Non-Latino credit scores are at historical highs with an average credit score of 657, indicating that the average balance sheet of non-LOBs is stronger, potentially attributed to more access to COVID-related stimulus funds.
In comparison, Latino applicants’ credit score remained stagnant in Q2 ’21 with an average credit score of 641.
In Q2 ’21, the percentage of applications from new LOBs (< than a year in business) grew to 26%, indicating Latino entrepreneurs are optimistic about the market and willing to invest in their entrepreneurial endeavors.
In order to keep up with digital trends, 42% of LOBs surveyed are planning on investing in social networks such as Facebook marketplace or the Instagram store to attract more customers.
Likewise, 59% of LOBs surveyed are adding new products or services that meet the needs of their new customers.
Within the last 6 months, 18% of LOBs surveyed reported that over 50% of their revenue is generated online vs. offline, indicating that LOBs adapted to their new consumer needs during COVID pivoting towards digitalizing their businesses.
18% of LOBs surveyed reported that over 50% of their revenue is generated online vs. offline
In terms of payment methods, our survey suggests that 33% of LOBs are adding more digital methods to accommodate their new consumer preferences.
This quaterly issue follows the impact of COVID-19 on Latino-Owned Businesses (“LOBs”) after the resurgence of the virus and reclosure of the economy between June and August 2020.