Storied Credit: 4 Factors Besides Credit Score That Matter to Your Landscaping Business
In my 25 years of helping businesses arrange growth financing, I’ve helped many clients with storied credit. As the Commercial Team Leader at Mower Finance (powered by Terrace Finance), I have had customers for whom I have secured financing in the past suddenly come to me with a drop of 150 points or more in their credit score. It becomes more difficult to help them close the next financing deal. This leaves me to question: did they change their repayment habits? No. Did they overspend on non-essentials? No. It is often the case that the decrease in credit score is completely out of their control, such as when a health issue results in mounting medical debt.
Recently, I spoke to a friend who had gone through some challenging life events that reminded me how precarious our credit situations can be. Newly divorced with legal issues pending, and with an aging parent needing care, their credit took a hit. This left them in a situation where it was difficult to even secure an apartment. Instead of a typical one-month security deposit, they had to provide a three-month deposit. Events like this can happen to any of us and open my eyes to how frustrating it must be in this situation, especially for someone who has always been responsible with their money. Life events can leave you in a downward spiraling position where you are perceived as a credit risk despite the years of positive credit history. Despite the best intentions to pay bills on time and stay within financial means, a credit score can label an individual as a high risk.
Our Storied Credit Approach
While many traditional lenders view credit scores as a primary driver for a customer’s ability to repay, at Mower Finance we understand that a score does not always capture the entire credit history of an applicant. We take an alternative approach to look for other attributes that really matter for businesses:
- Cash flow & Revenue
Does your business show consistent cash flow over time? - Credit history
Does your borrowing history show consistent debt repayment? - Life circumstances
Have you suffered an injury that impacted your credit? Loss of employment? Divorce? Student debt? - Assets & equipment
What tangible value strengths does your business have? Equipment or real estate that you own?
Your Business is Unique. Your Financing Should Be Too.
By taking the time to evaluate your full story, Mower Finance can facilitate alternative credit options for businesses in need of capital for equipment, supplies, or expansion, even when others might decline. Our view is that every business is unique, and a one-size-fits-all approach isn’t always the best evaluation of creditworthiness. Spending the extra time understanding your business, and not just your credit score, is a story worth investing in.
Ready to tell us your story? The Mower Finance Commercial Team is here to listen and provide options. Email me at johnp@terracefinance.com.
