Camino Financial Business Loan Review
 | Starting APR range: 32.00% Best for: Small business owners and minority entrepreneurs looking for microloans with no collateral required. |
Pros and cons of Camino Financial
| Pros | Cons |
|---|---|
Low minimum annual revenue requirement No prepayment penalties Collateral isn’t required Provides educational resources for women and minority entrepreneurs | Low funding amounts High interest rates Some restrictions on how to use the funds Longer time to funding compared to other online lenders Not available in HI, NJ, PR, MI, NV, or the Caribbean Islands |
Camino Financial small business loans review
Camino Financial is a Community Development Financial Institution (CDFI) that partners with other organizations and lenders to provide affordable small business financing to companies who might struggle to qualify for traditional business loans. While Camino Finance looks at your credit and business profile, it also considers your company’s overall potential, making it a good option for low-credit businesses and startups with limited revenue. Like other CDFI lenders, Camino Financial provides educational resources and small business support to help underserved communities and minority-owned businesses succeed. Established in 2014, Camino Financial has a track record of providing over $200 million in funds to more than 9,000 business owners.
Who is Camino Financial for?
- Businesses needing small loan amounts. Camino Financial’s maximum loan amount caps at $50,000, making them ideal for low-cost expenses or short-term projects.
- Low-revenue companies. You only need $30,000 in annual revenue to qualify for financing with Camino Financial.
- Relatively new businesses without collateral. You can grow your business with Camino Financial without needing to put any assets at risk.
Camino Financial small business financing at a glance
| Product | Loan amounts | Repayment term | Estimated interest rates | Fees |
|---|---|---|---|---|
| Term loans | $10,000 to $50,000 | 24 months | 32.00% to 45.00% | Origination fee: 6.99% |
Term loans
A short-term business loan from Camino Financial can provide between $10,000 and $50,000 to cover a wide range of business expenses like startup costs, working capital, payroll, inventory, equipment, marketing campaigns and more. These are unsecured business loans, meaning you don’t need to pledge collateral to secure the debt. Repayment terms are 24 months, with monthly payments automatically deducted from your business bank account.
Camino Financial’s interest rates are relatively high compared to some other online lenders — starting at 32.00% versus Funding Circle’s lowest rate of 11.29%. While Camino Financial charges an origination fee of 6.99%, there are no fees for repaying your debt early.
Note that you can’t use a Camino Financial term loan for management buyouts, business acquisitions, investing in cryptocurrency or personal expenses.
Camino Financial borrower requirements
| Minimum annual revenue | $30,000 |
| Minimum time in business | 12 months |
| Minimum credit score | 670 |
Camino Financial’s requirements are fairly lenient, stating that a business owner’s credit history doesn’t always accurately portray the actual level of creditworthiness. So, while it’s advised to have a minimum credit score of 670 and at least 12 months in operation, you can still apply if you have a strong business model and don’t meet this criteria.
You must be a United States citizen with no outstanding credit obligations, tax liens, judgments or bankruptcies within the past 24 months to qualify for financing with Camino Financial.
Camino Financial doesn’t offer loans in Hawaii, New Jersey, Puerto Rico, Michigan, Nevada or the Caribbean Islands, and doesn’t work with the following types of industries:
- Transportation
- Warehousing
- Real estate
- Financial investing or processing
- Cannabis
- Adult entertainment
- Car dealerships
Required documents
Camino Financial suggests having the following business documents on hand when applying for a small business loan to ensure the process goes as smoothly as possible:
- Several months of personal and business bank statements
- One to two years of personal and business tax returns
- Business registration
- Articles of incorporation, bylaws or operating agreements
- Business licenses and permits
- Employer Identification Number (EIN)
- Profit and loss statements
- Balance sheets
- Accounts payable and receivable
- Business plan
- Financial projections
- Details on other debts, if applicable
Alternatives to Camino Financial
| Camino Financial | Accion Opportunity Fund | Fundbox | |
|---|---|---|---|
| Minimum credit score | 670 |
| 600 |
| Loan products offered | Term loan |
| Business line of credit |
| Time to funding | 7 to 12 days | Prequalification takes 15 minutes; time to funding not specified | Next business day |
| Starting interest rate | 32.00% | 8.49% | 4.66% |
| Maximum loan size | $50,000 | $250,000 | $150,000 |
| Minimum annual revenue | $30,000 | $50,000 | $100,000 |
Camino Financial vs. Accion Opportunity Fund
Accion Opportunity Fund (AOF) is a nonprofit lender that, similar to Camino Financial, focuses on providing affordable funding to diverse business owners with low credit or limited revenue. If you need access to more funds, AOF could be a better fit since it offers up to $200,000 more in funding than Camino Financial.
As far as business loan interest rates, AOF advertises a starting rate of 8.49%, which is significantly lower than Camino’s lowest rate of 32.00%. However, making a direct comparison can be hard since AOF doesn’t disclose its maximum interest rates. It could be worth applying to both lenders and seeing who offers the better rate. The lower your rate, the more you can save in the long run.
Both lenders offer extensive educational resources and support for minority entrepreneurs and women-owned businesses, making either lender a valuable resource for starting and growing your small business.
Camino Financial vs. Fundbox
Fundbox is an online lender offering business lines of credit of up to $150,000, with either a 3– or 6-month repayment term. If you envision needing access to capital on an ongoing or seasonal basis, Fundbox could be a better choice. You can withdraw up to your limit as often as needed, only paying interest on the withdrawn amounts.
Fundbox also provides quick business financing, with funds hitting your bank account as soon as the next business day. While Fundbox’s minimum credit score requirement is lower than Camino Financial, you need to generate at least $100,000 in annual revenue to qualify.