Export & import business loan covid-19 is a significant loan scheme launched by the UK government to support SMEs in continuing their overseas trade. This measure is aimed at providing a supportive backdrop to a small business group's overseas expansion plans. The concept behind the scheme is to assist those exporting goods and services from the UK to smaller and developing countries, thereby enhancing the competitiveness of UK firms both directly and indirectly. This is achieved through facilitating access to finance resources and better access to trading partners that otherwise would be beyond reach.
The scheme is administered by the UK Export Office and is designed to complement the Government's wider business loan schemes. In simple terms, the UK Export Office enables UK exporters to access up to date information about finance schemes available and also to apply for the necessary funding, in line with their individual needs and trading needs. With the help of this funding and information resources, UK small businesses are able to plan ahead for future transactions, and to successfully execute on those plans.
For UK exporters, access to adequate finance can provide important inputs into their operations. While UK business loan options have traditionally focused on bank financing, the introduction of the new scheme opens up the door to a number of alternative funding sources including non-traditional lenders. Lenders such as non-traditional lenders have been emerging as reliable funding options in response to the current economic recession. Non-traditional lenders include non-bank commercial banks, credit unions and mortgage institutions. In the UK, these sources of funding are categorized under three heads, which are namely:
While it remains to be seen whether the UK Exporters and SMEs can fully utilize the scheme, it appears that there are some areas where they have achieved success. The main benefits to UK exporters of non-bank loans are better access to finance, a more flexible repayment schedule and access to different lending sources. According to the UK Exporters Association, the UK financial sector needs an estimated $1.5 billion by the end of 2021. With the assistance of the MSA's business loans scheme, UK exporters have better access to funding. In the UK, most business loans are classified as micro-enterprise business loans.
Micro-enterprise business loans are specifically targeted at SMBs (small and medium sized businesses). They are perfect for SMEs that require short-term funding to support specific aspects of their operations. These loans are not available on the main street, but instead must be sourced through a broker. These loans are eligible for a higher interest rate than a typical UK lender; however the flexibility of the repayment terms is often a significant factor for choosing an SME based lender.
Other UK business loans are suitable for UK exporters with less than five years experience in the industry. Business loans UK is categorized as main street based loans. They are not eligible for standard rate discounts or interest rate holiday packages. To qualify for these main street based loans, an exporter must have a good credit rating, a UK . . . . . . export market worthy of growth and a business plan that clearly outline projected export growth.
Disaster loans are also a great choice for UK exporters looking to fund emergency expenses. Disaster loans are made available after disasters such as storms, fires, floods, earthquakes, etc., when a business's financial viability is at risk. This type of UK business loan is different from regular UK home loans in that a business does not have to make repayments for twelve to twenty-four months. There are also no requirements for business loans UK in the form of six-month repayment schedules.
While UK lenders are willing to provide a wide range of business loans, it is important to shop around for the best deal. The easiest way to compare business loan interest rates and loan terms is to apply online. Most reputable UK online loan providers will offer a free no obligation quote. This will enable you to find the lowest available rates and terms on your business loan.