Have a product that’s selling so well in the states that you’re considering expanding into the global marketplace? That’s great news! Before you jump in, the experts at Total Export want to share a few key financial considerations with you to help you make the most of your investment overseas.
Are you ready to manage overseas relationships?
If you think vetting potential and current customers is tough in the United States, get ready for an even more complex process for international customers. Before venturing into the global market, it’s absolutely necessary to do your due diligence in vetting the companies that will purchase from you. We recommend checking their credit histories on a regular basis. Don’t forget to vet the individual directors of potential customers, too.
How about the complicated process of invoicing and payment collection?
In a recent survey of 500 companies who export products, respondents indicated that the volatility of currency exchange rates is their top concern in international invoicing and payment collection. But limited payment visibility, complicated and varied bank fees, and inefficient invoicing and payment collection processes are also special challenges in the global market.
Before making the leap into the international market, take the time to understand how different invoicing requirements, taxes, tariffs, and even time zones and languages will affect your invoicing and payment processes. Also take into account the limited legal recourse you’ll have holding companies accountable across national borders.
Do you have a US-based resource for exporting your goods?
Once you have a plan for managing overseas relationships and a process to invoice and collect payment from international customers, it’s time to consider the logistics involved in shipping and selling products overseas. Every country has its own tariffs, taxes, documentation rules, and labeling requirements. If you don’t comply with these regulations, you’ll waste time and money on delayed shipments.
To ensure your products arrive at their destinations on time and undamaged, you need to partner with an export company that understands the complex export process and can create a custom packaging and containerization solution for your product. Total Export has decades of experience developing custom solutions for products of all sizes. We have the resources and staff to help make the export process seamless for you. For help exporting your popular product, call Total Export at 612-788-9777 today.