In honor of International Trade Month in May, First National Bank of Omaha (fnbo.com/global, FNBO) trade experts are welcoming questions and providing advice on how small and medium-sized businesses (SMBs) can leverage financial tools and information to compete in global markets. Because SBA surveys reveal that 58% of SMBs have exported goods and half of the remaining 42% would be interested in selling products abroad, here are seven tips to help businesses expand internationally:
Know Your Market: Understand the target demographic, cultural nuances and demand for your product before venturing into new territories.
Learn Trade Regulations: Familiarize yourself with export and customs regulations and government sanctions programs.
Understand Costs: Consider the costs of logistics, taxes and duties associated with exporting, and learn how to calculate country-specific costs.
Secure Export Financing: Explore government programs through EXIM Bank, the Small Business Administration and USDA for working capital support.
Payment Methods: Choose appropriate payment methods to balance security, convenience and cash flow needs.
Manage Foreign Exchange Risk: Fluctuating currencies can impact costs, so develop hedging strategies.
Choose the Right Banking Partner: Work with a bank that understands the nuances of international trade and has the technology to facilitate
these transactions.
The trade experts at FNBO, Member FDIC, can help you thrive in the global marketplace. Learn more at fnbo.com/global.