International companies operating in foreign markets can power the growth and performance of their businesses by exploring emerging markets, taking advantage of untapped business opportunities and benefiting from pro-business regulatory environments.
However, there are also several possible pitfalls associated with international business, creating a certain degree of risk that could lead to serious consequences if not managed properly. Foreign exchange rates can fluctuate, making it difficult to deal in foreign currency, and navigating capital markets might pose problems for foreign investors.
Fortunately for international businesses, there are cross-border financing solutions and services that can help overcome those challenges and mitigate risks associated with doing business across borders.
Financial institutions offer cross-border financing arrangements to help businesses participate in international trade — or establish foreign subsidiaries — by providing a source of funding that enables them to compete globally and conduct business beyond their domestic borders.
It is useful for multinational firms to conduct international trade without needing to hold a large reserve of working capital. Cross-border financing has risen in popularity over the years with the help of globalization and the rise of emerging economies.
At Cathay Bank, we offer cross-border financing solutions so you can take advantage of opportunities in foreign markets.
Reach out to the team at Cathay Bank to speak to a financial analyst and learn more about our cross-border financing options.
This article does not constitute legal, accounting or other professional advice. Although the information contained herein is intended to be accurate, Cathay Bank does not assume liability for loss or damage due to reliance on such information.