5 Advantages of Obtaining Financing in Latin America

Offshore LendingWhether you are operating a small business, running a multinational corporation or you are simply an individual ready to upgrade your home, there are plenty of reasons that you could benefit from financing in Latin America. Loans large and small are available from around the world, but banks, lenders and financial institutions in Latin America can offer a variety of perks.

Here are just five of the countless benefits of obtaining the financing you require from a bank in Latin America.

1. You Can Take Out a Loan in a Variety of Currencies

Domestically, it rarely occurs to individuals that you can borrow money in more than one currency. However, when you secure financing in Latin America through an offshore bank, you might be able to pick from a variety of different currencies.

This can be helpful if you are planning to buy property internationally or expand in a new country, but it can also be a way to minimize risk by picking a currency you believe to be stable.

2. Lending Requirements are Looser Overseas

After 2007, as the economy began to head down in the United States, lending almost entirely dried up on a domestic level. Qualifying for a home loan, a car loan, educational loans and business lines of credit became harder than ever, and down payments of up to 20 percent became commonplace.

Thankfully, many lenders in Latin America have far looser requirements, which can translate to higher rates of acceptance. If you don’t qualify for a traditional loan in your home country, obtaining financing in Latin America might be your next move.

3. Latin America Boasts Lower Overhead Fees

In destinations where the overall cost of living is lower, companies are able to charge lower rates for their customers. When it comes to loans in Latin America, this can translate into fewer banking and maintenance fees. By saving money on fees, you can repay your loans in less time, which is great news for individuals and businesses alike.

4. Interest Rates are More Variable Than They Are Domestically

Once your credit score has been determined, it is hard to find any variation in interest rates for borrowers. In Latin America, however, these rates are not so set in stone. They can be influenced by the currency you want to borrow, the size of the loan, your financial reputation, your assets and a whole host of other factors. This gives you more flexibility to negotiate the terms of your loan and work with a lender that gives you exactly what you need.

5. Latin America Offers Stability for Borrowers

Finally, it is important to note that while many of the benefits listed above can be applied to other offshore destination, Latin America comes out a winner in terms of stability. Borrowers should always seek to obtain financing from destinations and banks where there are clear regulations but no government or banking turmoil. This ensures a smooth repayment schedule for you.

Obtaining financing in Latin America can be a savvy decision for individual borrowers as well as businesses from around the world. Find out more from the financial experts at Caye International Bank.

 

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.