Learn about the essential steps and programs available to entrepreneurs who already have operations underway in the United States. From the crucial understanding of the financial system to the presentation of unique programs for business promotion, this article will provide you with Raúl Vázquez’s advice to obtain credit for entrepreneurs and boost your business.
Before we get into the details, let’s meet our expert. As a funding officer for the Texas area at the non-profit financial organization True Fund, Raul is dedicated to helping small businesses, providing financing and education in finance, business plans, etc.
To learn more about his focus on the integral development of businesses, we invite you to check out the dialogue he had with Jaime Sánchez, CEO of Interlink FBC:
Understanding the U.S. Financial System
Now, let’s dive into the complexity of the U.S. financial system. For entrepreneurs in Latin America, who are often unfamiliar with this environment, understanding the U.S. financial system is critical. First of all, you have to know which institution to go to.
And how can we recognize which institution to go to? Identifying the current stage of your business: if it is in its early stages, at an intermediate point or has already reached a certain maturity. This classification allows you to select the most appropriate financial institution based on the specific needs of your situation.
For those entrepreneurs with businesses that have two or three years of experience, it is advisable to look to community financial development institutions, such as True Fund or others that also exist in the market. These entities are distinguished by offering low-cost financing and flexible conditions, especially designed for businesses in full growth. This selection strategy, in addition to providing financial support, drives your company’s continued progress.
Business Credit: Requirements and Necessary Documentation
To access financial services aimed at businesses with at least one year of operation, it is required to undergo a meticulous process that begins with the presentation of documentation. Among these documents, tax returns occupy a critical place, as they shed light on the financial health of the business.
But this process goes beyond a mere documentary formality. A deep understanding of the business model is a determining factor. Not only does it facilitate communication with the financial institution, but it also serves as a solid indicator of the entrepreneur’s ability to manage financing effectively.
Additionally, the possibility of offering assets as collateral is highlighted. Although not always mandatory, this alternative can prove beneficial, especially when it comes to more significant amounts. Businesses that have tangible assets, such as machinery or property, can use them as extra collateral. This approach provides certainty to the lender, and increases the chances of approval.
Overcoming initial challenges
What to do if your business doesn’t have a good first year? True Fund demystifies the idea that more money is always the solution. Instead of seeking financing to cover losses, it’s best to seek expert advice to identify and address the underlying issues in your business. The key is financial intelligence and effective management.
For entrepreneurs who are new to the United States, exploring the options for help can be overwhelming. Fortunately, there are organizations like Score and SBDC that, like True Fund, provide expert advice, from creating business plans to training in areas critical to business success.
Preparation for application
Preparation is essential to obtaining financing for businesses in the United States. Here we emphasize the importance of understanding and demonstrating how your business generates revenue, your business model , and the disposition of collateral (tangible assets or financial guarantees that you offer as a backup in the event of a loan default). Transparency and preparedness increase the chances of a positive response.
Why True Fund
True Fund not only offers business financing programs with customized amounts, ranging from $500,000 USD to $5 million USD for the acquisition of commercial properties, but also stands out for offering a program with interest rates below current inflation.
Contrary to what is commonly believed, True Fund has demonstrated strategic collaboration with large banks. This partnership has been beneficial for many entrepreneurs who, not meeting the traditional requirements of these banks, are referred to True Fund. The institution stands out for supporting underserved sectors, such as the Hispanic minority, thus expanding the opportunities of those excluded by conventional institutions.
Get credit for businesses in the United States
Accessing financing in the United States for your business is a process that requires understanding, preparation and collaboration with specialized institutions. The key is to understand the financial system, demonstrate the health of your company, and look for financing that aligns with the growth of your business.
We understand that preparation and mentoring are fundamental elements to overcome challenges and achieve higher levels of profitability and sustainability.
Although we at Interlink FBC do not directly offer these services, we are committed to providing you with access to highly qualified professionals who can provide you with the guidance and support you need. Contact us!
