Entering a new market can be a vital part of your business growth strategy. Working with new customers in a different economy can provide valuable insights for innovation or service development which could be brought back to the home market. With a foothold in several territories, the business will have a more diversified portfolio across markets which may be at different stages of the economic cycle in your sector.
Such opportunities also carry unavoidable risks that must be assessed and mitigated wherever possible. Business practice, legal frameworks and local culture hold many variations so that it is dangerous to assume your experience in your home market will apply elsewhere. The time spent researching and rewarding will be well rewarded.
For example, in Latin America you may face demands for fianza. In Eastern Europe, an abstract demand guarantee may be required and in parts of Africa, a cautionnement under French law. These terms may be unfamiliar but all relate to an important principle: the requirement in those markets for protection in bidding and tendering process, and during the course of the contracted work.
As your business reach extends, make sure you have access to the support and services you need for each market, contract type and employer (government contracts may be different from contracts for private companies).
With experienced resources of over 200 countries, we can help you plan your work with employers across the world, in any sector. Our knowledge of local conditions is unrivalled, and it’s backed by the financial strength and technical expertise of a global insurer. From the first steps through to the completed contract, we can work with you to grow with confidence.
Research and planning to enter new markets may reveal risks that you have not encountered before in your domestic business or when exporting. Many countries have their own unique types of guarantees or agreements that are commonly used in that country but nowhere else. You can benefit from our expertise as a global trade specialist when you set terms of payment for international trade. When you become a customer by using one of our risk management solutions, such as bonds or guarantees, you will have access to online systems that are powerful tools for monitoring of risks. The experts in our network of more than 200 offices can advise on the steps you need to take for success with new clients that are employers outside your existing markets.