News & Resources

Exporting – Are you missing an opportunity?

Despite growing pains and occasional challenges like the one we are currently facing at the Port of Portland, Oregon has developed into one of the strongest per capita export states in the nation. This is due in part to the influence of a growing tech sector, our historically strong agricultural base and a vibrant manufacturing community spread across a number of industry clusters.

In spite of this, many firms in Oregon and SW Washington have only begun to explore export opportunities. Many have become accidental exporters as their product is first discovered by an international distributor and then sold into a foreign market or two. While there are an estimated 6,000 Oregon companies that are exporting at some level, the majority of these firms are limited to just one foreign market. This leaves many firms that are not fully pursuing global opportunities in addition to thousands of potential local exporters who just don’t know where to start.

Fortunately, there is a wealth of resources in both the public and private sector that are readily available to help emerging or established exporters grow their business. These services include comprehensive training to evaluate and provide for export readiness as well as access to market research and export-related grants. There are also multiple resources available to help companies navigate the nuances of the various trade finance and risk management tools.

In a March presentation to the Oregon Banker’s Association the U.S. Commercial Service predicted that there will be a billion new middle-class consumers outside the U.S. in the next 15 years. When you consider that 95% of the world’s consumers live outside the U.S. it’s clear to see why companies are looking to foreign markets for expansion. The rewards of this large market opportunity are not without its risks and there is no easy approach that works for each firm or across multiple markets. Business owners need to be committed to understanding the cultural, business and legal nuances of each market. This is in addition to the same factors every business domestically considers such as key competitors, barriers of entry and market saturation to name just a few.

On the finance and risk management side, credit insurance provides a powerful tool enabling banks to lend against foreign receivables while allowing firms increased ability to market their products and provide payment terms to grow export sales. Government guaranteed trade finance tools available through the EXIM bank or through SBA export programs can provide a significant working capital boost to help firms fulfill export sales. Traditional payment tools such as letters of credits or documentary collections remain appropriate in certain situations.

As a community-minded bank, The Commerce Bank of Oregon’s approach is to provide a highly engaged banking relationship to small and medium sized businesses that value a local and personal banking relationship. Through our ownership affiliation with Zions Bancorporation, we are pleased to offer international resources to our business clients while maintaining the customization and flexibility of a community bank.

The information herein is presented for general informational purposes only and is not intended as Legal, Business or Tax advice. Consult a professional for advice particular to your circumstances.

About The Commerce Bank of Oregon

Since 2005, The Commerce Bank of Oregon has served small and medium-size businesses by providing clients with innovative and informed financial recommendations that are made by local bankers who are familiar with each client’s unique personal and business goals. The Commerce Bank of Oregon focuses on key Oregon industries, such as manufacturing, wholesale, distribution, food production, retail, and the professional service sector. Learn more at www.tcboregon.com.