Case Study #3: Picking out a Trade Banker
Banking on relationship
Technon International is a Canadian high-technology development company, focused on growing technologies in wireless communications. Technon sources components in China and has overseas programming activities in India covering selected functionality in the new watch PDA with MP3 and cellular functions. Technon has several Canadian and foreign patents to shield its amazing technology, and has developed some strong non-disclosure agreements for use with its numerous suppliers and business associates. A small company proven in Saskatchewan, Canada, Technon had been undertaking most of their commercial financial through a local credit union (small, neighborhood membership-based banks), however , the organization recently received several interesting inquiries regarding exporting their particular latest advancement, and understands they need to build a relationship using a financial services supplier with international banking and export fund expertise. Technon has simplified its options to three likely providers: a Canadian bank with sound credentials in trade finance, a leading UK-based global trade bank, and a mid-tier US local bank which includes expressed affinity for supporting the company's expansion towards the United States. Technon is integrated in Canada, and has quickly achieved gross annual sales in the usa $500, 500 range, with strong margins and conventional growth predictions of about 10% per year. In the event export product sales are factored into the projections, Technon believes that growth rates in the 15-20% selection are possible, depending on the market segments targeted. Asia is especially encouraging, given the amount of investment in wireless technology, and the large rate of adoption of wireless technology among all client segments. The choices
Technon recognizes the need to take their particular banking marriage to a fresh level when it comes to international functions. They remain loyal towards the Credit Union which helped them to develop...