Discover Efficiencies with Expansion into Canada
We’ve worked with many U.S. businesses that have expanded into Canada, so we’ve seen firsthand the difficulties that crop up when it comes to managing payments. These issues typically boil down to matters of structure, resources and partners. But these challenges also present treasurers with the opportunity to innovate, potentially bringing benefits to operations on both sides of the border.
Structure
Rather than repeat what they’d been doing in the U.S., one company we worked with used its Canadian subsidiary to experiment with new functions designed to improve efficiency, effectively using its Canadian treasury department as a pilot program for possible use in the U.S.
It’s about creating a mindset for innovation. But you need the right resources and partners to help you pull this off.
Resources & Partners
Diminishing resources is the top complaint we hear from CFOs. Finance and treasury leaders are being required to operate with a leaner staff, but the silver lining is technology is advancing at a rapid pace and can provide efficiencies you have yet to tap into. That’s where an effective financial partner comes in.
Your partner should be able to provide access to the modern platforms you need to run your treasury functions efficiently in both the U.S. and Canada. That includes helping you navigate a rapidly modernizing payments environment. Canada’s payments modernization effort, for example, will provide real-time payment rails in Canada. Working with a bank that offers real-time rails on the U.S. side of the border can make it easier to transact cross-border transfers:
- Companies can be confident that customers will receive same-day payment, which can also be a competitive advantage.
- Ideally, your financial partner’s payment rail should use the standard rails in the destination country to enable the quickest payment.
- Real-time payment rails should also reduce the fees associated with international wires while providing more payment transparency.
Points to Consider
If you’re expanding to Canada, it’s important to look at your five-year plan and determine how to align the structure, resources and partners around your finance function accordingly. This includes asking:
- Will the structure you’re considering create inefficiencies in Canada? How should you address them?
- Should you replace or upgrade your ERP system?
- Should you talk to a payments expert regarding ISO 20022?
- Are your financial partners able to provide an efficient cross-border treasury platform where you can (consider: seamlessly do transactions on either side of the border and any other country) view your accounts in both countries in one place?
- How can eliminating inefficiencies help your customers?
Answering these questions can mean the difference between an expansion that improves your treasury function and one that gets bogged down with inefficiencies.
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Oscar Johnson
U.S. Head of Commercial Sales for Treasury and Payment Solutions
Oscar is the U.S. Head of Commercial Sales for Treasury and Payment Solutions for BMO Commercial Bank. His group is responsible for providing cash management, …(..)
View Full Profile >We’ve worked with many U.S. businesses that have expanded into Canada, so we’ve seen firsthand the difficulties that crop up when it comes to managing payments. These issues typically boil down to matters of structure, resources and partners. But these challenges also present treasurers with the opportunity to innovate, potentially bringing benefits to operations on both sides of the border.
Structure
Rather than repeat what they’d been doing in the U.S., one company we worked with used its Canadian subsidiary to experiment with new functions designed to improve efficiency, effectively using its Canadian treasury department as a pilot program for possible use in the U.S.
It’s about creating a mindset for innovation. But you need the right resources and partners to help you pull this off.
Resources & Partners
Diminishing resources is the top complaint we hear from CFOs. Finance and treasury leaders are being required to operate with a leaner staff, but the silver lining is technology is advancing at a rapid pace and can provide efficiencies you have yet to tap into. That’s where an effective financial partner comes in.
Your partner should be able to provide access to the modern platforms you need to run your treasury functions efficiently in both the U.S. and Canada. That includes helping you navigate a rapidly modernizing payments environment. Canada’s payments modernization effort, for example, will provide real-time payment rails in Canada. Working with a bank that offers real-time rails on the U.S. side of the border can make it easier to transact cross-border transfers:
- Companies can be confident that customers will receive same-day payment, which can also be a competitive advantage.
- Ideally, your financial partner’s payment rail should use the standard rails in the destination country to enable the quickest payment.
- Real-time payment rails should also reduce the fees associated with international wires while providing more payment transparency.
Points to Consider
If you’re expanding to Canada, it’s important to look at your five-year plan and determine how to align the structure, resources and partners around your finance function accordingly. This includes asking:
- Will the structure you’re considering create inefficiencies in Canada? How should you address them?
- Should you replace or upgrade your ERP system?
- Should you talk to a payments expert regarding ISO 20022?
- Are your financial partners able to provide an efficient cross-border treasury platform where you can (consider: seamlessly do transactions on either side of the border and any other country) view your accounts in both countries in one place?
- How can eliminating inefficiencies help your customers?
Answering these questions can mean the difference between an expansion that improves your treasury function and one that gets bogged down with inefficiencies.
This is part 2
of a
5-part series on
Expanding into Canada typically exposes issues in three key areas.
PART 1
Special Report: The Importance of Canadian Trade
Michael Gregory, CFA | September 29, 2019 Doing Business In Canada
America is running a record $900 billion deficit in goods trade. China accounts for the largest share of the shortfall at 44.6%, followed by Mexico&r…
PART 3
With or Without USMCA, Canada Can Open Doors for US Companies
David Jacobson | November 13, 2019 Doing Business In Canada
There is great debate in Washington about whether Congress will ratify the United States-Mexico-Canada Agreement (USMCA) before year’s end. I h…
PART 4
Making It in Canada: Opportunities and Risks for Manufacturers
Ray Whitacre | November 19, 2019 Doing Business In Canada, Manufacturing
For U.S.-based manufacturing companies looking to expand into international markets, Canada represents a logical entry point. From the nature of its …
PART 5
Looking to Expand into Canada? Tips from our Cross Border Experts
November 04, 2019 Doing Business In Canada
Our cross border campaign, Expertise in Action, offers tips and insights for U.S.-based companies that are looking to expand their businesses no…
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