What to Look for When Securing Financing in Latin America

International Banking ConceptSecuring financing for anything can be tricky, particularly in a turbulent economic environment or without excellent credit ratings. To make getting a loan for a small business or a personal expense easier, many borrowers are looking overseas. Financing in Latin America can be easier to obtain because of less stringent lending requirements and lower overall application and maintenance fees.

If you are open to the idea of obtaining financing in Latin America, here are the top things to look for when profiling prospective lenders and choosing the right loan for you.

A Country With Stability

Stability is important when it comes to securing financing, so you don’t want to borrow from an institution in a country with an unstable political regime or an unreliable banking system. It is always better to handle your financial matters in an offshore jurisdiction that is regulated and secure.

Belize, for example, is a top choice for those who want all the benefits of banking and borrowing in Latin America without taking the risks.

A Lender With a Solid Reputation

Once you’ve narrowed down the many options to a single stable country, investigate the reputation and security of borrowers. What you want to avoid is working with an offshore bank that has a bad reputation among past and current borrowers or customers.

Banks like Caye International Bank, however, boast great communication with clients and highly satisfied customers. Spend a little time learning more about lenders before signing the dotted line for a loan, especially if the terms seem too good to be true.

Financing in the Currency You Need

When securing financing in Latin America, pay close attention to the currency of any loans you qualify for. In countries like the United States, you might forget that you have a variety of options, since most lenders will only offer domestic currency to borrowers.

When you’re in Latin America, however, you’ll have access to a wide range of currencies. You might want US dollars, or you might want an international currency so that you can buy property overseas or expand your business in a new destination.

In addition, pay attention to any currency fluctuations and conversion rates that could impact your loan repayments or cash flow in the future. If you earn Euros but have to pay back your loan in US dollars, for example, you could be putting yourself at risk in the event of a major currency shift in years to come.

Competitive Interest Rates and Overhead Costs

Even though your loan is from an offshore destination, examine it like you would any other type of financing. See if there are any monthly or annual costs involved, and determine how much of an application fee there might be.

Compare interest rates to see if you’re able to get a good deal, and do the math to find out how much of each payment will be going to the principal and what will go exclusively to interest.

Latin America is a wonderful opportunity for borrowers to secure the financing they need without being subject to extortionate interest rates or predatory lending measures. 

Contact us today and let’s talk about the financing you need.


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.