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Credit Worthiness Doesn’t Equal Credit Score

With thirty five years of working in the financial industry in the Puget Sound area Jim Minder is a bedrock of information and wisdom when it comes to business lending.  Jim started with TwinStar CU about four years ago and is the Senior Business Relationship Manager.  A graduate of Pacific Coast Banking School I found Jim to be a surprisingly calm individual with a clever humor about him.  Jim values serving business owners who work hard.

Very approachable, Jim likes to build relationships with people.  Experience has taught Jim not to measure people primarily by their credit score.   Jim is truly capable of delivering peace of mind from start to finish for his clients when it comes to commercial lending.  Saving time for his clients by anticipating all of the underwriter’s requirements for a loan is just one benefit of his experience.  Before submitting a loan request to the underwriter Jim will evaluate his client’s credit worthiness – not their credit scores.  Jim looks at many things when evaluating and processing a commercial loan, two important ones are:

1.       What is the projected cash flow of the business?  A cash flow forecast is required.

2.      What does the individual credit report show?  High credit balances and delinquencies are scrutinized.

a.       High credit balances don’t mean you can’t get further lending if you can make a profitable business case for the loan shown through a cash flow forecast.

b.      Delinquencies are likely to prevent further lending until a history of on time payments can be re-established.

Tip:  Don’t follow the recent trend that shows businesses requesting loans with repayment plans based on income from two or three years ago when the economy was in better shape.

It is really exciting and encouraging for would be and current business owners to know they may be able to expand their current product or service lines with financial assistance from lenders in this economy.  Jim described how a client with a good cash flow forecast may even be able to begin repayment of the loan three months after the loan was granted.

Jim recommends utilizing SBA, S.C.O.R.E., SBDC, Enterprise for Equity and other local free and valuable business planning resources available here in Thurston County.  If you have questions about commercial lending for your business or would like to know more about how Jim Minder and TwinStar Credit Union can help your business succeed please call (360)923-4495 or visit www.twinstarcu.com.

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