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New Business Financing Alternatives for Hispanic Owned Firms

New Business Financing Alternatives for Hispanic Owned Firms

http://www.diariolasamericas.com/dinero/nuevas-alternativas-acceso-a-capital.html

 (Miami, FL)  January 17, 2013 –

While not perfect , America offers more opportunities for ethnic and minority groups than any other nation in the world. The number of companies considered as minorities – those in which 50% or more of its tasks are operated and controlled by one or more individual blacks , Asians or Hispanics – across the country is growing daily .

The Census Bureau reports that the number of minority-owned firms increased by 44% between 2002 and 2007. And from 2007 to the present , the numbers keep growing .

As these companies look for the “American Dream ” are turning to new sources of funding. ” The On Deck and Kabbage signatures are only a fraction of the total market that gives loans to alternative business. Great lenders have raised capital and independent sales organizations, known as ISO’s, are the next gold rush. The industry cannot grow without the flow of loan applications and most providers of these funds will depend on the ISO to make their sales goals each month,” said Sean Murray, founder of Merchant Processing Resource and Dailyfunder.com, an internet forum.

After seeing an opportunity to gain strength in this underserved market, companies like Lendinero associated itself with 15 nontraditional lenders and funds including On Deck Capital, Swift Financial, CAN Capital, Rapid Advance and others to obtain the best terms and interest rates for Hispanic businesses or minorities. The company emerged as a connector between minority firms and nontraditional lenders, which in the alternative funding space do not have the knowledge to break the cultural barriers.

Lendinero, based in the heart of Miami’s Financial District, Brickell Avenue is changing consumer habits for Hispanic business owners obtain a loan via the internet .

“These entrepreneurs are accustomed to traditional banking methods in their countries of origin. At first we had doubts if these companies would feel comfortable to apply for a loan and submit their bank accounts in our online portal, but when they saw that we can deliver a credit decision in two days and they avoid a trip to our offices they were very satisfied . Today we have Hispanic business applying for loan throughout the U.S. ,” stated Gilberto (Gil) Zapata, founder of Lendinero .

Today besides Lendinero, there are a number of financing options online such as Prosper, Lendingclub, Kickstarter , and Pay Pal. These are additional sources of funding that are not being exploited by the new generation of entrepreneurs.

Government agencies are also educating this segment of the market for new ways to raise capital for their businesses by providing workshops and one to one business advice.

Cornell Crews, program director for Partners for Self -Employment Inc., a non for profit agency and a U.S. Small Business Administration certified micro lender said ” minority businesses need help in obtaining alternative financing methods. Around two years ago, many small businesses did not know what that were on-line platforms such as Kickstarter, a rewards based crowd funding site. Today, thanks to the support of many financial experts, companies are learning new and innovative ways to access capital.”

Accion USA, The Southern Florida Minority Supplier Development Council, an affiliate of the National Minority Supplier Development Council and the Minority Business Development Agency of the U.S. Department of Commerce , are helping minority owners in a similar manner . These agencies located in South Florida have formed indirect alliances and consult with Lendinero, knowing that  they communicate with
Hispanic business owners in their native language and understand their culture.

Testimony

Nestor Membreno, a native of Nicaragua learned about expensive commercial loans when he attended a business seminar at Partners for Self -Employment Inc. When Membreno needed business financing business for Jose Herbs & Produce Inc., his bank rejected his application for a business loan . He went turned to Lendinero and got approved for a business loan in two days and obtained funding within 7 working days. Two years later, Jose Herbs & Produce Inc. has accessed in excess of $100,000, while paying more than 20% in the annual rate. “Although these loans were expensive, I had the opportunity to establish business credit for the company and today I was finally able to get a loan at a traditional bank. Lendinero from Miami understood our needs and understood our international operations.”

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*The content has been translated.  All materials belong to “El Diario de Las Americas”.

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