Character Counts When Bank Denies Due to Low Credit Score

Construction - Concrete Installation and Grading

Southern California

Established in the early 1990s, the owner of this concrete installation company was ready to retire and have the next generation take over. The new president had growth plans that included starting a grading operation, but the bank declined their loan request, so growth had stalled.

Bank Denies Loan Application based on Credit Score

In operation since the early 1990s, this concrete contractor had grown steadily through the years based on the quality of their work and attention to detail. Early on they faced some financial challenges that were not altogether unusual, but these challenges did negatively impact their credit history. As the next generation took over, the new president had plans to pursue new business opportunities, including a new grading division. Adding this capability would reduce their need for subcontracting and improve profitability. They approached the local bank to obtain a loan to finance the equipment needed to support this endeavor. Because the bank relied heavily on credit history for the decision, the company’s loan application was denied. The contractor turned to Commercial Credit Group (CCG) to discuss other options.

CCG Approves Based on Character and business planning

To understand the situation, CCG’s representative asked the president of the company to gather the documentation and financial statements typically required in the application process. He also requested a brief narrative about the company’s situation, the nature of the company, and their goals for the future. After reviewing this information, the CCG representative was impressed and made an in-person visit to see the operation and meet their people.

In addition to taking great pride in the quality of work performed, the company operates a bit differently. One example is the “valet service” provided for jobsite workers. When they arrive at work in the morning, the trucks are already loaded with the supplies needed for that day’s projects. The warehouse crew has already picked and loaded materials, so the jobsite employees simply need to drive the truck and supplies to the job location to begin work. The philosophy is that jobsite workers are already working long hours in challenging outdoor environments and don’t need to spend time and effort loading trucks. To help them stay fresh, healthy, and productive, other members of the team take care of the offsite job requirements.

The bank didn’t take time to understand the business philosophy and how the company had plans to grow in size, scope and revenue. CCG looked beyond the credit score and took the time to understand the business and the growth potential. Realizing that the addition of the grading division would enhance competitiveness and profitability, CCG financed the initial equipment purchase and the company was able to open the new division. CCG has financed over $1.5 million in additional equipment purchases and working capital and the company continues grow and hire new people.