{"id":31341,"date":"2020-02-01T08:00:12","date_gmt":"2020-02-01T13:00:12","guid":{"rendered":"https:\/\/www.escapeartist.com\/?p=31341"},"modified":"2021-01-19T09:52:04","modified_gmt":"2021-01-19T14:52:04","slug":"how-to-take-advantage-of-the-colombian-consumer-lending-market","status":"publish","type":"post","link":"https:\/\/www.escapeartist.com\/blog\/how-to-take-advantage-of-the-colombian-consumer-lending-market\/","title":{"rendered":"How To Take Advantage Of The Colombian Consumer Lending Market"},"content":{"rendered":"

Colombian Consumer Lending Market<\/strong><\/h2>\n

If there\u2019s one thing you can safely say about Colombia, it\u2019s that the financial sector is thriving. There was once a huge problem in the country where most financial transactions used to go undocumented and ever since 2010, they\u2019ve made great headway in terms of formalizing the banking system. According to reports, the share of Colombian bank assets relative to the GDP <\/span>was at 53.16%<\/span><\/a> back in 2016 and was expected to get higher over time.\u00a0<\/span><\/p>\n

This rising share of bank assets effectively tell us that there\u2019s a huge demand for financing options in Colombia. The rising need for finance tells us that the investments scenario is well and thriving\u2014something we should seriously consider when devising our retirement plans. Whether as part of your SDIRA or your existing portfolios, Columbia represents a brilliant investment opportunity in the consumer lending market.<\/span><\/p>\n

This article will discuss the existing state of financial markets in Colombia, the investment opportunities and I\u2019ll also speak of some associates involved in lending ventures.<\/span><\/p>\n

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Investment Environment In Colombia<\/b><\/h2>\n

If financial data is any indicator, FDI<\/a> inflows into Colombia have reached an all time high. In 2018, <\/span>nearly $11.53 billion dollars<\/span><\/a> were sourced from foreign investors looking to make it in the Colombian economy. The country has a fairly high ease of doing business ranking, standing in the top 30% of the highest ranking countries across the world. Additionally, it has the 3<\/span>rd<\/span> highest FDI inflow throughout Latin America.<\/span><\/p>\n

This is mainly attributed to the economic restructuring and the introduction of new migrant-care policies implemented by the state earlier this year. Every day, more migrants are flying into the country looking to invest in real estate and other business ventures to make a living in the Central American country. The country\u2019s macroeconomic indicators have been respectable over the past couple of years, with <\/span>GDP growth sustained at 3%<\/span><\/a> since 2017. If trends continue, the World Bank indicates that growth might reach 3.6%.<\/span><\/p>\n

With the improving economic conditions in Colombia, spurred on by greater investment, we can safely conclude that consumer expenditure patterns might also change. As native Colombians make more money and more foreigners bring business into the market the financial market might experience another boom in the next few years. With rising prices and a greater range of goods and services, the financial sector will have to offer a greater range of investment options if these trends are to continue. It is this dynamic that the people over at the <\/span>Gutierrez Group<\/span><\/a> are capitalizing on, trying to get ahead of the financing game before major banks crowd out the market\u2014if at all. They have honed in on two market gaps in the finance market and consumer lending which can be filled by private lenders\u2014the taxi-cab market and real estate.<\/span><\/p>\n

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Why The Taxi Cab Market?<\/b><\/h2>\n

While this may sound a little dramatic, Colombia is right now the battleground for plenty of ride-hailing startups. A market that was once dominated by world-renowned corporations like Uber suddenly finds itself short of supply as the state declares these companies illegal. The Colombian government ordered Uber to halt their work on December 20th, 2019 <\/a><\/span>and declared another local ride-hailing service as illegal. Everyone\u2019s scrambling to get a piece of that market as another Chinese ride-hailing service called <\/span>DiDi moved in<\/span><\/a> to fill in this vacuum as both Uber and the local ride-hailing services gear up for a legal battle against the injunctions.\u00a0<\/span><\/p>\n

As of January 31, 2020 Uber will no longer be available in Colombia, and having 88,000 drivers in the country, they will all likely be scrambling for new companies or to join the world of the local taxi companies.<\/p>\n

Colombia, Bogota in particular, is probably the first place where I\u2019ve heard of public transport strikes bringing entire cities to their knees. This has been a recurrent problem in Bogota where even now cab owners are out on the streets protesting against the practices of these ride hailing apps\u2014particularly Uber. These dynamics only tell us this\u2014Bogota needs a lot of taxis. This is the dynamic that the Gutierrez Group is working in.\u00a0<\/span><\/p>\n

As more people look to buy cabs in an effort to replace the monopoly created by ride-hailing apps and service providers, they need an increasing amount of financing. Private lending merchants are having a hay-day making huge returns on these loans. The scheme suggested by the Gutierrez Group is as follows:\u00a0<\/span><\/p>\n

Sutax, a leading taxi brokerage and financing entity in Medellin and its metropolitan area is partially owned by Gutierrez Group . Sutax provides loans to people looking to buy taxis. You basically invest to assist with the financing schemes and get returns when the loans and interest are paid off. The <\/span>returns are projected<\/span><\/a> as follows:<\/span><\/p>\n