Access To Capital Will Drive Rapid Digital Transformation For Latino-Owned Businesses

LOS ANGELES, July 22, 2021 /PRNewswire/ -- Camino Financial's Q'2 2021 Latino Small Business Credit Survey points towards an emerging credit demand among smaller Latino-Owned Businesses (LOBs) generating less than $100k in revenue with the intention to invest in digitalization. Key findings indicate, 33% of LOBs surveyed show a clear intention of adding more digital capabilities to accommodate new consumer preferences.

Beyond the challenges of accessing credit, our report indicates that smaller LOBs' approval rates remain low, indicating lenders extended credit to larger businesses with lower risks. For LOBs to fully adapt to the digital world, they need to access credit to invest in digital innovation.

Latino market insights include:

• Latino entrepreneurs are beginning to demand credit again - 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
• LOBs are investing towards their digital future - 42% of LOBs surveyed are planning on investing in social networks such as Facebook marketplace or the Instagram store to attract more customers
• LOBs inch towards digital adoption - 18% of LOBs surveyed reported that over 50% of their revenue is generated online

The SBA seemed to recognize the necessity of building business resilience,  announcing a Community Navigator Program, which will help small businesses operating in underserved communities adopt new digital technologies for the purposes of regrowth. Through initiatives like this, Community Development Financial Institutions (CDFIs) are able to provide small businesses the trusted guidance and funding to upskill their workforce and upgrade their abilities to deliver new digital business models in the post-pandemic era.

Download and subscribe to the Survey here.

About Camino Financial

Camino Financial is the first AI-powered Community Development Financial Institution ("neo-CDFI") expanding access to credit for underserved Latinx entrepreneurs in the U.S. The Company is uniquely positioned to offer affordable loans as it combines its proprietary AI technology with access to CDFI designated low-cost capital and resources.  Camino Financial has also produced the largest bilingual content hub to empower Latinx entrepreneurs to thrive and graduate into lower cost, longer term credit products. 

SOURCE Camino Financial, Inc.

Related Links

www.caminofinancial.com

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