Identifies common practices to be aware of when selling in this market, e.g., whether all sales material need to be in the local language.
Success in the Hungarian market is difficult without an in-country representative, agent, or distributor. While marketing tools serve to introduce a product or service, personal visits carry much more weight in Hungary. English, German, and French are often spoken by younger business managers and are more prevalent in larger firms. U.S. companies in Hungary are still advised to have their brochures and information professionally translated and to have a translator on the spot during business meetings if needed.
Hungarian companies can access corporate loans at favorable rates and conditions to boost their sales or expand their manufacturing operations and business activities.
These two factors usually benefit foreign firms. However, the Hungarian National Bank’s Funding for Growth Scheme (NHP) with an interest rate capped at a maximum 2.5% has benefited several local firms, despite the fact that some of the lending was initially put into bank deposits or was used to purchase government bonds, taking advantage of the arbitrage opportunity.
U.S. companies can mitigate financing risks and better compete with EU firms by directing their Hungarian customers to services like those of the U.S. Export-Import Bank.
Because business in Hungary is often based upon personal relationships and trust, U.S. exporters are encouraged to visit potential Hungarian customers when presenting a proposal and discuss all conditions of future dealings. Face-to-face meetings are essential to successful long-term business cooperation i Hungary. The U.S. Commercial Service Budapest, through its various services, can help U.S. companies determine the export market potential in Hungary.