Congratulations! You have prequalified for a business loan from Camino Financial. That means you can receive in a matter of days the funds you need for your business directly deposited in your bank account. So, what comes next to make this happen?
We have prepared this post to guide through the whole process, so you always know where you’re standing and what comes next.
If you still haven’t applied for a business loan with us, this information will help you make a decision. Check for yourself and see what makes our loan process is fast, simple, and transparent, and what we do to live up to our motto “No Business Left Behind”.
How Come You Are Prequalified for a Business Loan?
Recently you took the first step to grow your business by submitting your loan application online or by calling us to talk to a loan specialist. We are sure you found this step quick and easy. The best part is that you could know instantly if you were prequalified, without visiting a branch or sending any documentation.
If you still haven’t applied online, what are you waiting for? It won’t affect your credit score. You will be asked a set of simple questions about your business to make sure you have a better chance at prequalifying and that we can find the best financial solution tailored to your needs.
Then, Camino Financial will review your credit report and the information you provide (like your annual income, the use you intend for the funds, and your monthly business debt). To have a better idea of the information you will be asked, please learn here about our requirements. You will be surprised when you see we have much fewer requirements than most lenders.
After reviewing this information, the prequalification terms will be sent to you via email and SMS. This usually happens automatically, other times it can take up to 24 hours. It’s that quick and that easy!
So, What Comes Next?
1. Call from a loan specialist
After you receive your prequalification terms, a business loan specialist assigned to you will give you a phone call to review the terms and get to know the use of proceeds in detail. Once the loan specialist has enough information to proceed, he or she will review the loan terms with you and answer any questions you may have.
These are some of the most common questions asked by our applicants, along with the answer we provide:
- How long does this take? The time you need to be involved in the application process is minimum. The communication we establish by telephone, text message or email takes just a few minutes in total.
- How soon can I get the funds? The time from application to funding is 2 to 4 days for our microloans (up to $75,000) and from 3 to 7 days for our business loans (up to $400,000)
- How will my payments be made? Monthly payments are withdrawn automatically from your bank account on your given payment date. Also, you can access your payment history on your Camino Financial portal anytime you want.
- Can I pay the loan sooner? Absolutely. There are no pre-payment fines if you decide to pay off your loan at any time.
2. Electronic verification of your bank account
What is this? Camino Financial needs to verify your business bank transactions for the past 6 months. We verify your bank transactions through a third-party application called PLAID, and to do so you simply need to login to your bank account through this electronic application. In most cases, your bank will send you a verification code just to confirm it is you completing this transaction. Talk about security!
You may feel skeptical about this step: is it secure to let us access your bank statements? Yes, absolutely. We don’t access or store your credentials (username and password) and we can’t modify any information in your transactions. It is safe, simple and quick.
By using PLAID we can verify your identity, the cash flows of your business, and your business income. But the best part is that this process allows us to make a fast and accurate decision on your loan, matching you with the best funding option.
PLAID is an alternative to old methods such as faxing your bank statement or calling your bank to get the information you need. It is very convenient to use.
3. Review by the credit department
The credit department of Camino Financial will review your bank transactions and will make a final decision about your loan. It takes 2 business days at maximum. If at this point we need any more information from you, all communication will take place by telephone, text message or email.
4. Confirmation call and final decision
Before our final decision is given, a representative from the credit department will call you for a quick 5-10 minute phone call to talk about your business. What will you be asked? Questions will vary on a case-to-case basis but are mostly to confirm your business needs. We can also ask you about any transactions that we found in your bank statements, or to confirm something in the credit report.
A final decision is given within hours after this phone call.
5. Disclosure of the approved terms
Once the loan is preapproved, your assigned business loan specialist will call you to disclose the preapproved terms.
If you agree with the terms, your business loan specialist will need to collect minor closing documents. You can easily send us these documents by SMS or email. These closing documents vary but are normally a Government Issued Identification and a Business License. If your business is not registered, then your business loan specialist can provide instructions on how to proceed.
6. Loan contract and funds release
Once you submit your closing documents and they pass a final review, the loan contract is generated and sent to you via email so you can sign it electronically. Make sure you have the full account number and routing number for the bank account you verified earlier in the process. This is the account your funds will be wired to. Your business loan specialist could help you complete this contract should you have any questions or encounter any technical error.
Once you sign your loan contract, you receive your funds within just 2 business days! You made it possible! Now it’s time to invest those funds in your business growth.
What’s the Difference Between Being Prequalifies and Being Preapproved?
What does it mean to be prequalified?
Being pre-qualified by Camino Financial means we decided you will likely be approved for a business loan, based on the information you provided on your application form.
We took that unverified information and determined how much you will likely be approved for. Bear in mind though that there are no guarantees you will actually be approved for the same amount. On the other hand, the prequalification doesn’t impact your credit score and it’s free of charges.
What does it mean to be preapproved?
Being preapproved means you’ve actually been approved to receive a specific loan amount. This step takes place in number 4 form the list above. After reviewing your bank statements and give you a call, our credit department is ready to make a decision and preapprove you. Then, your assigned business loan specialist will call you to disclose the preapproved terms.
Final approval happens once you sign your loan contract. Then you are just 2 days away to receive your funds!!
What Can Go Wrong During the Loan Process?
If anything goes wrong during the process, we will do everything in our hands to remediate it.
Some applicants can get denied at any point in the process if we find inadequate information. We want to assure you we’ll do the best we can to prevent this from happening by communicating to you promptly any discrepancy we may find.
Also, you have the freedom to drop out of the process whenever you would like. Even if your loan has been approved and we are preparing the loan contract, you can back out from taking the loan if for any reason you decide it’s not for you. However, we recommend you to take this decision into close consideration as our current loan offer may not always be there in the future. Our loan offers are given based on the current credit and cash flows of your business. We advise you to consult with your business loan specialist before dropping out.
Customer satisfaction is our number one priority. Our mission is to provide you a pleasant loan experience even if you decide not to work with us.
We Are Proud of Working with You!
At Camino Financial we are proud of establishing long-term relationships with our members. If for some reason you don’t get a loan the first time you contact us, our doors will remain open for you. And if you do get a loan, we’ll walk with you on your way to success.
We don’t just provide you with funds and forget about you: at Camino, we’ll provide you with all the resources and assistance you need to improve your financial performance and grow your business sustainably. But you don’t have to take or word for it! Before you go, we invite you to read about other small business owners like you who are growing and succeeding with the help of Camino Financial.