If you don’t have cash, it’ll be hard to make it. We’ve heard it time and time and again, especially in Costa Rica. But, how true is this old time phrase? Although it still holds water, without cash any venture or project will surely fail, however times have changed and options have become available. The once very true saying, now has some nuance. Three sources of loans are available, yet same as in North America, a person must dispose of a down payment, typically up to 30% of the value is sought after in Costa Rica, and sometimes up to 40% of a down is required.
If you’ve been in business for at least two years you may qualify for a business loan at the Banco de Costa Rica or Banco Nacional. If you have residency you can apply for a personal loan. Banco Nacional for example could lend up to $300,000 USD or the colonne equivalent for up to 30 years. Currently, you can expect interest rates to start at 7.2% for USD borrowed amounts and 9.25% for amounts borrowed in CRC. In addition, you must provide proof of a stable income, usually six months if you’ve been a client for some time, and income tax statements. Just keep in mind, documents are to be produced in Spanish.
As well, many independent financing is now becoming available, and that is indeed a sign that times are changing. Lending firms have broadened their prospects and opened operations to international markets. You can find private loans, of course a management fee usually applies of 1.5%. Nonetheless, other banking institutions are in the market. There is Scotiabank that has been implanted in Costa Rica for many years now, and financial institutions like Banco Lafise and Bac San Jose, both lend to private individuals.
It is clear in an ever evolving market, such as Costa Rica, that typically was a “cash is king“ marketplace, has now been impacted by the global changes due to migration. It is reflected in the financing options that have become available. The fact that they are now available, whereas just a few years ago external financing was not even dreamt of, is noteworthy. Worldwide, we are facing housing shortages, populations are migrating and climates are affecting where we choose to live. We are in a time of a great global migration, and we are only in the beginning phases of it. Currently, Costa Rica is receiving a huge influx of people and demands on housing is that it is simply trying to keep up. We definitely see it in Costa Ballena, where large expat immigration has been happening, and for many years now. Truly, it has shaped the coast into the community it currently is, a wonderful melting pot of great minds meeting!
