In the SMB market, there are few ways to "measure" business success and owner "financial & strategic IQ".... beyond GENERAL metrics like revenue growth, profitability, job growth, and market share.
YOCFO developed a trademarked FIGSCORE™ (Financial Intelligence Growth Score), a hybrid quantitative and qualitative metric that deeply evaluates and scores the financial health of a company, current or potential future risk factors, and the strategic and financial aptitude of key resources within the organization. The FIGSCORE, initially, will help YOCFO monitor the progress internally, over time, as well as highlight potential areas of improvement early in an engagement to improve YOCFO service model efficiency.
In addition to the internal uses of the FIGSCORE, it also has the potential to be a critical tool for lenders in evaluating risk pre-settlement and as an ongoing post-closing assessment tool on company health and viability.
Lenders for small businesses open themselves up to significant risk when only relying on financial data to determine the risk profile of small businesses.
The FIGSCORE offers these lenders unique insight into the qualitative nature of the small businesses, including competency of the bookkeeping, accuracy and clarity of internal financial statements, other liabilities that are not properly recorded on a balance sheet, capacity of the owner to contribute funds in a cash crisis, and more.
The first version of the FIGSCORE was successfully soft launched as a borrowing covenant with the Philadelphia Industrial Development Corporation (PIDC), a local community development fund institution (CDFI), as well as presented at a national CDFI conference.
The second phase of development is to further standardize the scoring process in preparation for the third phase, which will be SAAS platform.
The eventual goal is to enter the lender spotlight by becoming a standard scoring metric across CDFIs nationally and being introduced to traditional banks and lenders as an add on to the FICO or Dunn & Bradstreet score for small businesses.