U.S. Firms Urged to Conduct Thorough Due Diligence Before Entering El Salvador Market

Mitigating Risks in International Business Transactions

The U.S. Commercial Section in El Salvador is strongly advising American companies to conduct thorough due diligence on local partners before entering into financial agreements. This recommendation aims to mitigate risks associated with international business transactions and prevent costly mistakes.

Why Due Diligence Matters

A significant portion of foreign operations fail due to inadequate information about potential partners’ creditworthiness, legitimacy, and business practices.
Firms that conduct thorough due diligence can avoid costly mistakes and ensure successful partnerships.

Valuable Resources for U.S. Companies

International Company Profile (ICP) Service

The ICP service provided by the U.S. Commercial Service offers a comprehensive report on a firm’s:

Management structure
Business activities
Product offerings
Financial situation
Creditworthiness
Trading experience

This service is an invaluable resource for U.S. companies looking to navigate the complex Salvadoran market.

Private Sector Credit-Reporting Agencies

Private sector credit-reporting agencies such as Equifax and TransUnion also provide detailed credit reports on Salvadoran firms, enabling U.S. companies to make informed decisions about potential partnerships.

Finding a Trade Specialist Near You

The U.S. Commercial Service, with its extensive network of offices in the United States and abroad, is well-equipped to assist American businesses looking to expand into international markets. To find a trade specialist near you, visit the U.S. Commercial Service website at http://export.gov/usoffices.