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Business loan to aid export competition
Reported on Mon, 12 Jun 2006
The UK's trade gap widened in April, with conditions made harder for businesses looking to export, according to new data, but firms hit by the difficult climate could take out a business loan to raise company performance.
According to the Office for National Statistics, the British trade deficit increased to £5.75 billion over May, rising up from its April level of £5.7 billion.
This trend confounded the predictions of analysts who had anticipated the gap would remain stable over the month, but the change has been linked to the continuing strength of sterling, producing a fall in exports.
Overall exports from the UK fell by a value of £600 million over the month, with the higher pound making British goods more costly for the overseas markets.
Some hope has been offered by news that the value of goods exported to Eurozone countries continues to surge forward, but analysts warned that businesses were having to compete in turn against an increased number of imports on offer to UK consumers.
Taking out a business loan could help to keep smaller firms reliant on exports financially afloat while they readjust their company strategy.
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