Camino Financial business loan specialists. Concept: interest rates.
Timothy Ronaldson
By: timothy-ronaldson
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How Does Camino Financial Calculate Your Loan Interest Rates?

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When business owners consider applying for a business loan, one of the main factors they consider is the interest rates of the loan. The interest rate will determine how much the monthly payment on a business loan will be.

What Are Camino Financial Loan Interest Rates?

Currently, Camino Financial offers a range of monthly interest rates based on the type of loan and the borrower themselves. The current rates are:

  • For microloans (with a loan size range of $5,000 to $75,000) the annual interest rate ranges between 19.0% and 34.0% (equivalent to 1.58%-2.83% monthly)
  • For small business loans (with a loan size range of $10,000 to $400,000) the annual interest rate ranges between 12.00% and 24.75% (equivalent to 1%-2.6% monthly)

Camino Financial Interest Rates Compared to Other Financing Options

Camino Financial interest rates are quite similar to those in credit cards, but as opposed to this type of financing, Camino doesn’t charge any other penalties. We also provide some benefits you won’t find in a credit card: for example, you receive continued support and assistance, and you have access to resources and exclusive discounts. But above all, by taking out one of Camino Financial loans, you’ll be building your business credit, something you won’t be able to do with a credit card. When you establish a solid credit history, you can access more capital and business opportunities. In other words, Camino Financial business loans are as convenient and easy to access as a credit card, but with added value and benefits.

Some potential borrowers may think that our interest rates are high when compared to those offered in traditional banks. But again, Camino Financial offers unique benefits a bank won’t provide you: Camino doesn’t require collateral to secure your loan, doesn’t require a Social Security Number either (they accept applicants with only an ITIN), and guarantees fast funding within 2-10 days with minimal paperwork (while the average funding time in a bank is 3 months). For most lenders, the long list of benefits provided by Camino and the quality of their service clearly compensates for the slightly higher prices.

How Does Camino Financial Calculate Your Loan Interest Rate?

Camino Financial interest rates are calculated on an individual basis and therefore vary per borrower. These are the factors considered when calculating a borrower’s interest rate:

  • Global cash flows: This includes your personal (household) and business cash flows
  • Industry comparison: Camino takes into account how your industry is performing in comparison to your industry benchmarks
  • Credit history: This shows Camino you are a responsible and trustworthy borrower. However, we also accept applicants with no credit history, since we understand that many of entrepreneurs in the Latino community haven’t remained in the U.S. long enough to stablish credit.

“We are proud of attending the underbanked community of Latino small business owners by not requiring a credit history. We know this may be a challenge for many of them” – Jesse Machorro, Credit Underwriting Manager at Camino Financial

How Can Camino Financial Lower your Interest Rates?

Camino Financial strives for making their financial products affordable, and that’s why we offer this unique opportunity to all our members: after 9 months of timely payments, a borrower can apply for a second loan for a larger amount and with lower interest rate.

After 9 months since you first took out your loan, you have a higher probability of a decrease in interest rate since you have proven out credit performance with Camino Financial. This shows good credit practice and capability to service your business debt obligations in the future.

Also, Camino Financial loan specialists will be happy to help you and work with you to find actionable ways to lower your interest rates.

How Can You Calculate What You’ll Pay in Interests?

Simply use the Camino Financial business loan calculator, a unique tool that can help you calculate your interest cost, the total cost of your loan, your monthly payments and more.

To use the business loan calculator, you should navigate to the webpage and enter in the three fields it prompts you to enter, which are:

  • The total loan amount
  • The payment term (between 20 and 60 months)
  • The monthly interest rate (between 1% and 2.5%)

Once you enter those terms, you can hit the orange “Calculate” button, and the calculator will immediately display the following information:

  • The total interest you will pay on the loan
  • The closing fee, which is the only fee on Camino Financial loans. There are no other fees, including no funding fee and no documentation fee.
  • The total cost of the loan, which is the total interest plus the closing fee
  • The monthly payment

The most important number you should pay attention to when analyzing your loan details is the monthly payment. You need to make sure that, above anything else, you are comfortable with this number and are able to make the monthly payments on time every month. If it does work for you, then this is a loan that could do wonders for your business.

Camino Financial Loans: Interest Rates that are FAIR

While interest rates are an important aspect of any business loan, there are many other factors you have to keep in mind when applying for a loan. At Camino Financial, our interest rates are fair because we offer many advantages that other traditional financial institutions do not, including:

  • We do the math to make sure the Return on Investment you will get from your loan will far surpass the cost of the loan itself.
  • There are no surprises ever – your monthly payment is fixed and will never change.
  • We don’t charge any other fees, and you can pay your loan in full at any time without any prepayment penalties.
  • As we saw above, after only 9 months of on-time payments, you can qualify to have your interest rate reduced.
  • We match you with the best financial solution that is right for your unique needs and ensure you are comfortable with the monthly payments.
  • You won’t have to worry about risking your personal property or assets, because we don’t require you to provide collateral to close on the loan.
  • You can turn to us if your application was rejected by a traditional bank, because we have fewer requirements than most banks. We are true to our motto: No Business Left Behind.
  • You can use your ITIN if you don’t qualify for a Social Security number.
  • You don’t need a credit history to qualify for a business loan with us.

Above all else, Camino Financial customer service is personalized to you. We are proud of stablishing long-term relationships with our members. Our loan experts are bilingual, and we offer resources and educational materials in Spanish to improve your financial performance and grow your business. We understand the unique challenges faced by small business owners, and we thrive to work with you to take your business to the next level.

All of these are reasons that justify why the interest rates at Camino Financial are slightly higher than at some traditional financial institutions. In fact, because of all that we provide with our business loans, we can guarantee our interest rates can’t be considered high, they are FAIR. In the end, the extra cost is worth all you get with our loans that you wouldn’t get at a traditional bank.

It is important that you understand when a business loan interest rate is fair.

Applying for a business loan with Camino Financial is an easy and quick process that can be done completely online. In a matter of just a few minutes, you can see what loan and rate you qualify for, and get your loan funded in no time. What are you waiting for to start growing your business?

 

 

 

 

 

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