Setting up a local business

We can advise you on setting up a local business

You have decided to venture into a new international market. Perhaps you will do business in Germany, or even outside Europe. The question is: are you just going to sell your products or services there, or are there benefits for you in producing abroad as well? Your account manager can advise you.

Choosing the company type

Setting up a business abroad means you will be closer to your sales market. This will enable you to adapt quickly to local needs. You should consider a number of points when deciding which type of company is best for you.

Open a local office with local sales force

  • specific local knowledge
  • local network
  • flexibility as regards costs
  • limited control of the sales market

Open a local office with Dutch sales force

  • knowledge of the company
  • more control of the sales market
  • local knowledge limited

Setting up a local production facility

  • lower production costs
  • raw and other materials available locally
  • logistic benefits if production takes place close to sales market
  • specific local knowledge
  • often a considerably larger investment than setting up a local office
  • not beneficial logistically if this means a greater distance between the sales market and the production facility

Cooperate with existing local party (joint venture)

  • knowledge of the local market and customs
  • local network
  • relatively cheap form of setting up a local business
  • shared control, not completely independent

An important aspect when setting up a local business is to determine how your business will be positioned in the local market. How will you be positioned in relation to the competition? Thoroughly analyse the market you are going to operate in and then assess which steps you want to take.

Risk management

There are risks involved in setting up a business locally. Together with your account manager you can decide how you can cover your business risks abroad.

Political risk

You may have to deal with an event abroad that constitutes force majeure, such as war, a trade boycott or government measures.

Transfer risk

Your company may lose income because currencies cannot be exchanged as a consequence of political events or circumstances.

Economic risk

Your competitive position could be negatively affected or your future cash flows could change as a consequence of changes in prices and/or exchange rates. If you generate your revenue in a country with a currency which weakens and your costs are made in a country with a strong currency, an ever-increasing mismatch can occur between your income and your expenses.

Interest-rate risk

Movements in interest rates can have a negative effect on your operating result.

Currency risk

Currency rates are always changing. Your business is dependent on these movements, which can have both positive and negative effects.


You may require finance to set up your local business. We have various financing options, including in countries that are less obvious choices.

Your account manager and an International Finance Manager will jointly assess which financing mix best suits your company's situation.

Read more about finance

Bank finance

You can apply for bank finance in the form of a loan or working capital. Differences in legislation and regulations may mean that foreign banks do not offer the same security in all countries as regards real estate, receivables, plant and equipment, and stock. This affects the extent to which your international business can be financed. Discuss the available options with your account manager.

Finance from the Netherlands

You can finance your foreign subsidiary directly from your local Rabobank in the Netherlands. If necessary, we can arrange  forms of security locally in a number of countries, for example on your business premises.

Finance from abroad

We will be pleased to help you arrange finance from abroad, using our international network of offices. This finance will be in line with local practices and customs that apply where you wish to set up your business. In countries which do not have a Rabo International Desk, we collaborate with our partner banks. The services they provide link up seamlessly with your needs as a Dutch internationally operating corporate customer.


Lease makes it easy to finance movable property such as production equipment, transport and ICT, with the object in question as collateral. The point of departure is 100% financing of the purchase so that this does not affect your working capital.

We arrange leases in collaboration with our subsidiary DLL.

Read more about international lease (in Dutch)


Factoring means that the outstanding receivable amount is pre-financed. Pre-financing on the basis of your stock is also an option in this context. Factoring can vary from issuing working capital to administering and collecting from your customers.

We often provides pre-financing on 50% of the stock located in the Netherlands. Customers can be located across the globe. If you invoice from a subsidiary located in the United Kingdom, Germany or Belgium, we can can also include this in the factoring solution.

Read more about factoring (in Dutch)

Rabo Corporate Connect

Rabo Corporate Connect is the large corporates transaction portal for your international money flows. It enables you to arrange and review all your payments, currency purchases and currency sales directly online.