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Camino Financial Review

Camino Financial is an online lending platform that matches small business owners with financing even if their credit is poor. It’s also possible to find small loans, under $10,000, as well as loans for larger amounts, up to $400,000, with lower revenue and time-in-business requirements than rivals.

What does Camino Financial offer?

Camino Financial offers two types of loans: small business loans and microloans, depending on how much revenue your company generates annually.

Small business loans

  • Loan amounts: $10,000 to $400,000
  • APR range: 12.00% to 24.75%
  • Closing fee: 5%
  • Terms: 26 to 60 months
  • Minimum annual revenue: $90,000

 

Microloans

  • Loan amounts: $5,000 to $75,000
  • APR range: 21.60% to 30.00%
  • Closing fee: 6.99%
  • Term: 24 months
  • Annual revenue: $30,000 to $90,000

 

Camino Financial advertises a monthly interest rate as low as 1.0%, but it’s important to understand the difference between a monthly rate and the more familiar annual percentage rate (APR) which includes the cost of financing, including fees. When translated into APR above, a Camino Financial loan can be expensive, but you could pay it off early without penalty. There are no origination fees, but there is a closing fee. Loan repayment terms are once a month, and neither collateral or a personal guarantee is required. Camino Financial may place a UCC filing in case of default.

Renewing your loan is possible, but be aware you’ll need to have paid 50% to 60% on your loan before borrowing more. You may be eligible for better terms if your credit has improved since you took out your original loan.

Do you qualify for Camino Financial?

This is where Camino Financial stands out when compared with other online business loans — its credit requirements and other qualifications are more lenient than some rivals:

  • 550 FICO credit score or higher
  • Minimum of $30,000 annual revenue or $2,500 per month
  • 9 consecutive months in business or longer

In addition, your business’s rent or mortgage needs to be paid consistently on time and the last two years should be clean from any bankruptcies. You must also have a business bank account.

Camino Financial does not offer loans in Hawaii, New Jersey, North Carolina or Puerto Rico, and doesn’t work with the following types of businesses:

  • Auto dealers
  • Legal services
  • Nonprofits
  • Commercial real estate companies
  • Insurance companies
  • Hunting or gambling businesses

How to apply for Camino Financial

Applying for a small business loan with Camino Financial is relatively easy, and can be done by phone at 800-852-0655 or through its online application form. If using the latter method, you’ll plug in basic information, such as your name and the name of your business, loan amount and how you plan to use the loan. You can prequalify with a soft credit pull.

Once you accept the terms for your new loan, you can usually expect to have the funds delivered to your bank within two business days. A full application will most likely require you to submit certain financial documents:

  • Six months’ worth of bank statements
  • Mortgage or rent statements

Camino Financial: Is it worth it?

You might find more lenient eligibility criteria for credit and cash flow with Camino Financial than you would at a bank or even other online lenders. But it comes with a cost: APRs as high as 30.00% when you translate its monthly interest rate plus closing fees. That’s likely on par with similar alternative lenders, but you might find rivals with better starting rates, especially if your credit is strong.

But Camino considers applicants who may otherwise be turned away. Twin brothers Sean and Kenny Salas founded Camino Financial in 2016 with an eye toward helping entrepreneurs who struggle to obtain traditional business financing, small business owners like their mother who lost her restaurant chain when the brothers were 12. Supporting a thriving but underbanked U.S. Latino business community is one reason Mexico-based Crédito Real recently backed Camino with an $8 million investment.

Plus, Camino offers support designed for minority business owners you might not find at competitors, benefits such as private consultations with business experts which can be held either by phone, instant chat or email. Other perks include in-person workshops and networking events held at Camino’s headquarters in California, along with discounts on such services as insurance, bookkeeping and tax preparation.

 

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