The American Chamber of Commerce of El Salvador held its first Legal Business Meeting, and Torres Legal was the invited firm. This initiative was created to discuss trending topics and strengthen networking.

Our managing partner, Hector Torres, was responsible for the breakfast talk and shared with the attendees some ways to obtain capital for companies through alternative means other than loans offered by financial institutions, stock offerings, and the most commonly known methods for most entrepreneurs.

Crowdfunding is an online financing method that does not require financial intermediaries such as banks. Instead, it generates economic growth through user donations, which can be altruistic and/or in exchange for some form of reward.

“The entrepreneur uploads their project to an online platform, providing a description of what it entails, the required funding amount, the expected return on investment, and the incentives offered,” explained our finance specialist.

Torres also recommended Peer-to-Peer (P2P) loans, which are credits granted through a platform acting as an intermediary to connect individuals or companies in need of financing with investors interested in putting their money into projects or businesses of their interest.

According to our specialist, these types of loans provide an alternative form of financing that often offers higher returns than traditional channels such as bank loans.

“These loans are available for individuals, small, medium, and large companies. This is an excellent way for people to obtain low-interest loans if they have a good credit history,” Torres affirmed.

Similarly, Torres pointed out that Venture Capital is a good option as it involves structured investment funds that provide financing to high-potential companies: “There are typically different types of funds depending on the stage of the company they decide to invest in: early stage (Seed), early-stage (Early-stage), and growth stage (Growth stage).”

Our managing partner mentioned another option: real estate securitization, which is a financial process where real estate assets are grouped and sold as negotiable securities in the capital market.

According to Torres, securitization allows property owners to obtain financing through the sale of negotiable securities, instead of having to secure financing through traditional bank loans: “This way, real estate owners can unlock capital and use it for other investments or reinvest it in their business.”

Additionally, Torres introduced attendees to investment through asset tokenization, which converts a tangible or intangible asset into digital tokens on a blockchain. Our lawyer indicated that the tokens represent a fraction of the total value of the asset, allowing investors to buy and sell these tokens on a secondary market.

“Asset tokenization offers greater transparency and security, as all information about ownership and transactions is recorded on an immutable and decentralized blockchain,” Torres emphasized.

If you have further questions on this or other topics, you can contact us through our social media or by visiting our offices located at Cuscatlán Street, #4312, Escalón Neighborhood, San Salvador, El Salvador.