Selecting Trade Banker
Case Study #3: Selecting a Trade Banker
Banking on relationship
Technon International is a Canadian high-technology development firm, focused on emerging technologies in wireless communications. Technon sources components in China and has offshore programming activities in India covering certain functionality in its new wristwatch PDA with MP3 and cellular capabilities.
Technon has several Canadian and international patents to protect its proprietary technology, and has developed some strong non-disclosure agreements for use with its various suppliers and business partners.
A small company established in Saskatchewan, Canada, Technon had been doing most of its commercial banking through a local credit union (small, local membership-based banks), however, the company recently received several interesting inquiries about exporting their latest innovation, and realizes they need to develop a relationship with a financial services provider with international banking and export finance expertise. Technon has narrowed its options to three possible providers: a Canadian bank with solid credentials in trade finance, a leading UK-based global trade bank, and a mid-tier US regional bank that has expressed interest in supporting the company’s expansion to the United States.
Technon is incorporated in Canada, and has quickly achieved annual sales in the US $500,000 range, with strong margins and conservative growth projections of about 10% per year. If export sales are factored into the projections, Technon believes that growth rates in the 15-20% range are achievable, depending on the markets targeted. Asia is especially promising, given the level of investment in wireless technology, and the high rate of adoption of wireless technology among all consumer segments.
The options
Technon recognizes the need to take their banking relationship to a new level in terms of international capabilities. They continue to be loyal to the Credit Union which helped them to grow
Banking on relationship
Technon International is a Canadian high-technology development firm, focused on emerging technologies in wireless communications. Technon sources components in China and has offshore programming activities in India covering certain functionality in its new wristwatch PDA with MP3 and cellular capabilities.
Technon has several Canadian and international patents to protect its proprietary technology, and has developed some strong non-disclosure agreements for use with its various suppliers and business partners.
A small company established in Saskatchewan, Canada, Technon had been doing most of its commercial banking through a local credit union (small, local membership-based banks), however, the company recently received several interesting inquiries about exporting their latest innovation, and realizes they need to develop a relationship with a financial services provider with international banking and export finance expertise. Technon has narrowed its options to three possible providers: a Canadian bank with solid credentials in trade finance, a leading UK-based global trade bank, and a mid-tier US regional bank that has expressed interest in supporting the company’s expansion to the United States.
Technon is incorporated in Canada, and has quickly achieved annual sales in the US $500,000 range, with strong margins and conservative growth projections of about 10% per year. If export sales are factored into the projections, Technon believes that growth rates in the 15-20% range are achievable, depending on the markets targeted. Asia is especially promising, given the level of investment in wireless technology, and the high rate of adoption of wireless technology among all consumer segments.
The options
Technon recognizes the need to take their banking relationship to a new level in terms of international capabilities. They continue to be loyal to the Credit Union which helped them to grow