You don’t have to be a financial whiz to understand that financing in Latin America is growing increasingly popular for individuals and corporations around the world. Learn more about what to expect from Latin American financing, and then take a closer look at how to choose the right financing to meet your budget and your needs.
Why Latin American Financing?
The first thing to consider as you begin your search for financing is why Latin American lending stands out as such as popular option. To start, many borrowers, both individuals and corporations alike, find it much easier to qualify for financing from Latin American lenders.
In places like the United States, borrowers need to have impeccable credit, collateral and proven and consistent income, and that is in addition to agreeing to less-than-ideal lending terms. In addition to the ease of securing financing, Latin American lending options may be more stable, they can offer a range of financing options and they can even provide loans in multiple currency types from around the world.
Choosing the Right Latin American Jurisdiction
Once you have made up your mind and decided to move forward with Latin American financing, you’ll need to narrow down the options and focus on a particular country that offers the financial climate you prefer. Stability should be an absolute priority, both in the financial and political sense. In addition, you may want to borrow money from a jurisdiction where the overall costs of living and operation are low, which could mean fewer expenses for you in the future.
If you plan to store assets in the same jurisdiction for convenience, then you may also need to look into the tax rates for investors and corporations in the jurisdiction. Some countries in Latin America, such as Belize, offer incredibly favorable tax arrangements for foreign investors that can significantly limit or even eliminate what you’ll legally need to pay in taxes each year.
Picking the Best Latin American Bank for Financing
After determining the jurisdiction that will work best for your financing, it is time to choose a lender, or bank, that meets the rest of your needs. Perhaps most importantly, make sure that staff at the bank can communicate with you in your preferred medium and in the language of your preference.
Thankfully, most financial professionals in Latin America speak English fluently and are excellent communicators. You should also research the reserve requirements of a particular bank, which can indicate how stable and secure they will be moving forward.
Exploring the Full Range of Financing Options in Latin America
The final step in selecting the right Latin American financing is to get to know the various lending options available. To begin, clarify whether you’re looking for corporate financing or personal financing.
Just some of the options that will be available include working capital, real estate loans, capital purchases, secured credit loans, commercial construction loans, personal loans and overdraft facilities.
For a number of reasons, financing in Latin America can be a fantastic option for many borrowers. One of the best choices for personal or commercial lending is Caye International Bank, located in Belize.