It’s banks turn to think global
Banking services for cross-border trade – including payments and facilities such as letters of credit – are well established. SMEs have access to a wide variety of solutions from international banks. However, when it comes to direct expansion into foreign markets, banks could do more to support SMEs.
Multinational and large local corporates expanding into new markets have traditionally been well supported by wholesale banks which have global account management models and international networks to ensure that clients experience a seamless service, with cost-effective access to working capital based on a global view of their business.
By contrast, when SMEs expand abroad, they are often faced with building new banking relationships from scratch. SMEs may have a credit history in their home market, but their new bankers will effectively assess their business as an independent start-up. As a result, working capital – if available at all – will be more expensive, impeding the SME’s chances of success. This is compounded by the fact
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