Douglas Bubna on Jovem Pan: what to calculate before expanding to the U.S.

Douglas Bubna, founder and CEO of Head Oversea, spoke to Brazilian outlet Jovem Pan about a question many business owners are asking: with Brazil's Selic at 13.75% and the U.S. prime rate at 7%, is it time to take the company to the United States?

Head Oversea's answer is that the gap between the two rates is only a starting point. The real cost of an expansion depends on exchange rates, collateral, loan terms, local credit history, and the currency in which the company earns its cash.

Key points from the interview

• A lower benchmark rate does not mean cheap credit: the final cost varies with the product, term, and borrower risk.
• Companies arriving without a U.S. track record may struggle to access credit.
• Dollar debt suits companies with predictable dollar revenue; borrowing in reais to invest in dollars adds currency exposure.
• Waiting for the exchange rate to "improve" is not a strategy: entering in phases and testing scenarios is safer.
• Execution — hiring, local rules, consistent service — is often harder than opening the first location.

The full report, by journalist Luciene de Oliveira, is available on Jovem Pan's website via the link below (in Portuguese).