A single tweet. That’s all it takes to send international markets reeling. So what can small and medium-sized multinationals (SMMs) actually do to maintain some semblance of continuity?
SMMs must urgently adapt to the new reality of global trade disruption. Rather than being reactive and waiting for markets to stabilise, they need to be proactive and focus on achievable growth amidst this volatile landscape — all while protecting their margins. How? Through supply chain resilience, market diversification and a solid financial risk management strategy.
Read on to delve deeper into these key tactical changes and discover everything you need to ride this wave of uncertainty.
What are SMMs?
First things first, what do we mean by SMMs?
We all know SMBs. Agile by nature, these businesses play a pivotal role in powering our economies and account for more than 50% of employment worldwide. But this umbrella term refers to a huge number of organisations — approximately 90% of businesses — all with different operational and administrative setups and unique challenges. Some remain very local to their communities, while others offer their products and services nationally. And then there are those bold small and medium-sized businesses that dare to cross borders. They’re multinational, multi-cultural, multi-office, multi-currency, and multi-faceted...You get the idea.
Small and medium-sized multinationals aren’t afraid of challenges. They’ve already turned internationalisation into a competitive advantage. But they’re often one of the hardest hit groups when markets take a turn for the worse. And with markets particularly unpredictable right now, it’s proving to be a challenging time for SMMs, to say the least. So what can you do about it?
Turn volatility into a competitive advantage
Put simply, you need to convert this FX volatility from an operational concern into a strategic advantage. Knowing whether or not to enter a new market or strengthen an existing market presence should be driven by your readiness, not a president’s Twitter feed. So what can you do to make the most of today’s volatility?
Bolster your supply chain
There are businesses thriving in this volatile environment. And you may be thinking: “Surely that’s because they have deeper pockets, right?” Not necessarily — they're the ones who planned ahead and built and maintained efficient supply chains.
While many SMMs might not see the true value of good supply chain management, smart businesses have figured out it's actually their best shot at staying ahead. Those businesses that check up on their suppliers' finances, keep their contracts flexible, and build in some breathing room with their stock levels? They're not just surviving the chaos — they're stealing customers from competitors who are scrambling to keep the lights on.
Reviewing your supply chain and implementing the right changes today can allow you to pivot when a supplier faces shipping challenges or if a partner's financial situation deteriorates. The smartest SMMs have realised this already.
And building a resilient supply chain isn't just about avoiding disasters — it's about being ready to pounce when an opportunity rears its head. So what are some of the opportunities you should be considering right now?
USA operations: Avoiding tariff turmoil
For some, the USA may be something of a no-go zone due to the recent wave of tariffs and a decline in American purchasing power. But what if you’re already present in the US market and are majorly affected by the tariffs being imposed?
If you deal in tangible products, consider transferring the final assembly stage of your operations to the United States. This offers a strategic solution to circumvent the tariffs as a product is generally considered imported when assembled in another country, regardless of the origin of its parts. By assembling domestically, your product would qualify as "Made in the USA" and benefit from more favourable tariff rates, perhaps even exemptions, depending on your circumstances.
Maximise your growth potential in Europe
Sometimes, staying closer to home can be a smart option. In 2023, the eurozone posted 0.4% growth, with a modest uptick to 0.8% expected in 2024 and 1.3% projected for 2025. Focusing efforts within the European Union is a strong alternative to global markets, given the political turmoil in the US and thanks to the EU’s fiscal and regulatory stability.
And if you do decide to leverage EU stability, there are a number of support networks you can access. Start by looking at the Enterprise Europe Network (EEN) — an initiative led by the European Commission that connects companies with commercial, tech and institutional partners across Europe. Then there are local chambers of commerce and national export and investment agencies like Business France, Germany Trade & Invest, or ICE in Italy, each providing essential support for expanding your business in their respective markets.
Adopt the right tools for the job
SMMs have uniquely complex banking, administrative and financial challenges. Because of their size, unique business models and international exposure, basic tools simply aren’t enough. At the same time, solutions designed for large multinational corporations are often more complex than SMMs require.
So, when thinking about cross-border payment providers, here are the standout features you should be looking for:
- A modern platform that works seamlessly with your existing business tools
- Multi-currency accounts that grow as you do without costing the world
- Competitive exchange rates and transparent pricing, so you know exactly what you’re getting
- Advanced payment tracking that shows you where your money is throughout its journey
- A range of tools to strategically manage currency risk
- Support teams that actually understand cross-border payments and your business
iBanFirst: Why it stands out as an international payment provider
At iBanFirst, we understand the challenges that SMMs face when it comes to international payments. Navigating through a maze of red tape, prohibitive fees, slow processes, and unpredictable currency exchange rates can be overwhelming.
When you open your iBanFirst account, you get access to everything you need to manage cross-border payments more efficiently and hassle-free.
Multi-currency accounts to hold, send and receive cross-border payments
With iBanFirst, you can open multi-currency accounts digitally — no opening fees or monthly subscription costs. Customers can then pay you in their local currency and you can pay suppliers or transfer funds between subsidiaries at your chosen speed and in whichever currencies suit best.
Leveraging our extensive network of local and global financial partners, we ensure every payment takes the fastest, most cost-effective route.
The ability to track your payments across borders
You can access detailed payment tracking thanks to the iBanFirst Payment Tracker. You'll get timestamped updates that cover the entire payment journey — including which intermediary banks are involved along the way.
The Payment Tracker also lets you share tracking links with your partners and suppliers so they can see the same timestamped updates as you. This means fewer anxious back-and-forth emails about the payment status and better business relationships built on transparency.
Tools to manage currency risk the smart way
If you're moving significant volumes across borders, we can help you minimise the impact of fluctuating exchange rates on your margins. With our range of deliverable forward payment contracts, you can lock in exchange rates over a set period of time.
Unsure which to choose? Our skilled FX specialists can help you design and implement the right FX risk management strategy for your business goals and needs. Yes, real humans who actually understand international payments and FX risk management — and who know your business inside out.
But wait...That’s not all
Keen to know more? Our must-have survival kit addresses the opportunities and challenges facing SMMs as they try to navigate the volatile global trading landscape following the wave of US tariffs and broader geopolitical uncertainty. Think of it as your practical, six-point survival guide specifically designed for the unique position SMMs like yours find themselves in. Check it out today.
