10.01.08
How do I find the right bank to support my international business?
With the current credit crisis, one question that continues to arise is ”Is my money safe?” That certainly is a major consideration for personal banking and it is to a degree also important for international business.
If you look at the banking landscape, there are lots of banks offering services — and that works to the advantage of the international business person. Your local bank where you do your banking and credit may be fine to finance the domestic side of your business but you need a bank with global reach for international work. And more importantly, you need a bank that has experience in your principal export or supplier markets. A bank that has a good European network but few relationships in Asia won’t help you with letters of credit to pay your Chinese suppliers.
My strategy would be to have a number of banking relationships. You need a key bank in your domestic market to provide lines of credit and for working capital needs. You’ll need another bank or banks to handle your international transactions — currency transactions, letters of credit, and a resource for the local market. In many ways, the function as a resource about the local market is the most important. The bank can provide market intelligence as well as serve as a referral resource.
Lastly, if you are not satisfied with your bank, look around. The competition in the marketplace will serve you well.
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