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 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 82 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.” To read more, visit