Are Small Business Loans a Solution for the Latino Community?

Have you put your business plans on hold because you don’t think you’d qualify for a small business loan? small business lenderYou’ve even heard that Latino and other minority communities aren’t considered loan worthy among traditional bank lenders. In fact, the word on the street is that minorities generally pay higher interest rates on smaller loans. Without access to working capital you already know there won’t be sustainable cash flow to operate your business.

Your formidable concerns are daunting and cast a shadow over your dreams. You may feel left behind before you even begin. But read ahead. There may be solutions available.

According to Forbes Magazine, minority-owned businesses grew by 79% from 2007 to 2017. Within that 10-year period, these businesses grew 10 times faster as compared to other U.S. small businesses.

It is possible that a small business loan can catapult a small business’s growth to a much higher level.

A Real-Life Story about a Latino Woman Who Used Small Business Loans to Succeed

Leticia needed income to support her family but she didn’t want to miss a single moment of her children’s lives. So, she rented space within her community and sold flowers while gradually building up her tax preparation service at the same time. That was a smart move because she could prepare taxes for the same people who came in to buy flowers.

Because providing tax services to clients is seasonal, Leticia realized she could offer additional tax-related services to her clients. She would need to hire additional staff and provide on-hands training. A small business loan enabled her to increase operating income by 49% and grow to over 2,000 clients within 15 years.

Leticia Realized These Immediate Advantages When Securing a Small Business Loan

These same advantages are available to many minority-owned small businesses when capital is needed.

  1. Instant Working Capital: She applied online and prequalified for a loan then set up a call with a loan specialist. Together they considered the size of her loan, the interest rate, and payments that fit within her budget. With cash in her checking account via direct deposit, Leticia was able to meet the growing financial demands of her business.
  2. No Collateral was Required: Small business owners don’t want to take unnecessary risks. Offering collateral such as a vehicle or equipment to secure a loan doesn’t make sense when your main focus starting out is to cover day-to-day operations.
  3. Credit Score: Submitting an application did not affect Leticia’s credit score. That’s because online lenders request credit information once so a credit score isn’t impacted. Like Leticia, once she establish a long-term relationship with a lender, she started building credit.
  4. Business Growth: It didn’t happen overnight but Leticia graduated to larger loans as she took on more clients and employees. She expanded her business plan to provide a more diverse line of business products to include real estate, immigration, and other legal services.

Online lenders like Camino Financial offer a quick and easy process when applying for a small business loan.

Small business dreams can be turned into reality. The right online lender doesn’t see you as a risk but an opportunity.

About Erick Copello

Erick Copello is a writer for Camino Financial.