Jump to MenuJump to Main ContentJump to the SidebarJump to About A&T Business AssociatesJump to How A&T Business Associates are DifferentJump to How A&T Business Associates WorkJump to Our LinksJump to our Industry NewsJump to Legal InformationJump to Viewing OptionsJump to SearchJump to Site MapJump to Contact Page

How small business can afford to target export-market growth

With Brexit fast approaching, focus is growing on the export capabilities of British businesses, in particular with regard to trade outside of the EU. However, setting up to do this comes at a cost. Alternative finance can help small business afford this growth.

The vote to leave the EU has forced a rethink of export trade strategies. While Brexit won’t stop businesses exporting to European markets, there is a good chance that it won’t be so attractive. As a result, businesses are being encouraged to widen their horizons. The government is working hard to promote Global Britain and initiatives and services have appeared to help businesses that want to take this step.

For example, a recent City A.M. article profiles Tails Trading and how this British firm is helping British small businesses ship their goods to markets in Asia. Separately, the Institute of Export and International Trade has recently announced a partnership with Just Cashflow to help educate small businesses about export trade, including with markets outside the EU.

Despite the fears and uncertainty surrounding Brexit, exploring export trade potential and expanding market coverage outside of the UK and Europe can be a positive move for small businesses that have the right products and services to offer. However, such growth has a price tag.

First and foremost, a business targeting export-market growth is likely to need to invest in expanding their infrastructure to accommodate this new focus. And time and money have to be spent on gaining foreign market knowledge, including that of new systems, protocols, regulations and customs. In addition, if the target markets are outside of the EU, then trading will take place in multiple currencies, which comes with its own financial management demands, in particular if there is an element of currency instability to consider.

So, how can small businesses afford to make such a move? Alternative finance can help.

Prolonged caution from traditional lenders has helped drive the growth of the non-bank finance sector and services such as invoice finance, asset finance, peer-to-peer lending and crowdfunding are providing small business owners with an alternative means of raising capital for business growth, including export-based expansion.

This is how a small business in Sussex used peer-to-peer lending, through a commercial finance broker that specialises in alternative finance, to raise the capital to buy new equipment.

Regardless of Brexit developments and the promotion of non-EU export markets, trading outside of the UK is a move that can help small businesses grow. If such growth is viable, small business owners need to be aware of all the financing options available to them, including alternative finance.

To find out more about A&T Business Associates services, contact Tony on 01903 602211 or tony.hedger@atbusinessassociates.co.uk.

Return to the News Page