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Building bridges to global markets starts at home.

ALL eyes are on local manufacturing and its role in driving economic growth in the UK. But for this sector to fully play its part in the recovery, it needs to first enhance its standing in the global trade arena.

According to the EFF, the manufacturers' organisation, local companies that export achieve stronger financial performance and are more likely to stay in business. Over a third of companies attribute significant growth to exporting, and for around 38% it has delivered a level of expansion not otherwise possible.

But like anything, the first step is often the hardest. Moving into offshore markets can be a complex process fraught with risk. But with the right backing and financial framework, exporting can go a long way to securing local business's place in a competitive global market.

Lloyds Bank Commercial Banking is committed to providing UK businesses with the financial and risk management support they need to start making that investment in their future. With partner networks in over 100 countries, our local trade teams ensure they have the right strategies, banking solutions and working relationships in place so their clients can export with confidence. Here's how it works.

Understanding business needs | By conducting an initial timeline assessment, we can clearly see a business's full trade cycle - where it buys from, sells to, and its true supply chain. From that we can examine the way it brings goods into the marketplace, the selling mechanisms in place, and identify funding gaps we can help fill.

Finding the right solutions | Every business is different, so we're committed to providing bespoke financial solutions to help businesses achieve their global ambitions - both in risk management and working capital solutions.

Risk management |We help clients understand the broader commercial environment and local economic conditions so we can work together to mitigate any financial and credit challenges. Examples of trade services which can serve to minimise risk associated are: Documentary Collections - sim-|plifies payments between partners.

Letters of Credit - eliminates |country, counter party and bank risk by adding the Bank's agreed understanding to that of an issuing bank. Guarantees and Bonds - supports |a company's ability to perform under contract and underpin new business wins.

Foreign Exchange Services - miti-|gating exchange rate risk by customising pricing displays to help alert optimum trade times.

Working capital management | International trade can put pressure on working capital before, during and after shipment. To secure and optimise cashflow through the trade cycle, we work closely with businesses to develop working capital solutions designed to plug any funding gaps, including: Supplier Finance - delivers earlier |payment of invoices.

Pre-Shipment Finance - provides |capital to produce and ship goods.

Post-Shipment Finance - gives |capital to fund further operations and contract.

Import Finance - provides |short-term finance to pay suppliers promptly, even when waiting for onward sale of goods.

Invoice Financing - Improves |credit management and frees up cashflow to support business growth Backing business with experi-|ence, scale and knowledge Businesses with global ambitions need the support of a bank that truly understands its needs. At Lloyds Bank, we have the experience, scale and knowledge to help build these new bridges into global markets.

Through 2013, we remained focused on both manufacturing and supporting exports - our commitments are in line with government aspirations to re-establish the UK economy through overseas trade. And with a target investment of PS4bn of lending to the sector by 2017, our commitment to driving productivity, diversification and innovation within the manufacturing sector is for the long haul.

CAPTION(S):

Peter Egan, |Regional Trade Finance Director at Lloyds Bank Commercial Banking
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Title Annotation:Features
Publication:The Journal (Newcastle, England)
Geographic Code:4EUUK
Date:May 22, 2014
Words:593
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