Fintech, the cheapest alternative to acquire a loan for your company

A single request to multiple parties

Thanks to the innovative technology of Fintech, for the first time you will have the opportunity to  request a loan  not only from a financial institution but also from  thousands of investors  interested in lending you. You will have new possibilities to find the best loan with the conditions that are most favorable to you. This process changes the credit world since you  do not depend on the decision of a bank . In this way, you become an actor in your search for funds. By negotiating with a multitude of investors, you can  lower  your loan interest rates . Invest Latam proposes direct access between companies and investors both in Colombia and abroad to reinforce the flow of loans to SMEs.

Why are interest rates lower in Fintech?

You should bear in mind that investors in general seek to improve their returns from traditional products such as bonds, CDs or stocks. Such financial products, depending on risk taking, can have a yield between 3% and 10% per year for bonds and CDs in Colombia. In countries like the United States or England, such products yield on average  below 2% . Stocks are a long-term investment product and depending on the sector and the size of the companies, they can generate higher profits or losses. Therefore, the platform allows the local and international investor to find an  alternative of performance  for a medium term superior to the classic products. Lending to small businesses it becomes attractive in terms of profitability and term.
Direct agreement between companies and investors for a business loan.

Forget about the bank

How does a bank work? It is an entity that accumulates money from deposits and savings to lend them to third parties. That seemingly simple operation requires control over incoming and outgoing flows. What happens if all the clients of a bank withdraw their money? What happens if the loans are not paid? In financial terms, this management is called: liquidity management. The bank measures the risk that depositors will be able to ask for their funds back and measures the risk that loans will default. For this activity, the bank is remunerated by being the intermediary between depositors and debtors. With our technology, we manage to remove the bank from the middle so that both parties meet directly. No banks. Without intermediaries. Therefore, the interest rates for both investors and debtors are improved. At  Invest Latam , we have the mission of creating a new link between companies and investors without intermediaries. This direct link is a new way of looking at the world of credits. Not bad right?

Improve your company profile to apply for a loan

To have access to  people willing to lend you , you will have to maximize the strength of your company’s profile. With this, you will improve the chance of being approved and you will generate more trust among the users of Fintech platforms. How to improve your profile? First of all, the most important parameter for granting a loan is  credit history . Make sure you are up to date with payments to suppliers, customers, banks and administrative expenses. Any delay will be highlighted on your loan application which will reduce the likelihood of being accepted. On the other hand, it is necessary to keep an accounting up to date with a  public accountant.. If you have additional information such as awards, agreements, patents (etc …) which will improve your profile, we recommend mentioning them as they will add points to your application. The more platforms know about your company and partners, the better. Keep in mind that the information provided will be cross-checked with various sources to ensure the accuracy of the data. You will also need one or more  guarantors  with the ability to pay to reimburse your credit in case of default. The more robust your profile, the more attractive you will be to investors and thus you can  better negotiate the interest rate  for your loan. Now that you know the benefits, take advantage and register on our page:  www.investlatam.com  and you will be able to find different options to obtain the  credit you need  at the best interest rate.
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