Finding financing is something that most individuals, and certainly most businesses, go through many times. On a smaller scale, people might use credit cards or finance the purchase of a new car. On a larger scale, financing can be important for things like securing a college education, buying a house or expanding a small business.It’s Easier to Qualify for Financing in Latin America
One of the biggest challenges faced by those who are in need of financing is actually qualifying for a loan. Particularly in the years after the economic collapse of 2008, banks have been more cautious about lending. This is especially true when it comes to smaller businesses or self-employed borrowers.
Thankfully, there are other options if you don’t qualify for lending domestically. In places like Latin America, banks are not as strict with their lending policies. That means you can qualify for loans without putting down a tremendous amount of collateral or needing perfect credit scores.
Financing Costs May be Lower in Latin America
Although financing is inherently a way to gain access to capital in the short term, it also involves paying for the privilege of borrowing that money. There are a number of fees that borrowers may have to pay throughout the lending process.
To start, it is normal to pay some kind of a loan application fee. Then, annual or even monthly fees are common through some lenders. While it is normal to accept these terms, jurisdictions with lower costs of living tend to have lower banking and financing fees as a result.
This could mean that financing secured from a Latin American bank comes with lower fees than a loan from an expensive city like Hong Kong or New York.
Latin American Loans Often Come with Better Terms for Borrowers
Whether you are looking for a corporate line of credit, working capital for a business expansion or a private loan to purchase a vacation house on the beach, you will need to pay close attention to the terms of any potential lending agreement.
While these terms can vary significantly from loan to loan, they are often more favorable to the borrowers in Latin America. Everything from loan repayment deadlines to interest rates can be adjustable, helping you find financing that meets your needs and your budget.
Offshore Banks in Latin America Offer Loans in Multiple Currency Types
Finally, it is worth noting that not all bank loans come in the same type of currency. If you’re looking at domestic financing options, then they will all likely be in the same local currency. However, that might not be the best choice for you.
If you’re buying international real estate, for example, you’ll want to seek financing in a particular currency type, whether that is Euros, Yen or anything in between. Having the option of choosing currency type is something far more common through offshore lending banks in places like Latin America.
With so many reasons to consider financing in Latin America, it becomes clear why this is such a popular option and why Caye International Bank is such an appealing lender.
Contact us today and let’s discuss your banking needs.
