Export Funding

Exporting can be a great way to develop your business and to increase your profits, but you might need a little help to get there through funding support. There are a lot of ways you can raise finance to cover the initial costs of exporting and we’ve pulled together several of them for you to look into here. It’s also important to remember the risks that might occur when exporting and how you can generate financial security.

Export Grant

If you’re based in York, Selby, Craven, Harrogate or East Riding, you there is an export grant, Exporting for Growth, which you could apply for – it doesn’t matter whether you’re a first time exporter or have past experience. As the name might suggest, this is funding specifically designed to get your products and services into a new market. The export grant is usually up to £2,000 but larger grants may be available depending upon the project. The funding must be matched on a 50/50 basis in York, Selby, Craven and Harrogate, but 60/40 in East Riding. Be aware, this is only available for those in the manufacturing or service sector and must lead to the creation of one job per grant and an increase in export sales.

With the Exporting for Growth funding, you’ll be able to do the following tasks:

• Visit the target country and pay for in-country accommodation
• Pay for entrance fees to exhibitions/trade fairs
• Pay for shipping of any associated sample products, including the cost of the stand and associated fittings booked through the exhibition’s preferred supplier
• Pay for international marketing materials specifically for the target markets

This support won’t cover subsiding sales of a product or service.

Although this funding support isn’t available across the whole of York, North Yorkshire and East Riding, it was set up by the Department for International Trade and they offer general advice to businesses that sit in and outside the eligible area. Working with their experts, you will receive advice on:

• Business vision and goals, what you want to achieve and why you want to export
• Business exposure and the market research required to minimise risks
• Financial stability, subsidies and your potential to export
• Intellectual property and how to protect it
• Capacity to export in terms of resource required, i.e. employees, production capacity
• Costs that may be incurred, i.e. licence fees, distribution, documentation
• Brand and its suitability for international markets, such as product packaging localisation requirements, customising your website, translation of promotional materials
• Product or service marketing and promotion to an international target audience
• Route to market – how to effectively sell and plan your product or service sales
• Plus face-to-face support from an exporting expert familiar with your market sector

A loan option for export funding could provide you with more flexibility. You may also be able to use these extra pennies elsewhere in your business, including filling gaps in your working capital. One loan route includes the Northern Powerhouse Investment Fund, which offers three finance options:

• Microfinance £25k - £100k
• Debt finance £100k - £750k
• Equity finance £50k - £2m

You are eligible for this fund if you’re based in Yorkshire and not in the following sectors: property development, agriculture or retail. Through this support, you could achieve numerous growth ambitions that go beyond exporting, including:

• Fund expansion projects, such as leasing a new commercial premises
• Invest in new machinery and equipment
• Hire new employees

 If you require a smaller loan, the Business Enterprise Fund provide a range of options, ranging from a minimum of £500 up to a maximum £150k. You can find out more on their website.

As with Export for Growth, if you're interested in applying for one of these finance options, please get in touch with us via support@howsbusiness.org.

Security for your export finance

UK Export Finance are great at helping businesses with their exporting, and can provide you with guarantees or insurance if your contracts are over half a million pounds. Their insurance can protect you against payment risks when doing business overseas so you don’t lose out.

They offer a number of schemes to help you start exporting:

• Bond Support Scheme: your bank can provide the bond you might need with the support of UK Export Finance.
• Export Working Capital Scheme: Your bank can lend you the money you might need to fulfil a contract, and UK Export Finance can provide a guarantee which will give your bank more confidence in lending to you.
• Export Insurance Policy: covers the risk of not being paid under an export contract when you have fulfilled your contractual obligations. You will receive up to 95% cover.
• Letter of Credit Guarantee Scheme: Letters of credit help you get paid when exporting, and UK Export Finance can help make your bank feel confident issuing the letter of credit
• Bond Insurance Policy: You can get a bond insurance policy to protect you against a demand for payment under a bond which is either unfair or caused by political events.

You can also speak to one of their expert financial advisors who can point you towards potential sources of export finance and trade finance, as well as give you useful information about payment methods and risks, credit insurance, and the risks with foreign exchange. Find your nearest financial advisor here.

Give them a call on +44 (0)20 72718010, or email at customer.service@ukef.gsi.gov.uk

Exporting can bring numerous benefits to your business, including an increase in sales, so there’s no time like the present to get started with entering a new market. If you’re concerned about the financial impact then make the most of the funding support that is available.   

Additional support

If you'd like to find out more about exporting your product, why not download our free export pack? In it, you'll get lots of support to walk you through all the stages of exporting, from researching your market, to shipping and customs, all the way through to getting paid by your international customers.

>> Get your free pack here <<