There are many moments in life when lending is a necessity. Entire countries require loans from time to time, individuals may need to take out a mortgage, cover an emergency medical cost or pay for education and businesses of all sizes take out loans in order to expand or pay suppliers.
Whatever the financing might be for, Latin America is now the go-to place to secure a loan. Before you fill out the application form, here are five things you might not know about obtaining financing in Latin America.
1. Loans From Latin America Can Be Easier to Qualify For
If you were recently rejected for a business line of credit or a personal loan in a country like the United States, which is becoming tighter and tighter with its lending regulations, then looking to Latin America is often the answer. Many borrowers don’t realize that securing lending is easier in Latin America than in many places around the world, which means that you can qualify for bigger loans or better interest rates.
2. Financing is Available in Numerous Currencies
If you’ve only ever contemplated getting a loan in the United States, then you’ve probably also never thought about getting financing in anything but American dollars. However, there are plenty of other currencies available around the world, and something other than the dollar could be a better fit. For example, you might want to buy a home in Europe, in which case financing in Euros can help you avoid currency conversions. If you want to invest in a company in Canada, skip the middleman and take out a loan in Canadian dollars right from the beginning.
3. Overhead Fees Can be Lower For Latin American Financing
One of the unexpected expenses when taking out a loan in any country can be the associated fees. You might have to pay at the initial loan application or have regular overhead fees monthly or annually. While such fees are commonplace whether you take out a loan in the United States, Asia, Europe or Latin America, they can differ drastically from place to place. In Latin American destinations like Belize, where the cost of living is low, the fees are also typically lower for the borrower.
4. Interest Rates for Offshore Loans Can Vary Significantly
Interest rates vary wherever you secure financing, but they can vary more than normal in Latin America. Borrowers can use this to their advantage by shopping around in order to find the lowest possible rates. Changing your collateral or even your choice of currency can significantly alter your anticipated interest rate, potentially saving you money.
5. There are Multiple Types of Latin American Loans to Choose From
Finally, keep in mind that Latin American financing is available in a range of types. You can get a mortgage on a property, a line of credit or a business loan depending on what you intend to do with the financing.