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Banks must support the UK exports industry

Banks should support the UK exports industry by relaxing the lending criteria for firms looking at overseas trade operations, says the Forum of Private Business (FPB).

Research undertaken by the EEF shows that exports have grown by 36% since 2009, with strong growth forecast for 2012.

However, in order for this pace to be maintained, banks must play their part by ensuring that businesses have access to affordable credit to fund their operations. The Government must also play its part, and the FPB is now calling on them to make no further cuts to UKTI resources.

There are some concerns that if cuts are made then firms could be dissuaded from getting involved.

The Forum’s Senior Policy Adviser Phil McCabe said: “The Government has made much of the exporting, and this latest research suggests UK manufacturers have certainly been taking notice.

“Yet we know from our members’ own experiences that banks remain nervous about lending to firms whose business model takes them overseas. It is this risk aversion by the banks that has to end if Britain’s economy is to grow on the back of a healthy export market.”

Mr McCabe is now calling on banks to recognise that while exporting can be risky, it can also represent a dramatic increase in turnover and profitability.

He added: “Today’s report suggests UK business is finally ‘getting it’ when it comes to the importance of exporting, and the Government now must react accordingly and make sure the support is in place to allow firms to get it right. UKTI does a great job but in order to keep up the good work it needs the right tools for job.

“There hasn’t been much good news lately for business, this therefore stands out as something to celebrate. We must not lose the momentum and continue to encourage UK business to fly the flag for Britain on foreign shores.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .