BANK PROGRAMS CAN HELP YOU SUCCEED SELLING OVERSEAS
U.S. businesses of all sizes face an unprecedented opportunity to succeed in international trade. Emerging markets have created whole new worlds of middle-class consumers, accompanied by rising demand. At the same time, the Internet and other technologies have made the world smaller and global distribution easier than ever.
For those businesses that want to broaden their customer base, selling to overseas markets is a compelling prospect. Many know that exporting can improve their sales significantly while providing a hedge if demand in the United States weakens.
Know the risks
Exporting requires careful planning since international trade poses certain risks. Exchange-rate volatility can make pricing difficult, and foreign, legal and regulatory environments are often quite different. Culture and language can pose barriers as well.
New exporters must also overcome regulatory obstacles at home. The situation for export trade has eased considerably over the past decade, but it can still take months to make preparations and complete all of the requirements.
Bank and government programs can help
Fortunately, some banks offer a range of trade finance tools and solutions to do business in overseas markets. Some of these programs work in tandem with government agencies, including the Export-Import Bank of the United States (Ex-Im Bank), the Department of Commerce's U.S. Commercial Services and the Small Business Administration.
- Foreign currency management strategies and international payments services to help mitigate risk and improve liquidity
- Government-guaranteed export trade lending to provide financing to fill large foreign orders
- Letters of credit and buyer financing to support exports
- Government-guaranteed export receivable insurance to reduce the risk of nonpayment
- Bankers' acceptances, also known as time drafts, to guard against changes in credit terms and pricing because of competitive pressures
Your bank as export partner
For businesses with little experience with trade finance, products and programs like these are only part of the solution. Many look to their banking experts to play an active role in helping them gain a footing in overseas markets.
Banks that excel in this role have worldwide expertise. They help their clients understand local business practices, including sales methods and typical terms of trade. They also make introductions to overseas banks, prospects, suppliers, and business service providers in foreign countries.
The best banks will offer you a comprehensive approach to international trade finance, one based on a solid understanding of your concerns, needs and goals. They will serve as experienced guides, helping you step by step as you find your way in an unfamiliar world.
City National Bank offers a range of products and services to help your business export to foreign markets. In particular, consider City National Bank's export finance and currency management services, which can provide the financial resources and tools you need to improve your global potential.