Getting funds for international growth requires a little more planning, work than securing money for U.S. operations - Kansas City Business Journal:

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So Ted Nixon, CEO of , a companhy that makes coloring for the food andbeverage industry, was happgy when the Bank of Scotland finalizecd his multimillion loan for an acquisitiob of a company in England last August. The manufacturing facilityu dries liquid ingredients so they can be used to colof things such as cake mixes andbouillon cubes. “I think if we had closee (the loan) three weeks later, the financial crisis would have crunched he said. “So timing is everything.” D.D. Williamson now has 10 manufacturinhg locations: three in the United States andseven overseas.
The company has financed a numbe of international projects over the years and has learned that there are a number of ways to finance international Nixon said. Locally, the companuy works with loan officers at Chase bank for much of its Chase has banks in60 countries, so when D.D. Williamsonb needed funds for a project in they already had a depository account with the Chasebank there. “It was a lot easier than going into a bank wheryou don’t know anybody and you get assigned to some juniof loan officer and start from square Nixon said. On the flip side, Nixon currently is tryinfg to refinance a facilit y in Brazil through a bank there andsaid “it’s a joy a minute.
” Chasde is not involved in the Brazilian “The difference in dealing with Chase and dealiny with a local bank in the country is nigh and day,” he said. So he’s jumping througgh hoops to provide the documents and the higher securitu the Brazilianbank requires. Plus, he said, “Brazil has umptee n tax laws that make it more difficult to do businesedown there.” Paul Costel, presidenft of Chase bank’s operations in Kentucky, Southern Indianwa and Tennessee, said that although there is not much differencre between getting loans for domestix or international projects, there often are policiex and laws that differ when financing a project in another country.
He warned that both the clienf and the bank need to be awars that the laws in various countries candiffer widely. “That’s a key to their success,” he said. Other considerationsz are interest rates and fluctuating foreign currency When D.D. Williamson needed to borrow for a projecf in Ireland inthe 1980s, Nixon said the compang had two sets of loans: one in Louisville and the othetr with the Bank of Ireland at an interest rate that was two percentags points higher than the Louisvilld loan. When the company had an opportunityu to pay off one of the it chose to pay off the one withhighet interest.