Camden, NJ–On June 18, 2026, entrepreneurs and business owners gathered at LAEDA for Inside the Lender’s Mind, an educational workshop presented by Pursuit, a local community development financial institution (CDFI). The session featured presenters Irene Dominguez, Paola Garcia-Villari, and Tom Dowling, who shared valuable insights into what lenders look for when evaluating business loan readiness.
The workshop focused on three critical areas that can significantly impact a business’s ability to secure financing and achieve long-term success: personal credit, cash flow management, and financial security.
Understanding the Importance of Personal Credit
The presenters emphasized that personal credit plays a major role in business borrowing, particularly for small businesses and startups. Attendees learned the difference between a credit report and a credit score, as well as the factors that contribute to each.
Business owners were encouraged to regularly review their credit reports to ensure accuracy and identify potential issues before applying for financing. Checking credit reports periodically can help detect identity theft, address errors, and avoid negative impacts such as charge-offs. Participants were reminded that free credit reports are available from all three credit bureaus on a weekly basis through AnnualCreditReport.com.
Why Cash Flow Matters
Cash flow was highlighted as one of the most important indicators of a business’s financial health and long-term success, as only about 33% of businesses survive beyond 10 years.
The session reviewed the three primary financial statements every business owner should keep and understand:
- Income Statement – Shows profitability over a period of time.
- Balance Sheet – Often the most important document for lenders, providing a snapshot of the company’s assets, liabilities, and equity.
- Cash Flow Statement – Critical for business owners because it tracks how money moves in and out of the business.
Attendees also learned about “debt service coverage ratio (DSCR)”, a key lending metric that demonstrates a business’ ability to cover its loan payments. Lenders may also evaluate global cash flow to debt service coverage, which factors in the owner’s personal finances to determine whether their current lifestyle and obligations can support additional debt.
Building a Financially Sound Business
The final instructional portion of the workshop focused on strategies to strengthen a company’s financial position.
To increase cash inflow, business owners can:
- Adjust pricing when appropriate
- Reduce operating costs
- Diversify revenue streams
- Explore new market opportunities
To decrease cash outflow, businesses can:
- Negotiate more favorable payment terms with vendors
- Leverage technology to improve efficiency
- Identify and eliminate unnecessary expenses
One of the most important takeaways was to seek financing before it becomes an urgent need. Businesses are often in a stronger position to secure funding when they can demonstrate healthy cash flow and financial stability, rather than waiting until they are facing financial challenges.
Pursuit Lending Products
The presenters ended by discussing several financing options available through Pursuit, including:
- FlexLoan Greater Philadelphia – Provides up to $100,000 for startups and businesses that have been operating for less than two years.
- Pursuit SmartLoan™ – Offers up to $100,000 for businesses with more than two years of operating history.
These products are designed to help entrepreneurs access the capital they need at various stages of business growth.
For more information about Pursuit’s lending products and business support services, visit Pursuit’s website.