How to Grow a Subsidiary Business in the US

 How to Grow a Subsidiary Business in the US

The last few years have been a bit tumultuous for countries around the world. In the US for instance, We’ve experienced trade tensions and tariffs, tax reform as well as a global pandemic – which, of course, brought on a new set of challenges. Still, as multinationals look for new growth opportunities, establishing a presence in the US continues to make good business sense. That’s because the US remains the world’s largest economy with consistently strong consumer spending. A well-educated workforce and democratic government are combined with ready access to capital, creating a favorable environment for business success.

Yet, running a global business and expanding into new markets can be challenging – even in the friendliest of environments. Setting up accounts can be complicated and confusing, and working with individual, local banks often means different platforms and processes, which can make it difficult to manage working capital and liquidity efficiently across markets.

The best way to overcome these challenges is through working with an international bank like HSBC, which has a significant global network in local markets. HSBC takes this one step further with our International Subsidiary Banking (ISB) team, which sets up global and local teams to streamline communications, consolidate accounts, improve efficiency and simplify business processes. Here’s what you can expect when you work with HSBC ISB in the US to set up your subsidiary here.

A Dedicated Team of HSBC Relationship Managers

It starts with a dedicated, multilingual team of people who work together to deliver consistent service and solutions from market to market. This includes a Global Relationship Manager who works with your parent company, an ISB Regional Relationship Manager who liaises with your Regional Treasury Center, and, finally, a locally-based ISB Relationship Manager who works directly with your US subsidiary. That means we see your company as a global business and not as a collection of smaller, disparate entities – allowing us to take a more holistic approach to creating solutions designed to help you streamline costs, make better use of working capital and reduce risk.

Global Banking Connectivity

Aside from having a team of people working toward a common goal, HSBC also gives you access to a technology platform for all your banking needs, HSBCnet. This online tool enables you to automate and standardize processes from the parent to the subsidiary level. Financial data integrates easily into your existing systems – giving you the invaluable real-time visibility into global financial positions you need to transact and to make well-informed business decisions.

Better Access to Financing

Working with HSBC’s ISB division in the US also gives you better access to flexible, competitive financing solutions locally and organization-wide. That's because they assess your global credit position compared to a US-based bank that might look primarily at your local performance. This helps you manage and finance your business to achieve your global growth strategy – from new acquisitions to R&D.

Why HSBC International Subsidiary Banking?

In addition to building a team that mirrors your own, HSBC ISB US has a dedicated team Relationship Managers in key markets across the US supporting subsidiaries of international businesses located throughout the world. Your ISB Relationship Manager is further supported by HSBC product specialists in our Global Liquidity and Cash Management business – which was named #1 Regional Cash Manager for Corporates in North America in the 2020 Euromoney Cash Management Survey. And because we operate across more than 50 markets, you have access to a truly global network for making meaningful connections to take advantage of growth opportunities around the world.