How Your Business Could Benefit From International Lending

International LendingWhen most people think of taking out a loan, they imagine the smaller loans created for individuals. Lending in this form is usually to cover things like the purchase of a new house or the costs of a college education. It is important to remember that lending is also vital for corporations. In fact, the biggest and most frequent loans are often earmarked for large businesses who need an influx of capital in order to last another season, invest in inventory or purchase supplies to fulfill a substantial client order. Whatever your corporation needs the money for, international lending could be the answer you deserve.

Secure Loans With Lower Interest Rates

Unlike 30-year mortgages, one of the most common reasons to offer an individual a loan, corporate lending tends to deal with higher amounts of money for shorter time periods. This suits the corporate model better, but it also means that interest rates can be sky high. For a business, heading offshore for an international loan can be a simple yet effective way of reducing interest rates. All banks and lending institutions differ in this regard, so it is important to research what interest rates you can expect before choosing where to take out a loan.

Get a Corporate Loan in the Currency You Need

In the United States, we tend to assume that every lending opportunity will be in U.S. dollars. However, not all businesses do all or even most of their manufacturing, supply purchases or shipping in the United States. Many corporations don’t want a domestic loan in dollars and would prefer to take out a loan in the currency they will be using most often. Not only is this simpler, it can also reduce the costs of exchanging currency. While a minimal number of domestic banks can provide lending in international currencies, offshore banks tend to have several currency options available.

Enjoy Flexible Lending Requirements

After the economic crisis began less than a decade ago, loans have been harder and harder to come by. The stricter lending regulations are in place not just for individuals but for corporations as well, making it challenging to secure financing when you need it most. Thankfully, offshore and international lending banks don’t always have the same strict requirements in place. While your company will still need to withstand financial scrutiny, have sufficient collateral and have a plan in place to repay the loan, it is certainly easier to follow through with the lending process than it might be domestically.

International Lending Brings Businesses Privacy

Finally, it is important not to forget about the non-financial benefits of an offshore loan. Many corporations go to great lengths to avoid corporate espionage, to keep their financial history confidential and to prevent any of their business information from falling into the wrong hands. When you bank and take out loans internationally, you can expect greater financial privacy and more anonymity as a corporation.

Businesses large and small can benefit from taking out an international loan. If international lending is in your future, learn more and to get started today.


About this author

Caye International Bank Limited (CIBL) was granted an Unrestricted "A" Class International Banking License on September 29th, 2003 by the Central Bank of Belize and is regulated by the Central Bank of Belize which set the standards for liquidity and capital adequacy.