For some small and mid-sized companies, the thought of selling their products globally can seem risky, if not downright scary. But it doesn’t have to be. Selling across borders can actually take your business to the next level. According to recent statistics from Euler Hermes, a leading provider of trade-related credit insurance solutions, companies that export grow 37%, and those that don’t decrease 7%.(1)
With 95% of the global population residing outside the U.S. and two-thirds of the world’s purchasing power overseas, businesses must enter new geographies and build international relationships to tap into this potential.(2)
Is risk holding your business back?
Global sales and exports can also carry a larger risk of bad debt. So, when considering international expansion, high-value goods companies need to be buttoned-up and protect themselves from the risk of customer non-payment.
Non-payment is a big concern for small and mid-sized businesses. A recent study by Payoneer®, a leading cross-border payments company, found that 75% of respondents declined international business opportunities due to risk of non-payment, and 57% of sellers said their current approach to ensuring payment limits their growth.(2)
Reduce risks – reap the rewards
Small and mid-sized companies often lack the appropriate infrastructure to properly vet new customers, manage multiple banking relationships or collect delinquent invoices. But today, there are a number of new financial technology and payments solutions that can help those companies reduce the risk of bad debt.
Recently, UPS Capital® launched a secure online platform that handles B2B transactions, protected by licensed escrow. This service gives suppliers peace of mind that they can deliver their goods with the certainty that they will be paid. Buyers are protected because they can be confident they’re doing business with a legitimate company and will receive what they paid for. It’s a win-win for both buyer and seller.
It’s perfectly normal to feel a little anxious about expanding to new countries. But there are good support solutions available to help set your mind at ease. So you can focus your attention on all that new business opportunity out there.
Dave Zamsky is the Vice President, Marketing, UPS Capital/Parcel Pro. Dave has been with UPS for more than three decades, building products and services to meet customers’ supply chain needs and helping to drive profitable growth for the organization.