Refined lending approach attuned to business lifecycles

The best companies in your loan portfolio are likely the ones at capacity, providing stable and predictable return on investment. It doesn’t matter if these firms are large economic enterprises or small mom-n-pop shops — sales and earnings variances are low and businesses experience planned growth with long term stability.

One only needs to look at the business lifecycle model and place a finger firmly on the place where business is at market equilibrium (see graph 1). Your best businesses are at the place on the model that creditworthiness risk algorithms are designed for — the prediction of future . . .

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