Clearview North October 2013 - Issue 143 | Page 82

BUSINESSNEWS

DIRECT LENDING SCHEME LAUNCHED
TO SUPPORT UK EXPORTERS
A new lending scheme will help
overseas buyers purchase the
goods of UK exporters.
The Direct Lending Scheme has
been developed by UK Export
Finance, the Government’s export
credit agency. It will support
exports where buyers need loans
of up to £50 million to finance
the purchase of capital and semicapital goods and services from
UK exporters, but have been
unsuccessful in obtaining an export

credit loan from the banks. The
new demand led lending scheme
will mean more foreign buyers can
access support to buy products
from UK exporters.
The Chancellor announced the
£1.5 billion Direct Lending Scheme
in the Autumn Statement last year.
This is the first time in UKEF’s
history it will be able to offer this
type of support.
Lord Green, Minister for Trade
and Investment said: “Exports

play a vital role in rebalancing our
economy, and where the customers
of British exporters are having
difficulties securing export finance
from other sources, UK Export
Finance can now assist by providing
loans through the Direct Lending
Scheme.”
Under the Scheme, UK Export
Finance will provide an export
credit loan directly to an overseas
buyer or borrower. It will directly
negotiate the terms and conditions

of the loan, disburse funds against
the manufacture and supply of
the goods and services under the
respective export contract and
manage the repayment of the
loan.
The Direct Lending Scheme is
now open to applications.
Read more at
www.gov.uk/government/
publications/direct-lendingscheme

ACCOUNTING RED TAPE CUT FOR
SMALLEST UK COMPANIES
Measures to reduce burdensome accounting
red tape for micro-businesses have been
confirmed by Business Minister Jo
Swinson. In the government response to
the consultation on how best to implement
the EU’s Micros Directive, the UK’s 1.5
million micro-entities will now become
exempt from certain financial reporting
requirements.
They are currently subject to the same
financial reporting rules as other small
companies. However, responses to the
consultation, which ran earlier this year,

showed that this was an unfair burden for
micro-entities relative to their size. As a result
of the changes, micro-entities will be able to
prepare and publish much reduced financial
statements.
They will now be able to draw up an
abridged balance sheet and profit and loss
account. They will also continue to be exempt
from the requirement to file the profit and loss
account with Companies House.
Business Minister Jo Swinson said: “Thriving
micro-businesses are a vital ingredient for a
stronger economy. However, because of their

size they don’t always have dedicated finance
teams behind them. We therefore need to
make sure that they can focus on growing their
business, rather than completing unnecessarily
detailed paperwork.
“The measures announced are just one of
the ways we’re cutting bureaucracy, letting
micro-businesses get on with running their
enterprises and creating jobs.”
The changes will apply to financial years
ending on, or after, 30 September 2013 and
related accounts filed on, or after, the date on
which the changes come into force.

SCOTTISH INDEPENDENCE COULD
BE COSTLY TO BUSINESS
The new President of the CBI has told
business leaders that Scottish independence
could be costly and create “significant
economic dislocation.”
Speaking at the CBI annual dinner in
Glasgow in September, Sir Mike Rake said that
the move could impact businesses on both sides
of the border.
He said: “The CBI is not convinced of the
economic case for independence and has asked
some important questions of the Scottish
Government. These need to be clearly answered
so that the Scottish electorate can make their

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OCT 2013

decision with full knowledge of the potential
business and economic implications of
independence.
“The economic implications of independence
published by the Treasury raised serious
questions around the costs of independence,
such as maintaining different cross-border tax,
regulatory and legal systems, as well as and the
significant issue of currency.
“What would be the implications of
independence on our unified labour market,
integrated infrastructure and our catalogue of
well-honed business arrangements, and our

position in the European Union? That’s why
it is so important for the Scottish Government
to fully respond and we look forward to the
publication this autumn of the independence
white paper.”

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