With few exceptions, most businesses rely on loans of some kind throughout their history. Many new companies require funding in the start-up stage of their business, which helps to set up the company before any profits can be made.
Other companies might need financing seasonally to carry them over to the next quarter or the busy time of year for their industry.
Whatever the reason behind the need for financing, the reality is that many businesses are looking further from home for their loans. Find out why so many businesses are turning to financing in Latin America.
Financing Available in a Range of Currencies
When companies seek loans domestically, a potential drawback can be that financing is only available in one type of currency.
While many businesses only operate domestically and don’t mind this limitation, some large corporations find it very challenging.
When you opt for a loan from a Latin American country, you may be able to secure financing in a number of different currencies that better fit your business needs.
Easier to Secure Latin American Loans
After the economic downturn, loans have been increasingly difficult to qualify for in the United States. Without excellent credit and a history of financial profit, which can be tricky to prove as a new business, traditional domestic loans may simply not be available to you.
Overseas in many Latin American countries, such as Belize, the potential for financing is much broader, and you may find that there are more opportunities for lending than anticipated.
Low Overhead Fees and Costs for Latin American Loans
Many businesses may realize that a large portion of their loan fees, application costs and monthly banking fees could be reduced by securing an offshore loan in a Latin American country.
In most Latin American countries, the cost of living is well below what it might be in the United States. That means that banks can still profit when charging customers and borrowers lower fees.
Stable Banking and Political Systems
Finally, it is important to note that the stability of both the banking systems and governments in Latin America play a large role in the appeal of business financing.
Companies generally don’t want to take out a loan that might devalue thanks to inflation, nor do they want to take out a loan from a bank that could potentially fail, which is why stability in places like Belize is ideal.
These examples highlight some of the reasons that financing from Latin America can be suitable for any business. Click here for more on the perks of international lending.