HOW TO GET A BUSINESS LOAN FOR HISPANICS?

Andrés Zambrano tells us that, in his experience, the biggest challenge that latinos (and minorities in general) have to face in order to become entrepreneurs in the united states is the lack of opportunities, together with the little information they have about their options for accessing credit.

For that reason, it is a priority for entrepreneurs and minority business owners in the U.S. to receive financial education, learn how to structure business models, and begin to build influence and relationships that will help them GROW their businesses.

To address the problem of lack of financial literacy among Latinos, an important question. What types of lending options are available to this community? Andres Zambrano comments that there are currently two types of business loans available to Hispanics:

• Loans for entrepreneurs

• Loans for business owners

As an entrepreneur, there are several options to access credit. One of them is through personal loans and the requirements to access them are:

• Have a credit score higher than 700 points.

• Have a minimum annual income of 40,000 USD (verifiable).

• Show permanent income for 1-2 years.

Another simple way to access credit is through credit cards, and the requirements to do so are practically the same as for a personal loan.

Finally, the cheapest but also the most complex option to apply for a loan is through SBA (Small Business Administration) backed loans for startups.

Andrés Zambrano tells us that this is the most complicated way to access a loan since it requires more preparation. To start the process it is necessary:

• Have a business model.

• Present concrete financial projections.

This information will be presented to a committee which must prove that:

• The business owner assumes the same amount of risk as the lender.

• The person requesting the loan has experience in the field in which he/she wishes to undertake.

Based on the data presented, the committee determines the viability of the business and presents various loan alternatives, or rejects the project. It should be noted that the maximum loan amount for this type of loan is US$5,000.

On the other hand, loans for owners (companies with more than two years in business) are intended to finance working capital and are calculated based on the average income of 1 to 1.5 years of the business.

These loans do not require assets, but involve a higher cost that varies depending on the risk profile of each company.

One of the advantages of these loans is that they are easy to acquire since they only require a personal credit score or credit history evaluation and can be accessed within 24 to 48 hours.

Once your business information is submitted and confirmed, the credit application is submitted to different lenders, each one makes an offer and the applicant accepts the one that best suits his needs and those of his business.

Currently, there are very easy to use platforms to carry out this procedure. Minority Fintech is one of them and it is as simple as filling out a form in less than 20 seconds and starting your loan process. The platform will take you by the hand every step of the way to grow your business through training and advice.

Interested in growing your business? Contact us now. You can also become a Minority Fintech partner.