Camino Financial Loan Rescheduling Program

What is loan rescheduling?

Loan rescheduling refers to adding extra time to repay the outstanding balance of a loan. By extending the repayment period, the borrower will effectively make lower fixed monthly payments on the rescheduled loan until the revised maturity date. After the loan is formally rescheduled, the borrower returns to the “Current” payment status on the rescheduled loan, and the updated status is reported to the credit bureau. The rescheduled balance includes the outstanding principal and accrued interest owed to Camino Financial.

How to reschedule your outstanding loan?

If Camino Financial has deemed a delinquent borrower eligible for loan rescheduling, the eligible borrower must go through the following 3-step process:

• Call the Collections team at (213) 267-6405 to open a loan rescheduling case that is reviewed by the Servicing team. The case review requires proof of hardship from the borrower and access to the borrower's bank transaction data via a Plaid connection
• Upon case approval, the borrower is required to make a good faith payment(s) equivalent to 50% of the contractual monthly loan installment
• Borrower reviews and electronically signs the rescheduled loan agreement

After the agreement is signed, the delinquent loan account will be closed out as a paid-off loan, and a new loan account will open under the current status. 

Benefits

• It helps the borrower avoid defaulting on its loan if the business no longer has the capacity to make the full loan installments
• Avoid severely deteriorating the borrower's credit score for every 30-day period in which the loan account is marked as "Past Due"
• Remain in "good standing" with Camino Financial in order to access more capital once the business has recovered from its hardship 
• The borrower frees up cash flow as the rescheduled loan payments are typically between 30% to 50% lower than the original payments
• The borrower's account returns to its Current status without paying all the past due amounts, including accrued interest and fees
• There are no hidden fees associated with rescheduling, and all accrued fees associated with the string of late payments are waived!

Considerations

• Since the repayment period is extended, the borrower will pay more interest if they hold the loan until its revised maturity date
• If the borrower fails to make the promised good faith 50% payment, they will no longer be eligible to participate in the loan restructuring program.
• If the next scheduled payments are not made on time, the borrower will lose the benefit of participating in the loan restructuring program
• The new loan account will appear as a "modified loan," which can result in an initial drop in the borrower's credit score, but it has a far less negative impact than a string of late payments or loan default.