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International capital structure is just as important as any capital structure that is domestic. They key when creating a strong international capital structure is to obtain access to global markets and raise capital effectively and efficiently. Obtaining the right about of debt through financing and shares is ideal if this is not done appropriately, it could directly affect company sustainability and profitability (DeBenedetti, n.d.). There are risks when working with capital such as cash, credit and inventory management that need to be addressed and reviewed before jumping into a capital structure.

These risks include difficulty with debt financing and selling bonds due to unfavorable rates. If this is the case, it may not be a good option at the time for the company to raise capital in this way. If the company wants to sell stocks and have investors and the risk associated with this includes currency fluctuations between countries as well as offering of a high number of shares and diluting current shareholders. This choice can be costly in the international market but could reap rewards if leverage of the company is already steep (DeBenedetti, n.d.). When working with credit, the company can hold a large accounts aging and waiting on capital to continue operations of companies they are offering financing terms to are not paying timely. When discussing cash, there is a risk of theft & risk of insolvency and using ones own money consistently can cause for cash burns or difficultly paying timely due operational issues. Next, when a company holds a lot of inventory, they cash burn would be high if turnover of the product is not happening. If you have too little inventory there is risk of not having what the consumer wants and them buying it elsewhere. Having a strong inventory control system would assist in reducing theft and if the right amount of inventory is available and can be replenished quickly it can help with overall cash flow when it is bought on an as needed basis with historic sales data providing detail on how many are sold per day or week.