Establishing a strong presence in global trading hubs through efficient corporate structuring is crucial to stay ahead of the competition. Financial hubs help in expanding a business, gain new customers, reduce operational costs, and ultimately, increase revenue since these hubs carry influence beyond their existing regions.
There are a large number of advantages in regions where finance and trading are integrated seamlessly. And businesses will gain highly from being in such hubs that are in close proximity to buyers - they are more likely to grow and expand.
Growth By Expansion
Corporate structures are set up in either regional or global trading hubs such as Dubai, Singapore, Hong-Kong, Switzerland, and Amsterdam, to contribute to a company’s image which then builds confidence to enhance stakeholder relationships, further boost the business volume, and provide opportunities for expansion.
Expanding into international markets would, at times, entail the need for competitive investment financing and facilities for trade finance. In this case, establishing a foreign trading arm coupled with healthy banking relationships and proven track record provides business growth, access to competitive sources for financing, and visibility in the regional/international hub.
A Bankable Corporate Structure
A company having a bankable corporate structure helps in establishing a presence and enhance business visibility that allows for foreign investment. In addition, it helps to establish contact with both regional and international stakeholders. This encourages short-term business growth which will provide access to financing alternatives.
Further, setting up an international structure allows for better control of the business in different territories. Doing this also presents a lean and transparent structure to financiers. To build new markets and gather alternative financing sources, international trading and a banking strategy can be developed. Corporate structures ensure a bankable operation is achieved.
Addressing The Lack Of Efficient Relationships With Stakeholders
When companies are faced with different challenges during the execution of their business activities, it is usually caused by the lack of efficient relationships with existing stakeholders. In these cases, banks have the tendency to decline in handling a transaction.
This can be addressed by filling the communication gap with local bankers all the while allowing the smooth execution of the business flow. An efficient corporate structure can easily enable the negotiation and resolution of any issues among partners caused by a lack of clear communication.
A Holistic Approach To Corporate Structure
It is crucial to understand the existing corporate structure ecosystem of a company before designing, developing and implementing proven solutions. Having an inter-disciplinary and multi-jurisdictional approach to corporate structuring enables the execution of optimal solutions.
A holistic approach will aid in aligning existing business strategies in implementing a corporate structure. The structure then allows for seamless execution of designing and developing relationships from banks, marketing experts, accountants, legal consultants, regulators, logistic providers, and others that contribute to the smooth operation of the business.