Lending to businesses that sell overseas

Description

Abstract: Most domestic companies sell primarily to customers based in the United States. But some generate significant revenue from overseas customers — and every foreign market presents a unique set of risks. This article explains that lenders who receive loan applications from companies with an international customer base will need to evaluate those companies differently than they would if the companies only operate domestically. The article notes that, though there are issues to be resolved, the rewards of lending to companies with a presence abroad may justify the risks. A sidebar offers tips for tapping into local professionals’ knowledge about a potential borrower.