Finding avenues for business growth is all the more important during tough economic times, and with the UK currently in the biggest double dip recession for 50 years this is clearly going to be something on the minds of the nation’s SMEs. In the wake of the Eurozone crisis it seems that more UK businesses are training their sights on exports beyond our immediate neighbours, using exports as a way to work themselves towards recovery and growth.
British businesses are responding to the weak economic climate at home and the rest of Europe by looking elsewhere for growth opportunities. The pound is at its strongest against the euro for nearly four years, prompting businesses to go further afield and look to emerging markets for customers.
Recent figures have shown that non-EU exports are exceeding those to the EU for the first time ever. Exports to China rose 26% in just three months in the run up to May, a huge increase on the same period last year. On the other hand, exports to France dropped by 9%, Germany 2% and Italy a huge 20%, showing the fall in demand within Europe and the need to go to other markets.
Instead of worrying about this fall in European exports, businesses are upping sticks and moving their export activities to Asia and South America. China, Brazil and India are key markets that are helping many businesses to cope with reduced demand in both the UK and across Europe. Conversely, the troubles with the euro has meant that some businesses are benefiting from buying cheaper goods and services from European companies.
Exports are something that even small businesses can take advantage of. If you need to find some extra cash flow to allow your business to take advantage of more buoyant markets, then invoice finance can help. Not only can you unlock the cash tied up in unpaid customer invoices, but you’ll also be able to improve cash flow without taking on any more expensive debt.