Why the right banking relationship matters for U.S. expansion

A local banking relationship can give an international company access to capital and treasury management solutions while also providing local market insight and industry expertise to support growth its U.S. operations.

Key takeaways:

• International companies expanding into the U.S. must navigate a complex landscape of tax and labor laws, cultural differences and financing requirements.
• Building strong relationships with experienced local advisors, including a bank that understands the local market, the company’s industry and the broader international group’s objectives can help support a successful U.S. expansion.

It may be a volatile moment for United States trade policy, but this is not necessarily a deterrent to international companies looking to invest in the United States.

In fact, foreign direct investments are on the rise, with foreign businesses increasingly looking to expand or establish operations in the U.S. According to the U.S. Bureau of Economic Analysis, expenditures by foreign direct investors across a wide range of industries totaled $232.2 billion in 2025, up 49.5 percent from 2024 levels.

“When a foreign company is looking at expanding into the U.S., it is making a long-term strategic commitment, not a short-term decision,” said Laerte Barros, head of the International Subsidiaries Banking Group at Regions Bank, which specializes in supporting the U.S. banking needs of subsidiaries of global corporations. “These companies look beyond the tall trees. While administrations and trade policies may change over time, these organizations’ focus remains on the broader landscape: the size and resilience of the U.S. economy, the depth of its markets, and the long-term opportunities for growth. They are investing not for the next quarter, but for the next decade.”

The appetite and opportunity are evident. But according to Barros, companies looking to establish operations in the United States need to keep several important factors top of mind.

Four considerations for international companies expanding into the United States

1. Understand U.S. tax, labor and market differences

“The country you are going to is different than the country you are coming from. This sounds very simplistic, but it’s fundamental to understand if you’re going to achieve success,” said Barros. “The tax system, regulatory requirements and labor laws are different. Business practices differ, and strategies that work in a company’s home market may not translate directly to the U.S. Success often requires adapting to local market conditions and customer expectations.”

2. Navigate cultural differences with local expertise

Cultural fit is another important aspect, and having a local advocate in the U.S. with a deep knowledge of the country of origin can make a big difference. “You need to be able to turn to advisors that understand not just your business, but also your culture,” said Barros.

“This is one reason why we have dedicated bankers in our Regions International Subsidiaries Banking Group who have personal connections to and backgrounds in the countries of origin for many companies that are looking to expand into the U.S. It’s important to be able to rely on someone who understands and can help navigate the cultural nuances.”

3. Build a team of trusted U.S. advisors

“It’s important to surround yourself with experienced bankers, accountants, and attorneys who can help you navigate the complexities of the legal, regulatory, financial, and tax environment. Companies that are not vigilant about working with strong advisors and try to cut corners may face costly challenges along the way.”

4. Establish a strong local banking relationship

To grow in the U.S., establishing a local banking relationship is key. “While international companies often rely on funding from their parent company or home-country banks initially, growth typically creates a need for local financing and more complex treasury management solutions,” Barros noted. “Selecting a bank with the capabilities and commitment to support the company over the long term can help ensure its U.S. operations have the resources needed to grow and succeed.”

Why a local banking relationship matters for U.S. expansion

According to Barros, the ideal banking relationship combines local market insight with international expertise. “There are plenty of banks in the U.S., but not all have the capabilities and knowledge needed to understand and support international businesses,” said Barros. “Companies often require more advanced cash management, foreign exchange, trade finance, derivatives and financing solutions as they grow.”

Barros noted that some large international banks offer global capabilities but lack local market insight, while smaller local banks may understand the local market yet lack the products, industry expertise or lending capacity needed to support expansion. Further, the most effective banks understand both the U.S. subsidiary and the broader international organization.

Working with a bank that can provide the combination of access to capital, strong local presence and deep industry knowledge can provide a competitive advantage for international companies expanding in the U.S.

Ready to help

The Regions Bank International Subsidiaries Banking Group leverages experience in international finance to support the banking needs of U.S.-based subsidiaries of global corporations. From access to capital to treasury management solutions, Regions can help international companies establish and grow their U.S. operations. Contact us today.