As financing becomes increasing difficult to obtain in places like the United States, potential borrowers are looking outside of the box to secure loans. Latin America is one particularly appealing destination to acquire financing, but there are still a number of myths and misconceptions surrounding the idea of financing in Latin America.
Get to know the truth, and debunk common myths, in order to find the best financing deals possible whether for your business, your education or your new home.
Latin American Loans are Only for Corporations: False
This is one of the most common myths, but it is absolutely untrue. Although many corporations from around the world choose to secure financing from Latin America for a variety of reasons, individuals can also take advantage of the affordable rates of lending.
If you require a loan to cover debt, medical expenses, sending a child to college or buying a home, financing from a Latin American lender can be a savvy move for any individual.
Latin American Loans are Flexible: True
One of the best things about securing financing in Latin America is that the loan terms are not set in stone. Depending on your income, credit scores, amount of money borrowed and a variety of other factors, your loan terms could be adjusted so that they fit in with your financial situation. For example, you might reduce the interest rate payments by opting for a less common currency, or you could extend the repayment schedule instead.
Offshore Loans are Illegal: False
This is an absolute fallacy and a myth that should not be perpetuated. Offshore banking, as a whole, is certainly not illegal. Financing from Latin American countries like Belize is a legal and appealing option for American citizens or individuals from all around the world.
While many American bankers might recommend that you stick with domestic loans, often because they are rewarded for securing additional clients, there is no reason why you can’t take advantage of lower costs, better terms and greater lending flexibility overseas.
Latin American Financing is Difficult to Qualify For: False
Many aspiring borrowers are under the impression that qualifying for a loan from Latin America will be challenging. In reality, securing a loan from a country like Belize can often be much easier than it would be in Europe or North America.
As the global economy struggles to improve, lending in places like the United States is tightly restricted, and those without set incomes or impressive credit scores may have trouble getting financing at any price. In Latin America, however, there is more potential for borrowers with less than perfect financial records.
Offshore Loans Can be Cheaper Overall: True
Another tremendous benefit of securing financing in Latin America is price. Thanks to a lower overall cost of living in many Latin American countries, application and overhead fees can be less expensive for the borrower. Over time, this can add up to big savings.
Although there are many myths surrounding financing in Latin America, getting to the truth can help borrowers better understand their options and choose the best loans for their needs.