We celebrated our 40th Anniversary in 2024! We are incredibly grateful to our loyal customers, dedicated employees, and supportive partners who have been integral to our success throughout this remarkable journey.
Risk Rating Program
Did you know all financial institutions must “risk-rate” their small business loans?
Similar to your personal credit score, a small business needs to know its risk rating. The risk rating can impact whether you are approved for the loan. Or it can affect the interest rate you get.
Would you like to learn more?
T. Gschwender & Associates, Inc. has been risk-rating small businesses for financial institutions for over 40 years. Our proprietary risk rating methodology is developed using the same variables financial institutions use to approve small businesses for loans—the 5 Cs of lending!
Do you want to continue with the conversation?
Financial institutions have used the “5 Cs of Lending” to underwrite loans for decades. It results in a thorough review of small business strengths and weaknesses.
The 5 Cs are:
- Capacity: your cash flow available to repay the loan.
- Capital: an assessment of the company’s profitability, liquidity, and leverage ratios.
- Collateral: a review of any secondary protection in case of loan default.
- Character: a look at your payment history and credit history/scores of the owners.
- Condition: industry outlook, length of time in business.
Do you want to continue with the conversation?
When assigning risk ratings for financial institutions, we have added a 6th C called Credit Administration. This C reviews the loan structure and how well the financial institution is monitoring the loan.
The overall risk rating is not dependent upon any one C but how these Cs interact with each other. Our proprietary risk rating methodology does just that!
Would you like to learn more?
TGA is developing a user interface for our website that will allow small businesses or financial institutions to enter information and automatically obtain a risk rating.
However, if you want to know your risk rating now, we can prepare a report and send it to you.
Just email us using the link below
