![]() ![]() "The commission is 100% paid by our lending partners, and in most cases, our services come at no additional cost to the borrower," Salas said. Rather it pre-qualifies borrowers through its website then connects them with one of its 14 lending partners and takes a commission of 2.5% of the resulting loan's principal. Here's how it works: Camino doesn't finance the loans itself. Through Camino Financial, Salas and his brother not only want to help Latino entrepreneurs qualify for more affordable loans, but offer them advice and ongoing credit monitoring to help sustain their business. This has forced many Latino business owners to turn to predatory lenders, which can charge interest rates of as high as 80%, he said. ![]() aren't incentivized to lend to Hispanic business owners." "It was a combination of lack of resources, 'know how' and affordable capital to grow the business sustainably." Sean and Kenny in Mexico as teens.Ĭommunity banks used to lead the way in lending to small business, but many of them closed since the Great Recession, said Salas. ![]() "Capital is not what closed my mother's business," Salas said. And less than 1% had received venture capital funding, the researchers noted.īut Salas said his mother's circumstances, and that of many Latinos, goes beyond access to financing. Often, a lack of credit history or sufficient collateral to secure a loan keeps Latino businesses from getting the funding they need.Īccording to a recent survey from Stanford University released late last year, only 6% of Latino-owned businesses had used commercial loans. These types of stories are common among Latino entrepreneurs. The company believes that responsible financial inclusion for the underserved is critical to equitable economic growth, job creation and retention, and the health and sustainability of local communities. Ĭommunity Investment Management ("CIM") is a global institutional impact investment firm that provides strategic debt capital to demonstrate and scale responsible innovation in lending to underserved communities in the United States and emerging markets. Camino Financial is headquartered in Los Angeles, California with supporting offices in Mexico City, Mexico and Bogota, Colombia. The company builds proprietary credit assessment and data aggregation AI to identify, price and provide affordable loans tailored to credit-invisible, cash-heavy businesses. I'm personally very excited to watch them grow" continued Haar.Ĭamino Financial is an AI-powered community lending platform that offers affordable credit and wealth building solutions to overlooked entrepreneurs. "Our goal is to scale financial services to this underserved segment of the market and we're very proud to serve as financing partners of Camino Financial. "Community Investment Management is focused on providing strategic debt capital to responsible fintechs," said Jacob Haar, Co-Founder and Managing Partner of CIM. micro-businesses and will create a scalable impact within these underserved segments. CIM's credit facility will be invested in providing innovative debt financing for these qualified U.S. Micro-businesses continue to struggle to gain access to capital, despite accounting for 44% of economic activity in the United States and creating two-thirds of net new jobs. "Through this strategic partnership, we will aim to innovate and scale many wealth building credit products tailored to overlooked entrepreneurs across America." "We are excited to make big strides towards our goal of $1 billion in lifetime loans with this debt investment from CIM," said Sean Salas, Chief Executive Officer of Camino Financial. ![]() We are excited to make big strides towards our goal of $1 billion in lifetime loans with this debt investment from CIM. ![]()
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