Lenders, Banks, Credit Unions and other credit issuing Financial Institutions providing commercial loans to small and medium size businesses need to be able to quickly evaluate the financial performance of potential and current lending customers to minimize their exposure to bad loans and effectively price the risk carried by each individual applicant or client.
- Reduce the risk of default thereby increasing the profitability of business loan portfolios by adequately assessing and pricing risk based on a client’s financial situation and business performance
- Use state-of-the-art benchmarks and analysis tools that other lenders may not use to evaluate applicants and regularly monitor the performance of credit portfolio companies beyond traditional GAAP accounting statements to determine whether the applicant/client can meet their loan obligations
- Help clients understand their company’s financial performance and generate “eye-openers”
- Discuss business performance with clients by presenting them with performance benchmarks from the client’s specific industry that are difficult to dispute, focusing on critical performance indicators in addition to traditional accounting measures
- Present recommendations and sound financial improvement strategies to clients at an early stage when financial indicators just begin to decline.
- Track a client’s business performance over time and compare it to other players in the industry without wasting resources in the deepest detail, focusing on major indicators that have been proven to matter most
- Have access to reliable benchmarks from privately held companies of over 2,500 industry groups that are not available anywhere else and that will demonstrate the current performance of their client’s business
- Present results in a very professional manner without additional effort
Products and Features
IndustriusCFO’s products are ideal for evaluating the financial performance of a business and recommending options for improvement.
Select a particular product to view more detailed information.
- IndustriusCFO Industry Metrics Reports
- Industry financial intelligence covering over 2,500 industry groups and 900,000 privately held businesses
- Industry size breakdown into small, medium-sized and large segments specific to each industry, rather than using fixed size thresholds
- 17 commonly used key financial ratios for each industry
- IndustriusCFO Business Analyzer modules
- Easy to understand insights about the financial performance of a business. Analysis of:
- Revenues, gross margin and operating expenses
- Earnings power and profitability
- Cash liquidity position and working capital
- Ability to grow
- Fair market value
- Ability to meet loan payment obligations
- Comprehensive industry financial benchmarks comparable to the business under analysis
- Practical suggestions for improving financial performance
IndustriusCFO also provides different training options for managers and employees of financial institutions with steep learning curves to enable them to use our tools quickly and efficiently in their business.
Michael Slater, President
Business Loan Services, Inc
I am writing to let you know of the positive experiences I have had using [IndustriusCFO] Business Analyzer. I feel, the use of [IndustriusCFO] has added a new dimension of credibility and expertise to my business. The businesses I work with are in need of money. They are looking to refinance existing debt, expand their facilities, buy-out partners, acquire competitors, or purchase additional equipment. While the clients want money, most, if not all, need to do some work on their business in order to be able to be a creditworthy borrower for a lending institution. [IndustriusCFO] helps me demonstrate to the product/service oriented business owner the critical measures he/she must monitor in order to have a good understanding of the financial aspects of their business. It also helps the Lender to understand the critical measures they must monitor in order to have a good client for the Bank.
I recently was working with an underground utility company. We started working with this company in 2006. The company needed to move from their current Lender because of capacity issues. The company had several areas where improvement was needed before Business Loan Services would be able to place their debt. [IndustriusCFO] was utilized to help in this process. The issues were profitability, liquidity, and efficiency such as the age of receivables and inventory or their assets to sales ratio.
After reviewing the data, the Owners agreed that they had too much equipment. Because of the amount of equipment and the accompanying debt associated it, the company needed to make sure that there was sufficient cash flow to make the monthly payments. When profitable jobs were not available, the company took jobs with lower margins to secure sufficient cash flow. After our review, several pieces of equipment totaling almost $150,000 were sold. This generated immediate cash that the company could now use to finance operations and it reduced monthly recurring payments by at least $5,000. The company was then able to concentrate on jobs with higher margins rather than taking any job that provided cash. This in turn improved profitability significantly.
Once the initial improvements had been completed, I was able to demonstrate to the Lender, through the use of [IndustriusCFO], how a restructured loan agreement would take the company from negative liquidity (net balance position) to a positive net balance position. Since the lender had seen the improved profitability, the reduction in less productive assets and that a positive net balance position could be achieved, he was willing to provide the loan.The total loan package amounted to $2.4 million.
…I am still working with the client now to eliminate excess inventory and to improve the collection of their receivables as [IndustriusCFO] pointed both of these topics as being way below the industry average. This company for example collects receivables on average 17 days slower than their peers. [IndustriusCFO] shows that if the company can reach the median performance in their industry, it will generate about $400,000 of additional cash. With that, the Owner wants to reduce his borrowings on their line of credit substantially to reduce interest expenses and reduce the stress associated with tight cash flow. Thanks in a large part to the [IndustriusCFO] tools, step-by-step all of these improvements have been possible.
“[IndustriusCFO] enables us to monitor the financial performance of our clients and react before things get out of hand.”
Robert Calson (Loan Officer)
“I have 14 years experience dealing with asset-based loans, substandard credits and higher risk government guaranteed loans. Because the [IndustriusCFO] product provides the greatest accuracy in industry benchmarking information, I can make more credible recommendations to the lenders who finance the projects. Today, there is nothing better than [IndustriusCFO] to help lenders understand what measures have the most impact on the short and long-term liquidity and profitability of the businesses they finance!”
Mike Slater (President, Business Loan Services Inc, Clive, IA)
“We are a smaller bank and were looking for credit risk tools that fit to us. With [IndustriusCFO] we found a tool that gives us an advantage compared to other banks in our region.”
Randy Sturm (Commercial Lending)
“First Research evaluated a number of companies to provide financial information for our reports. [IndustriusCFO’s] leading industry database made our decision to partner with [IndustriusCFO] an easy one. [IndustriusCFO] is fast becoming an industry leader in the financial benchmarking and credit scoring businesses helping banks, consultants, and other organizations improve their loan portfolios and businesses. We look forward to our continued partnership with [IndustriusCFO].”
Tyler Rullman (Vice President of Development, First Research, Raleigh, NC)