Finding a loan for a business located in a US territory is not an easy task. There are hundreds of lenders willing to provide financing to businesses located on the US mainland, but tracking down capital to help your company grow if you are located in Puerto Rico, American Samoa, Guam, US Virgin Islands or the Northern Mariana Islands is a chore. Many business lenders are even timid about funding businesses located in Alaska and Hawaii, and they are states!
So What’s the Problem?
Although US territories are subject to different rules than US states, for most lenders it’s an oversight, compliance, or economic issue that prevents them from lending there. To put it bluntly, if a business in a US territory defaults on its loan, it’s a big pain for the lender to travel there and deal within that territory’s court system to foreclosure on the business or liquidate its assets. In Puerto Rico’s case, it has been the victim of significant economic and natural disasters over the last few years. Unfortunately, the current financial and infrastructural condition of Puerto Rico does not make it enticing for business lenders to extend capital there.
Do Businesses in Puerto Rico Need Capital?
According to a 2018 Small Business Profile prepared by the US Small Business Administration Office of Advocacy, there are over 43,000 small businesses in Puerto Rico that employ over 677,000 individuals. The reports’ figures represent an extremely large number of businesses that are regularly shutout from capital. SBA financing can be a viable option for businesses located in Puerto Rico, but many SBA lenders choose not to provide financing there for the same reasons outlined above.
Who is Lending to Businesses in Puerto Rico?
Fundbox, our recommended business credit line lender, provides capital to businesses located in all 50 States plus Puerto Rico and other US territories. Fundbox can fund $1,000 to $100,000 to most businesses in Puerto Rico and other US territories that have been in operation for at least 3 months. Fundbox has no geographic restrictions, no minimum credit score requirement, few industry restrictions and no collateral requirement. To obtain a loan from Fundbox a business owner needs to first register (registration takes about 3 minutes and there is no paperwork required), and if approved can receive funds the next business day. Fundbox offers extremely affordable capital to businesses located in Puerto Rico and other US territories; its rates start at only 0.4%, it has no prepayment penalty and it charges no origination or other fees.
Business owners located in Puerto Rico, American Samoa, Guam, US Virgin Islands or the Northern Mariana Islands can obtain affordable business financing from Fundbox. Accessing capital through Fundbox’s simple to use credit line or invoice financing is a great way for businesses in US territories to grow. Since Fundbox’s application, approval and funding process is all done online without any paperwork, businesses in US territories only need access to a computer and an active business bank account or accounting software to apply for financing from Fundbox.
Interested in learning more about loans for businesses in Puerto Rico and other US territories? Contact our 2019 Best Credit Line Lender Fundbox.