Advantages of Doing Business in the Local Currency
Gaining a competitive advantage
Although U.S. companies have historically believed that negotiating international agreements in USD insulates them from exposure to currency volatility, it also puts them at a competitive disadvantage compared to companies that transact in local currency.READ MORE
Discover how to reduce the negative impact of foreign exchange volatility on your earnings and cash flows.
If revaluations of foreign denominated accounts receivable/payable are negatively impacting your earnings, then join PNC’s foreign exchange advisors as we explore strategies to better manage this risk.
Learn about global trade agreements, economic conditions in Canada and payment modernization.
Learn about global trade agreements, with particular emphasis on Canada, as the United States-Mexico-Canada Agreement comes into focus. We also address other relevant developments in Canada, as Payments Canada is currently overseeing a major modernization initiative of the Canadian payment rails.
Canada is working towards payment systems that will be familiar to U.S. companies to further facilitate cross border transactions.
U.S. companies doing business in Canada will soon have the payment functionality that they are accustomed to at home. Here are 10 tips to help smooth the way for U.S. companies considering expansion in Canada.
Capital leases offer more than stabilized cash flow and preserved capital. Find out about unique payment structures.
If your business encounters pressure on cash reserves, or you want new and creative opportunities to turn your treasury department into a liquidity generating machine, consider capital leasing.
With a trilateral agreement remaining intact, there is less risk of significant economic costs for all three countries.
A surprise during the approval process is something that could drive a multi-percentage-point move in the Canadian dollar, Mexican peso and likely many other currencies that react in times of global uncertainty. Could a dollar-cost averaging hedging approach benefit your company?
Real-Time Payments (RTP®) has the potential not only to offer faster payments but also to improve the way you communicate with tenants and vendors.
Real-Time Payments (RTP) has the potential not only to offer faster payments but also to improve the way you communicate with tenants and vendors. View this webinar replay to learn about this new technology and how it will affect your business. RTP is a registered trademark of The Clearing House Payments Company, LLC.
This webinar focuses on the evolution and ongoing development of emerging payment channels.
Digital innovation is driving transformation in the treasury management industry — the momentum is real, and new opportunities are emerging. Unlike other activities that have been revolutionized by modern technology, the U.S. payments space has remained largely unchanged. Until now, that is. PNC Public Finance Disclosure
Cash balances remain high, acting as a buffer against market uncertainties, according to the 2018 Liquidity Survey by the Association of Financial Professionals.
The Association for Financial Professionals (AFP) conducts a survey each year on current and emerging trends in organizations’ cash and short-term investment holdings, investment policies and strategies. Here are some key statistics from this year's study.
Smart contracts can unlock the power of blockchain technology, providing a platform that can remove friction, reduce paper and speed transactions across many industries.
Could smart contracts benefit your business? Smart contracts are blockchain-enabled contracts that have the potential to revolutionize the way we do business. Similar to paper contracts, smart contracts define operating rules between parties, but a key differentiator is that they can also systematically enforce those rules.
A see-saw of tax, regulatory and trade decisions has kept business leaders shifting back and forth from optimism to caution. The result is that cash balances remain high.
The Association for Financial Professionals (AFP) conducts a survey each year on current and emerging trends in organizations’ cash and short-term investment holdings, investment policies and strategies. Here are some key statistics from this year’s study.
Covenants are additional terms in a loan agreement, typically used to set financial guidelines for a company.
Covenants are additional terms in a loan agreement, typically used to set financial guidelines for a company. Can you use your covenants to enhance the success of your business?
Taking the type of equipment, financial state of the business and other factors into account can deliver bottom-line benefits.
Are you spending enough time analyzing how to pay for that vital acquisition? Taking the type of equipment, financial state of the business and other factors into account can deliver bottom-line benefits.
AR and VR enable users to interactively use computer-generated information and data.
The introduction of artificial intelligence (AI), machine learning, robotics and other cognitive tools into the workplace ushers in a new age of industrial automation. It promises greater efficiencies, reduced costs, higher profit margins and other tangible benefits to companies investing in these technologies.
There are many similarities between Canadian and U.S. banking, but these four differences could affect the way you do business.
Due to its close proximity and cultural similarities, Canada is a natural first step for U.S. companies considering international expansion. However, while there are many similarities between Canadian and U.S. banking, there are also many differences that could impact the way you do business.
Is your company prepared to repatriate large amounts of foreign earnings? This webinar will provide valuable, real-time insights for key decision makers.
The Tax Cuts and Jobs Act incentivizes U.S. corporates to repatriate foreign earnings. Is your company prepared to do this from a policy, risk management and execution standpoint? Join PNC’s foreign exchange advisors as we discuss the potential impact of tax law changes on your business.
How can faster payments support your objectives of meeting payment deadlines, improving customer satisfaction, reducing costs, and streamlining your internal
Faster payments can help you meet deadlines, improve customer satisfaction, reduce costs, and streamline your internal processes. The first step is to understand emerging payment types and how they can answer your business needs.
It may be helpful to think of your treasury management provider as a specialist who collaborates with you to help optimize the value of your working capital.
There is no one-size-fits-all approach to treasury management. And while upfront costs and expenses for technology and professional support need to be considered, the return on that initial investment is likely to be positive, both short and long term.
Whether you are buying or selling across borders or entering a new international market, you’re likely to face credit, country, counterparty and currency risks.
This webinar outlines the key instruments for mitigating risks, examines strategies for navigating the complexities of international trade, demystifies industry terminology and clarifies components of trade documentation.
The equipment financing decision goes beyond determining how to pay for an item. It is a decision that needs to be made in the context of a company's overall financial situation.
There are many factors to consider in deciding the best option for obtaining the equipment businesses need to move forward. Here are six of the top issues.
Discussion includes a look-back at the impact of these dynamics during the first two months of 2018 and expectations for longer-term effects.
Many U.S. companies continue to actively seek ways to increase energy efficiency.
Researchers have found companies with high environmental, social and governance ratings tend to outperform the market in the mid- and long-term ranges. As many boards and corporate executives are finding, sustainability initiatives can be very good for business.
While interest rates have been low for years, rising interest rates bode well for overall economic health — and may even hold good news for businesses.
Understanding and capitalizing on the opportunities that exist in rising rate environments can make businesses stronger. Focusing on the next best moves for your business, both in terms of borrowing and strategic investment, can help you stay ahead of the competition and make the best decisions for the future of your organization.
Any company looking to do business in China needs to understand the differences and nuances of banking in China in order to structure banking relationships for success.
This whitepaper focuses on the Top 10 concepts and common banking practices that are applicable to companies conducting business in China. While this is not an exhaustive list, the aim is to provide an overview and some of the essential knowledge to get started as a treasury practitioner.
Accounts receivable remains the lifeblood of most companies. Here are some of the latest techniques and technologies for improving working capital performance.
New technologies allow companies to better integrate payment streams. This allows the business to benefit from controls visibility and technology not only with traditional paper receipts through a traditional lockbox but also electronic payments through a virtual lockbox or an electronic bill presentment and payment system.
You can’t afford to wait for clarity around Brexit. Learn about potential impacts on your business.
The ability to remain flexible and quickly implement changes based on potential Brexit outcomes will be an advantage in this time of uncertainty. This white paper is a resource to assist you in analyzing and planning for business after Brexit.
Evaluate investment options and anticipate future rate changes in order to set an optimal cash position and strategy.
Many financial decision-makers see today’s rising rates as either a brand-new phenomenon or an operating environment that they haven’t faced for more than a decade. Corporates will be required to analyze their short-term cash and cash position differently in order to prepare for the long haul.
The convergence of mobile technology and digital commerce is leading to real time payment innovation around the world.
Cash balances continue to remain high; there’s a large investment in bank products and organizations have no plans to invest in prime money market funds. Could that change?
While much of the talk around money funds asks why corporates left, AFP’s survey attempted to dig a little deeper. We asked practitioners what might entice them to come back. Would it be a stable NAV? Is it a certain number of basis points? Is it the uncertainty around it?
Real-time payments can help accelerate payments to speed up delivery, improve incoming cash flow or support cash on delivery payment terms.
Real-time payments represent a new phase in the evolution of digital payments. In the U.S., PNC Bank, along with other members of The Clearing House, is leading the way with the development of a Real Time Payments network -- the first new U.S. payment network in over 40 years. It’s a totally new payment type.
Changes to the NACHA Operating Rules, which govern the use of ACH, now enable ACH participants to speed delivery of more time-sensitive ACH transactions.
Same Day ACH has been especially beneficial when businesses experienced a delay in creating their direct deposit payroll files. Activating Same Day ACH allowed the files to be processed immediately and their employees were paid on time.
The U.S. dollar has been experiencing increased volatility. Find out how to manage the impact of the changing value of the dollar and other currencies.
What is the best way to develop a risk management plan for your business? What resources are available for assistance with the financial and market variables that will impact a risk management plan? What is the best way to identify the appropriate hedging instruments to use? What are the outcomes of an effectively implemented risk management plan?
Are you facing international cash management challenges without uniform internal systems – and with thinly-spread local staff?
According to a 2016 Ovum survey of 200 treasurers in 23 countries, only 13% of multinational corporates can see their real-time global cash position. Treasury teams need to achieve a greater degree of centralization and regain control of their company’s most important asset: cash.
When you plan for the cost of new equipment, don’t forget to plan for the significant portion of the total equipment expense called “soft costs.”
Finding a lender with a strong specialty in equipment financing and who understands more than just the invoice amount is key. As long as soft costs stay within certain parameters of the total investment, you can fold them into your affordable monthly equipment payment, preserving your cash for more important needs.
Trade negotiations, including changes to NAFTA and the uncertainties presented by Brexit make the need for foreign exchange risk mitigation more urgent than ever.
Evaluate current risk management practices, including the establishment of a hedge policy. Ensure that your internal policies and controls correctly account for risks. Update your management reporting systems to correctly list your FX exposures and hedging activity.
Hedging allows treasurers to protect profits and cash flow by locking in revenues, costs and global intercompany transactions, but accounting treatment can be uncertain.
Equity markets are highly volatile. Global currency markets have also been experiencing larger than normal swings. Fortunately foreign exchange hedging products such as forwards and options are available to protect against the potentially adverse impact of currency fluctuations.
Companies must implement secure and efficient payment processes in the face of a complex and an evolving web of customs, laws and regulations that varies from country to country.
Best practices cover payment instructions, understanding local rules, tax implications, using local currency, and collaborating with your bank.
Even cross-border payments sent via SWIFT will land in a local payment system where unique banking practices may delay funds’ availability and result in fees to the beneficiary.
Companies need to implement secure and efficient payment practices in the face of customs, processes and regulations that vary from country to country. To avoid delays and extra costs, understand payment rules, regulations and networks.
Is your suppliers’ reluctance or refusal to accept electronic payments a barrier to increased usage? Here are some tips for driving increased commercial card acceptance.
Integrate supplier calls into your Accounts Payable (AP) department to introduce commercial card as a payment option that creates benefits for both parties. Incorporate commercial card payment information into standard communications (e.g., emails, check communications) with suppliers. Contact suppliers regularly to engage them directly on commercial card acceptance.
Between 2009 and 2015, commercial card volume almost doubled, as more companies switched from checks to electronic payments.
However, the rate of growth in commercial card volume has been slowing in recent years and fell to just 8% in 2015. This slowdown can be attributed to a number of factors, including organizational inertia, reluctance to overhaul legacy payment systems, or the belief that suppliers will not accept electronic payments.
PNC’s economists forecast that the Federal Reserve will continue to raise interest rates throughout 2017 and beyond.
In order to reduce the impact of rising rates on borrowing costs, companies should develop and implement a comprehensive plan to manage their interest rate exposure. PNC speakers provide a perspective on how external factors may affect your financing costs and what you can do to regain control.
One of the operational areas that offer considerable potential for technology-based transformation is the payments system.
Your financial institution should support you in recruiting suppliers to accept electronic payments, continually monitor the effectiveness of optimization efforts, identify issues with supplier recruitment, and activation of suppliers who have agreed to accept electronic payments.
Today’s rising interest rate environment may make it possible to improve your return on short-term cash.
Investment policies should include formalized forecasting and contingency plans to prepare key decision-makers for unexpected events. Contingency plans should include a scenario analysis that details events of varying risk or magnitude and how the company will react. For example — divest, stay the course or become more conservative.
Corporate financial managers must consider the impact of interest rate forecasts, future GDP estimates and potential tax reform on corporate cash strategies.
A number of short-term investment options have become part of the consideration set because of the rising market. They include variable net asset value prime money market funds, separately managed accounts and conservative ultra-short bond funds.
Consolidation is a key growth strategy. A robust agriculture equipment sector includes the financing tools and mechanisms farmers need to access state-of-the-art equipment.
Agriculture has been central to Canada’s economy for its entire existence as a country. From the fruit orchards in the West, to the grain and wheat of the Prairie provinces, to the wine regions in Ontario and British Columbia; from the world-class honey and maple syrup, to the dairy and meat producers across the nation, Canada is a significant food and crop producer.
U.S. businesses today may need foreign exchange services if they buy product from overseas suppliers or if they sell product internationally and have foreign currency receivables.
U.S. businesses with a global footprint need an efficient, low-cost method to make and receive payments in currency other than U.S. dollars. Whether a business has foreign currency needs on an ongoing or ad hoc basis, PNC can help manage the impact of exchange rate fluctuations on future cash flows and profitability.
Energy is largely an export industry in Canada. More than a third of the oil, gas and coal production and more than 10% of hydroelectric power exported to the United States.
The energy industry in Canada comprises oil and gas, mining, renewables, and power production and distribution. Each has unique features, including regulatory controls, and the level of involvement by government. They also differ from province to province, with various controls and incentives in place to encourage or discourage investment and foreign involvement.
Opportunities abound for creative financial institutions with the tools needed to partner with government because much infrastructure activity will be funded by deficit budgets.
Infrastructure spending will be roughly aligned with the size of the provinces and the current infrastructure deficit.Key provinces to watch include Ontario, Quebec, British Columbia and Alberta. These four provinces account for 85% of the population and are therefore most likely to get the vast majority of the spending.
Cost structures may allow for increased margins.Time zone alignments and ease of transport can be a significant advantage for U.S. firms with Canadian manufacturing centers.
The most significant and sophisticated hubs for manufacturing are in Ontario and Quebec. Primarily developed to support the automotive, aerospace, telecom and pharmaceutical industries, these hubs boast clean and safe facilities, and many of the manufacturing companies employ world class sophisticated and/or large-scale equipment in their processes and facilities.
Companies that can add value to wood products and have access to markets in place to sell the end products have good opportunities in this market.
The forestry industry in Canada is growing due to increased trade with, and demands from, China. As a result of recent disputes between Canada and the United States, Canada has developed new market channels, which are increasing the demand for softwood and specialty wood products. The industry has been slow to develop value-added wood products.
Three key areas of focus emanating from the new Administration and Congress are positive for the economy and growth: cutting taxes, infrastructure investment and less regulation.
As was revealed in the just-released 2017 AFP Risk Survey, one of the top three risk factors having the greatest impact on organizations’ earnings in the next three years was “U.S. political and regulatory uncertainty.”
Technological advancements have led to shortened product development times, faster products to market, better distribution systems and streamlined purchasing.
While banks and FinTech providers can at one level be seen as competitors, there is increasing recognition by both sides of the strengths and limitations each possesses. This mutual recognition of their relative strengths and limitations is leading to increased collaboration between the two.
FinTech’s significance is underscored by the exponential growth in venture capital investing in the sector in recent years.
Going forward, FinTech is expected to impact a broad mix of financial service categories, including payments. Many financial service providers are preparing for this new reality by making strategic investments in and partnering with FinTech firms, as well as developing their own solutions.
Distributed ledger technologies record transactions in a decentralized network. The record of each transaction is shared across a network of computers.
While FinTech firms are helping to accelerate the pace of technological advancement within the industry, banks are investing in new technologies to provide better/faster/cheaper and more secure services to their client base.
Along with consistent growth, U.S. insurance firms are facing pressure on their bottom lines due to increased competition, low interest rates and regulatory changes.
By automating claims payments, insurance firms can reduce their reliance on checks and add disbursement options including ACH, prepaid cards and even same-day or real-time mobile solutions. Insurance firms can also improve receivables processing as well by accepting premium payments and contributions to annuities or other investment accounts in a variety of formats.
Long a trusted resource for financial institutions, SWIFT also supports corporate treasurers as they face expanding roles and shrinking resources.
SWIFT provides messaging standards that define a common means of structuring data for a broad range of financial purposes, from cash management and foreign exchange to trade finance. Additionally, SWIFT provides a highly secure proprietary communication platform and products such as SWIFT FileAct, which supports the exchange of bulk files between corporates and banks.
Stocks and bonds are expensive relative to history, growth remains sluggish, and corporate earnings have been unable to gather sustainable momentum.
We remain in a difficult market to forecast, particularly regarding the complex interactions between what we see as the weak fundamental backdrop and how current monetary policy might affect the dollar, interest rates, and investor risk preferences.
Some of the considerations for U.S. companies doing business in Canada and the industries with the most potential; manufacturing, agriculture, forestry, infrastructure and energy.
Although Canada offers opportunity in most industries, there are some that have unique and specific potential today. Similarities between industries across the border, foreign exchange advantages and simply the growth potential of each sector within Canada are among them.
As e-commerce moves towards 10% share of total retail sales, mobile commerce is expected to grow exponentially in the coming years.
Widespread consumer adoption of payment technologies can lead to demand in the commercial space. For these reasons, trends in consumer payment innovation can be early indicators for changes in commercial payments.
The controls that come with the latest commercial payment methods enable CFOs, controllers and program administrators to exercise greater control over payment systems and practices.
The potential benefits associated with strong controls can be significant in terms of cost savings and peace of mind. Conversely, failure to implement appropriate payment controls can subject an organization to unnecessary financial risk.
You can find relief by improving management of invoice processing through payment.
Invoice automation can help you optimize the use of employee resources, significantly decrease the cost of processing invoices, help you capture vendor discounts more reliably and increase scale within your back office.
It's clear that corporations and individuals need to understand the risks and opportunities as an uncertain situation evolves.
Britain's Brexit vote upended expectations with 51.9 % of voters backing the "leave" campaign versus 48.1% backing "remain." The result sent shock waves through the markets and created an unstable political environment in the United Kingdom in the weeks following.
Chart provides detailed information on Money Market Fund regulation considerations at a glance.
Intended to preserve the benefits of money market funds while increasing transparency and strengthening investor confidence, new regulations effective in October 2016 will require a re-evaluation of your cash management strategy.
When outside capital is needed, good cash flow and working capital management will make it easier to find and less expensive no matter what the economic cycle.
Companies that make working capital efficiency part of their organization’s culture have the opportunity to generate more of their working capital internally, thereby lowering costs, improving their performance and boosting their competitive position.
Changes to the NACHA Operating Rules will allow ACH participants to speed delivery of transactions that are more time sensitive than traditional ACH transactions.
Employers who want more flexibility in timing payroll, insurance carriers committed to fast payout of claims and reimbursements, individuals who need to get money to family members quickly, and billers wanting to offer a same day bill payment option are just a few of the groups looking forward to Same Day ACH.
China’s dramatic growth in international trade has made it the second largest economy in the world. The Chinese Renminbi is now the fifth most common currency in world trade.
The Chinese government has undertaken a process to liberalize and internationalize its currency, relaxing rules to become more equal trading partners with other developed countries. This includes expanding the use of the Chinese Renminbi (RMB) for global trade settlement, encouraging a robust offshore RMB environment and liberalizing access to on-shore RMB accounts.
Around the world, the momentum behind the move to real-time payments (RTP) — or “Immediate Payments,” as they’re often termed — is unstoppable and growing.
The U.S. has been conspicuous in its absence from the list of countries embracing RTP. That’s changing fast, with a surge of activity and initiatives under way to bring payments in the U.S. up to speed with the rest of the world. These moves involve a broad range of players, and an approach specifically geared to the unique needs and requirements of the U.S. market.
Learn how to better manage intercompany payments, reduce transaction costs and improve intracompany reconciliation.
Multinational corporations face many challenges in managing growth across multiple continents, currencies, and accounting systems. Treasury managers can facilitate cross-border settlements among affiliates, increase productivity and generate cost savings with a multilateral netting solution.
In our fast-moving world, payment systems must evolve to keep pace. Quicker payout, more flexibility, better control and improved cash flow are what customers expect today.
With encouragement from the Federal Reserve, the industry is responding to the demand for faster payments. Three leading organizations are already rolling out new payment options.
Many companies have found growth opportunities elusive and are focused on maintaining operational efficiency.
The increasing speed of doing business, the rise of globalization, the continued drive to identify and capture efficiencies, and the need to optimize relationships with suppliers and customers are driving companies to incorporate new technologies into their business processes.
Companies must do their part in maintaining the integrity of the trade supply chain.
About 80 percent of illicit financial flows from developing countries are now channeled through trade-based money laundering (TBML), according to Global Financial Integrity (GFI), a research and advocacy organization.
There are several reasons that options should be a part of your risk management strategy. They provide protection, upside, flexibility and they can be customized to suit your needs.
Condensed from an Advisory Series Webinar, this presentation explains various types of options and the pros and cons of each. Options contracts function similar to insurance policies. They require an up front premium, offer you a form of protection and you're better off if you don't need to use them. Download Slides »
The strength of the dollar, a favorable interest
rate environment and an abundance of cash on
hand may make this a good time for domestic
companies to invest outside the U.S.
Companies considering a cross-border merger or acquisition should evaluate the currency risk during the due-diligence stage of the deal to ensure that currency rate volatility does not adversely affect the target price.You can perform a “Value at Risk” analysis to quantify the currency risk between now and closing.
Many companies are interested in realizing the potential bottom-line benefits of payables automation but are unsure of how to introduce it. These 10 steps can help.
Among the steps companies can take toward payables automation are reaching out to their bank's treasury management officer, crafting a strategy, obtaining active buy-in from senior management, designating an executive sponsor and forming a payables auotmation project team with representation from various units.
Canada’s Office of the Superintendent of Financial Institutions has granted PNC Bank Canada Branch (“PNC Canada”) a full-service branch license.
Canada is the United States' largest export market and the second largest source of imports after China. Companies doing business in Canada face a number of challenges as they deal with customs documentation and adapt their operations for sales tax accounting, procurement procedures and even packaging and labeling. PNC can help.
In navigating through the sluggish growth environment of recent years, U.S. companies have increasingly focused on improving efficiency throughout their organizations.
Many companies have found significant opportunities for efficiency gains by introducing automation into their accounts payable opertaions. In addition to helping with efficiency, automation can offer a number of other benefits, including reduced costs and greater visibility into their pending financial obligations.
China has experienced strong growth and is now the largest exporter of manufactured goods and the second largest economy in the world.
Transacting in Chinese currency allows importers to realize cost savings and efficiencies, while allowing the invoice payment to be made in the exporters’ native currency, thereby reducing their cost as well.
Foreign currency volatility has reduced earnings from both a transaction and translation perspective. Explore strategies for mitigating the currency impact on earnings and cash flow.
Find out how a strengthening dollar can create a headwind for companies doing business internationally. The recent spike in foreign currency volatility has taken a big bite out of earnings, from both a transaction and a translation perspective. This presentation helps explain these issues.
Exchange rate volatility exists between most currencies. By transacting in the local currency, companies are able to manage exchange rate risk, effectively reducing potential premiums.
Over the past two decades, the U.S. economy has become increasingly linked to global markets, both for sourcing and sales. Historically, U.S. companies tended to prefer to negotiate all international agreements in U.S. dollars. However, they may increasingly placed themselves at a competitive disadvantage by doing so.
As international business grows more important to U.S. companies, it's vital to recognize that import and export activities are heavily regulated by the U.S. Government.
If you are conducting international business, if you are engaging in new types of transactions, if you are doing business with new entities or in new geographic regions, you may receive questions from government entities or your financial institution. Everyone involved is responsible for compliance and could face penalties or fines for noncompliance.
In addition to expanded opportunity, international investing helps reduce portfolio risk through diversification. Allocations to non-U.S. stocks can reduce portfolio volatility.
International equity plays a critical role in a well-balanced portfolio. International stocks are a large and growing share of the global investment universe and offer investors the potential to capitalize on faster long-term growth trends abroad. There are also investment opportunities in industry segments that are dominated by non-U.S. companies.
Currency markets are experiencing a significant amount of volatility. Hedging programs can help companies protect profits and cash flow.
While most companies start with hedging balance sheet exposures as they are more visible, more are now considering hedging forecasted exposures such as sales or expenses. Hedging anticipated cash flows depends on the company’s ability to forecast reasonably accurately, although uncertainties can be managed by hedging a percentage of your anticipated exposure.
Companies of all sizes are increasingly looking for growth beyond borders. In order to succeed in the international marketplace, you need control and flexibility in your cash flow.
Multicurrency accounts, multibank reporting capabilities and multibank transfers should be available through a robust online portal that makes transactions easy, transparent and accurate. Introductions and support with international financial institutions and trading partners are also essential element of a successful international cash flow strategy.
Our close relationship with Canada can make us forget that it offers unique business potential and may have customs, laws, rules and regulations that require attention and insight
Whether you have subsidiaries, operations or sales offices in both Canada and the United States -- or are planning an expansion north of the border -- you will need help from your financial institution in managing payables, receivables and currency issues and arranging credit and treasury management services.
Doing business with Brazil, Russia, India, China and South Africa can be challenging for companies accustomed to the certainties of mainstream currencies.
Although the BRICS proactively promote international business, their governments remain concerned that any sudden inflow or outflow of money could de-stabilize their economies. As a result, they have implemented restrictions on international transactions. Trade and capital payments are regulated and certain hedging practices are prohibited.
Companies are beginning to recognize the importance of having an investment policy that provides clear direction on how investments will be managed and how much risk is acceptable.
A solid investment policy include formalized forecasting and contingency plans to prepare key decision-makers for unexpected events. Contingency plans should include a scenario analysis that details events of varying risk or magnitude and how the company will react. For example — divest, stay the course, or become more conservative.
Canada is a vitally important market for U.S. companies. The United States sells more goods to Canada than to all 27 countries of the European Union combined.
The ease and longevity of our relationship with Canada can make us forget that the enormous territory to the north is not just an extension of the United States. Like any other global market, Canada has its own customs, laws, rules, and regulations that require just as much attention and insight as those of our more distant trading partners.
Does your company have a well-thought-out investment policy? Does your policy have clear, measurable objectives? Has it been written down and shared with the appropriate team?
Putting your investment policy in writing is the foundation of effective investing. Your policy should provide benchmarks to help you evaluate how well it is working and what changes may be needed to make it more effective. While every company is different several elements should be part of every policy.
Webinar covers cash flow as a measure of performance, capital allocation as a determinant of value creation, how key metrics apply to private and public companies and other issues.
Cash flow metrics can help you better understand your own company or a company that you might want to invest in or acquire.Explore the importance of cash flow to a business and how using ROI measures is important to understanding companies.These metrics differ from using earnings for publicly-traded companies and can be used to value investment opportunities.
More and more U.S. companies are engaging with vibrant emerging markets.Smart hedging strategies can help you reduce the risks of doing business there.
Manufacturing capacity, raw materials, labor and even technology make emerging markets attractive destinations for international expansion. At the same time, doing business with countries like Brazil, Russia, India, China and South Africa can be a challenge for companies accustomed to the certainties of mainstream currencies.
Companies need to define a risk management objective. What are you trying to hedge and why? Every company has different metrics that should be incorporated into their hedging decisions.
Companies buying, selling or capitalizing a foreign business often overlook currency risks. including impacts on valuation, financial statements, and capitalization. Get specific, actionable information on currency risk management, including pre-close exposure/hedging, managing the currency impact of capitalization decisions and financial statement impacts.
The wrong strategy, the wrong partner and poor management can knock you off track in China. Learn about challenges in the operating environment.
Often companies initially focus their strategy for China on the basic how to’s: How do I start a company? How do I find an agent? How do I open a bank account? These are important questions. But these are not the issues that can inhibit your success in China.
Initiating or expanding your international business presence is key to growth. The right resources can improve your chances for success while mitigating risk.
The rewards of doing business internationally have never been greater. And it’s never been more important for businesses of all sizes to understand how to take advantage of the opportunities and mitigate the risks presented by global commerce. Here are some winning strategies to help you participate in the growth of international trade.