News that British SMEs are poised for overseas growth is welcome but there needs to be a renewed focus on financial support if firms are to achieve their full potential, says specialist lender GIC Capital.
Despite an uncertain outlook due to ongoing Brexit negotiations, SMEs are undeterred when it comes to their plans to export. Looking at both the European market and further afield, SMEs plan to bolster their UK success by reaching whole new markets over the next year, an ambition that GIC Capital praises and supports. Research from CitySprint Group indicated that some 1.3 million UK SMEs plan to fuel growth be exporting, with Europe, North America, and Asia on their radar, but GIC Capital is warning the ambition will only go so far without improved access to finance.
Kennedy Zvenyika, Managing Director of GIC Capital, said, “SMEs are often referred to as the lifeblood of the UK economy and as Brexit draws nearer it’s these businesses that are bubbling with enthusiasm and growth plans. But it’s also these firms that struggle to access lines of credit despite huge amounts of potential. If the UK economy is going to flourish once a Brexit deal is made, it’s critical that they have access to the financial lines they need to scale up operations and fulfil incoming orders.
“The traditional high street lenders are typically still reluctant to work with start-ups and small businesses or offer uncompetitive rates. SMEs that did credit options to put their plans into action should look to alternative sources. At GIC Capital we regularly work with SMEs, understanding the opportunities and challenges they can face, giving us the ability to create financial solutions that match their needs.”
The research also found that in order to fuel both national and international growth, SMEs plan to increase their sales and marketing activity, which was a priority for more than two in five. It’s an essential business area that can require investment, both in terms of finance and resources, making extending lines of credit even more important to successfully carrying out strategies and generating a return that can be reinvested.
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