Variety of Potential Financing Options
One distinct concern that North American investors have when it comes to securing financing in Latin America is that they won’t be able to find the right type of loan. Thankfully, that could not be further from the truth.
The reality is that offshore and Latin American loans are available for real estate, commercial investment and secure credit lines. Whatever need exists, the right Latin American loan is available.
Another great reason to consider finance options from Latin America has to do with the banking stability found in many countries in the region. While many investors have serious concerns about the rating of America’s banking system and debt reliability, other countries in Latin America are ranked as some of the most stable financial systems in the world, granting borrowers peace of mind.
Opportunity to Borrow Foreign Currencies
Many investors primarily want to borrow U.S. dollars, but that is certainly not always the case. Whether a person wants to invest in a new business in Nicaragua or purchase personal real estate in Panama, they may be interested in securing other currencies. Offshore banks in places like Latin America can loan funds in alternative currencies, many of which have varying interest rates that can be advantageous to investors or anyone in need of financing.
Potentially Lower Overhead Fees
A big part of choosing the right financing option is what kind of overhead fees are involved. Any time money changes hands, expect that there are costs that go to pay bank employees, pay for the bank’s physical address and more. In Latin American countries, these costs are much lower, which translates to better loan rates and lower overhead fees for borrowers.
Can Help to Develop an International Portfolio
Finally, some individuals choose financing from Latin America because it helps them to expand their portfolio. Diversity is important in all areas, even when it comes to lending. International investors might want to consider branching out and securing an international loan in order to enjoy a more balanced, well-rounded portfolio.
Latin America is rapidly transforming in a hub of financing, and borrowers from around the world are taking advantage of the lower rates, banking stability and easy applications. Click here to learn more about how Latin American financing could be the best option for you.