People who emigrate to the United States often believe that they won’t have access to borrowing opportunities until they obtain a Social Security Number (SSN) since traditional institutions are commonly reluctant to offer loans to undocumented aliens. However, a new type of financing instrument has emerged to assist business owners who have not yet obtained their SSN so they can secure the funding they need to keep their businesses up and running.
These financing instruments are known as ITIN loans. In the following article, we will explain how they work, their advantages compared to other forms of financing, and how you can obtain one for your company.
What is an ITIN?
An Individual Taxpayer Identification Number (ITIN) is a document issued by the Internal Revenue Service (IRS) of the United States – the institution in charge of collecting taxes from individuals and businesses within the country.
Immigrants can apply and obtain an ITIN regardless of their residency status as this document is only used for filing taxes.
The process of applying for an ITIN starts by submitting a W7 form to the IRS along with other documents such as a driver’s license and school records. Typically, the IRS takes from four to six weeks to approve an ITIN application. All immigrants who incorporate a business in the United States are required to apply and obtain an ITIN so they can file taxes if applicable.
Nowadays, non-traditional lenders like Camino Financial offer ITIN loans, which work like a traditional installment loan but with the added benefit that the borrower is not required to present a Social Security Number (SSN) to apply for one.
How can immigrants get a loan?

With lenders like Camino Financial, the process of applying for a loan can be completed online, and it will only take the borrower a few minutes to fill the required forms. These loans are approved based on the applicant’s creditworthiness, credit history, tax records, bank statements, job situation, and other similar variables – just like any other loan.
The loan works similarly to an installment loan in which a fixed payment has to be made every month. A portion of the monthly installment will be used to amortize the loan’s principal. In contrast, the remaining amount will be used to pay the interest expenses resulting from the loan’s outstanding balance.
Currently, interest rates for these loans have been lowered due to the Federal Reserve’s decision to reduce its benchmark interest rate to 0.25%. This means that the current environment is particularly advantageous to get a cheap loan due to the favorable conditions of the credit market.
Meanwhile, it usually takes around 24 to 48 hours for online lenders to review and issue a response on the loan applications, as these companies use artificial intelligence and technology to expedite their internal processes.
Advantages of ITIN loans
For undocumented individuals, this type of financing is one of the best alternatives to get funding in the United States. The following is a summary of all the advantages of securing an ITIN loan for an immigrant business owner:
- It will help you in the process of building your credit score, as every installment payment you make on time will contribute to strengthening your credit report.
- You will not be required to present a Social Security Number (SSN) to apply for the loan.
- Applying for the loan can be completed in a few minutes. This avoids the need for visiting a branch, scheduling an appointment, or waiting in line to be served by a representative.
- Response times for the loan are typically faster compared to regular loans offered by traditional financial institutions.
- The funds obtained through the loan can be used for any financial need that the business may have, such as buying inventory, covering a temporary cash gap, or buying equipment.
- The interest rates and credit periods offered are typically flexible, ranging from 24 to 60 months, depending on the provider.
Bottom line
In the past, immigrant business owners had little to no alternatives to obtain financing for their businesses. This era has come to an end. Modern companies are spearheading this effort to help non-resident business owner securing the funding they need to keep growing their businesses.
These loans can be used to obtain funds for an immediate cash need, or they can also be employed as a bridge loan that could be exchanged for another loan with more advantageous conditions once the applicant receives an SSN.
Meanwhile, technology has enabled lenders to offer faster application and response times, which results in savings for borrowers in the form of lower fees.
If you are an immigrant in need of borrowed funds, an ITIN loan can be a convenient alternative for you.
Also read: 7 Websites for Private Student Loans