Financing for Hispanic Businesses is an untapped market
First, are there sufficient financing programs to assist Latino Owned Businesses? In brief, long-term financing is very difficult to obtain. At last, the financing community is online. In brief, online lending can make a difference to businesses in general. On the one hand, it’s not that financing is not available to Latino Owned Business.
To point out, there are over 20 million small businesses in the United States. Approximately 4 million are owned by Hispanics. To enumerate, this means that about 20% of all businesses in the United States are owned by Latinos. Banks continue to have stringent requirements. In addition, most Hispanic owned businesses generate anywhere from $20,000 to $400,000 per month.
Moreover, many can not turn to a bank as their first option. Banks don’t like to provide loans from $20,000 to $100,000. More than 50% of latino entrepreneurs manage a small business.
Hispanics have been place their trust on banks. Why? Latinos believe that banks are the primary source for financing. Online lending is something new to them. Only a few online finance companies cater to this market.
Marketing to latinos can be expensive. For example, staffing, documentation, materials, and more. Language is just one factor. There are many other factors to analyze.