UK exporters, and ultimately to help the UK economy to prosper.”