£20m Brexit Support Package Announced

Michael Gove this week announced the Government’s £20m support package – SME Brexit Support Fund – to assist SMEs with changes to trade rules as a result of leaving the UK, and the turmoil changes to EU import and export has caused for many.  

 SMEs can apply for funding in the form of £2,000 grants. 

The grants will be awarded to assist SMEs with their understanding and implementation of new rules and regulations such as outsourcing professional training and expert advice.

New systems and processes will need to be accommodated, including changes to new customs, point of origin and VAT rules which need to be understood in order to meet new Brexit regulations. These grants will help with the cost of education on such regulations.

The £20m support package is a result of lengthy and detailed weekly meetings, chaired by Mr Gove, with businesses, official business organisations and trade associations within the UK as well involving the Brexit Business Taskforce.

The application process for these grants will open next month, March, and will be managed through the existing Customs Grant Scheme, in time for businesses to acknowledge and meet new import controls that will be effective from April and July this year.

The Federation of Small Businesses Chairman, Mike Cherry, supports the SME Brexit Support Fund, commenting, “This announcement is very significant. Small businesses, often with few cash reserves, are for the first time facing complex new customs processes, VAT requirements and rules of origin. While many have come to FSB for help, we have been asking for proper financial assistance of this scale, so that a cash-strapped small business can afford to buy-in expertise, training and practical support. The new fund will make a significant difference, and we are pleased that Ministers have really engaged with us on this and come up with an excellent response.”

Another way SMEs can help their business manage cashflow at a time when many new taxes, levies and waviers are needing to be paid for, is by using a dedicated export finance facility.

Export invoice finance ensures a robust cashflow, that works in conjunction with importing and exporting goods via the EU by advancing monies on issued invoices within 24hrs. It is simple to set up and even easier to implement into a business’s accounting procedure:

• Issue your invoice as normal, copying in your invoice finance provider.
• You are advanced up to 90% of each invoice value within 24hrs (balance paid when customer settles).
• Comprehensive invoice data – issued, outstanding, paid – available to view on secure online portal.
• Inclusive of credit control facility so invoice payment by your customers is managed on your behalf.
• Your invoice finance grows with your business, meaning it does not need constant renegotiation which could stump growth at critical times.

Nearly 50,000 UK businesses are reaping the benefits an invoice finance facility brings to their business.  

• Export invoice finance is easy to apply for.

It is also rarely declined - because it is based upon issued invoices and not a lending facility - and is usually set up and fully operational in a couple of weeks. 

• Export finance releases monies an SME is owed in tied up, unpaid invoices.

A business does not actually borrow money, it is just paid in advance on invoices it has already issued. Each invoice acts as collateral and therefore personal assets are not at risk –  export invoice finance is a very effective way to ensure a robust cashflow for SMEs to see them through and far beyond any Brexit challenges they are facing. 

Whilst there is a Government supported General Export Facility currently available, this lending scheme has a strict criteria to meet, neither is it flexible, nor does it grow with a business. It is also a one-off loan payment scheme that doesn’t support ongoing cashflow needs.  What’s more, many SMEs have been put off by the complicated application process; fearing they will be refused funding and it negatively impacting their credit score.

• Cashflow is King - without it over 50k SMEs fail each and every year.

Late paying customers put SMEs at risk and now with the additional challenges and charges Brexit has brought to SMEs importing and exporting, cashflow and working capital is King. An SME with an invoice finance facility does not have the stress or burden of late paying customers because they are paid
within 24hrs!

Whether your business is large or small, a newly launched business or established company, there are many providers actively willing to provide an Export Invoice Finance facility – guaranteed!

• Start getting paid today by applying for your invoice finance facility today!

Call our Founder and Managing Director, Carole Roe, directly today on 07785 596053 or email on carole@capitalcorporate.co.uk