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What Is Overseas Market Development Funding?
Overseas market development grants can help businesses who want to broaden their horizons and expand into potential foreign countries with activities including trade visits, access to export finance and translation services.
An overseas market development funding injection can help businesses look into exporting their products and services into new foreign markets to help with expansion plans rather than focusing solely on the local domestic UK market. This funding can make it easier to expand their horizons overseas compared with if they were relying on just their own existing financial resources.
More often than not these overseas market development funds come from a Government source, local authority or from an industry body specialising in a particular product. In many cases government, local authorities and industry bodies have an interest in encouraging British products to be exported into overseas markets to help promote the overall UK brand. They will regularly organise groups of similar businesses and send them on fully funded overseas market visits to showcase their products and services in countries where there is an identified interest for those types of goods. There is also a vested interest in allowing potential first time exporters to receive a cash injection so they can run feasibility studies to help identify which markets they could export their products and services to. Existing exporters may need access to working capital quickly in order to fulfil an export contract which is larger than they are used to.
Who Are the Main Funding Providers?
Compared with other domestic funding areas there are actually a range of different specialist funding and other export support types available from a number of different provider types, which are outlined below.
Grant providers
Local authorities make up the bulk of grant providers for overseas market development where they can identify specific needs and challenges when it comes to taking strong business offerings from the local area and giving them the opportunity to showcase their products and services abroad. There are a few national grant schemes provided by Government agencies or other business enterprise or industry support organisations.
Loan providers
There is also regional loan funding available from providers such as FW Capital, Mercia Asset Management, Maven Capital and SWIG Finance who run schemes for different areas, such as London, Northern Ireland, Midlands, Cornwall and Yorkshire. This funding can be used for eligible costs towards overseas market development activities, such as export finance and trade visits. This type of funding is part of more generalised debt finance loans that covers multiple purposes rather than specific to export activities.
Export Guarantee and other export funding providers
The UK Government provides a financial risk backing facility to UK and certain international banks and other funding providers that allows them to lend money to British firms involved in international trade as part of an export guarantee. This type of funding includes a general export facility, export working capital and a bond support scheme. Funding providers include Santander, Barclays, HSBC, Lloyds, Natwest and Royal Bank of Scotland.
Export support providers
Innovate UK also offers fully funded industry specific overseas market visits for businesses involved in innovative sectors to promote UK goods and services as part of the Global Business Innovation Programme. Countries that are participating in the programme include Germany, Switzerland, United States and India. High tech sectors that have market visits taking place so far include AI, quantum technology, digital health and semiconductors.
What Do You Get The Funds For?
Businesses may seek grants, loans or other export finance or support to pay towards a range of different overseas market development activities, which are briefly outlined below.
- Market Visits – Funding to support participation in trade missions, conferences, or industry events held in target overseas markets. This allows businesses to connect with potential partners, gather market intelligence, and showcase their products/services.
- Overseas Market Introduction Service – Funding to access government-supported programs that connect businesses with qualified in-market experts and advisors. This helps navigate foreign regulations, find distribution channels, and build local networks.
- Export Credit Guarantees – Funding to protect against the risk of non-payment by overseas buyers when exporting goods or services. This allows businesses to secure financing and expand into new markets with greater confidence.
- Export Finance – Funding to access loans, guarantees, or other financial instruments at preferential rates to facilitate international trade activities. This supports working capital needs, pre-shipment financing, and other aspects of exporting.
- Market Research – Funding to conduct in-depth research on specific overseas markets, including competitor analysis, consumer trends, and regulatory landscape. This helps businesses assess potential, develop effective entry strategies, and adapt to local requirements.
- IP Advice – Funding to access legal and technical expertise on protecting intellectual property (IP) rights in overseas markets. This helps businesses secure patents, trademarks, and other IP assets and avoid infringements.
- Translation Services – Funding to cover the cost of professional translation services for marketing materials, business documents, and website content into the target language of new markets. This ensures clear communication and effective engagement with local audiences.
- International Social Media and SEO – Funding to develop and implement targeted social media strategies and search engine optimisation (SEO) campaigns for overseas markets. This helps businesses reach their target audience, build brand awareness, and drive engagement in specific foreign regions.
- Consultancy and International Commercial Services – Funding to access expert advice and guidance from specialised consultants with extensive experience in overseas market development. This covers aspects like market entry strategies, cultural considerations, and navigating international business transactions.
What Grants Are On Offer?
Here are some examples of grant funding types available
- Business Growth and Development Grants – Many general business growth and development grants offer allowable expenses to include activities that help facilitate overseas market development activities.
- Export Training Grant – Funding available to help business owners and managers learn about requirements, details and opportunities relating to sending goods overseas to help get them export ready.
- Trade Development Grant – Funding relating to activities that assist businesses in developing their overseas trade activities, including carrying out feasibility studies, attending trade fairs and other market visit activities for export.
- Overseas Touring and Showcase Fund – Funding relating to the creative sectors, such as music, arts and film and taking British made media and then showcasing it in international markets, such as overseas film festivals or allowing international tours.
- Export Grants – Funding that aims at providing working capital in order to physically get products shipped overseas and sold in international markets.
- Trade Fair Travel Support Funding – Funding to allow businesses to attend overseas trade fairs and exhibitions and other market visits in order to network and promote their goods overseas. Funding may also be available to help with costs for flights and paying for travel accommodation.
What Export Guarantee and other Export Finance Is On Offer?
Here are some examples of other export finance types available
- Export Working Capital Scheme – A UK Government backed loan provided by major banks that provides exporters with working capital in order to fill overseas export trade contracts.
- Bond Support Scheme – A UK Government backed bond provided by major banks that provides funding to exporters or suppliers to exporters that help them fulfil an export contract, irrespective of their export trading history.
- General Export Facility – A UK Government backed scheme that aims to enable UK exporters to access trade finance facilities at UK and international banks if at least 20% of their annual turnover is made up of export sales.
How Much Funding For Project Costs Is Typically Available?
Every single scheme is different, for many lower cost overseas market development grants it is possible to get up to 100% of the costs covered. Other higher costing export projects can see businesses expected to provide a contribution of funding from other sources, ranging from 40% of costs covered by the grant up to about 80% of the costs covered. In many cases this is to ensure that the grant applicant is otherwise financially solvent and serious about taking on some of the financial risk that is involved in export activities.
From the current set of grants available in the UK for overseas market development, a total amount awarded as a grant ranges from £1,000 for basic overseas market feasibility costs up to over £200,000 for larger scale long term export and overseas market expansion plans.
For export guarantees and other export funding as there are large scale exporters in the UK repayable funding of up to £25 million is available. However, this funding is fully scalable and there are lower amounts available for smaller and medium sized exporters.
Who can apply?
First time exporting sole traders are able to apply for grant, loan and export finance for overseas market development activities, up through small to medium sized businesses and large corporations.
How do you apply?
As the criteria and requirements of overseas market development funding is complex and varies on individual business needs, grant, loan and export finance providers in this area often invite those interested to submit an initial enquiry and then have a discussion based on their current position in the exporting journey, rather than provide a generic application form online to fill out and submit straight away.
Prospective applicants can compare different funding provider options and filter based on their own needs by reading details of what each scheme will fund, what geographic location is covered and the eligibility criteria to apply.
Once both an applicant and funding provider are satisfied that their needs match up, then a more formal application process is issued and the usual financial due diligence checks are carried out and funding is either awarded or a decision not to fund comes with an explanation, so that businesses can take on board feedback against future applications.
When do you apply?
In typical cases of funding applications there is usually a deadline that businesses must adhere to so that limited funding can be processed and applicants can then be considered to be awarded funding.
In many cases, funding has been made available to promote export activities for UK firms on a longer term basis and that means that these overseas market development funds stay open far longer than others. In many cases funding is available for years to ensure a number of businesses are able to carry out export activities to their full potential across multiple markets. This is particularly important in the challenging post-Brexit environment where access to certain overseas markets is now more difficult, in particular getting goods into the EU.
When it comes to the actual stage in the overseas market development process for a business you would typically apply for the funding before any overseas market development costs have been spent. The reason for this is because most funding providers will only pay for ongoing overseas market development costs that have been approved by them and not for old liabilities from the past.
Want the Full Set of Overseas Market Development Schemes?
If you want the full set of overseas market development grants available, you can use our Grants Matcher, or if you want to save yourself the time and effort then tell us about your project funding needs and let us do the work for you.
