A Common-Sense Revolution: How SLS Built a 360° Commercial Credit Scoring Model That Thinks Like a Lender

A Common-Sense Revolution: How SLS Built a 360° Commercial Credit Scoring Model That Thinks Like a Lender

Rethinking Risk, Reclaiming Judgement

At SLS Financial, we’ve long believed that smart lending goes beyond what credit reports and scorecards can show. In a space increasingly dominated by automation and rigid credit boxes, we built something different—something better. Our commercial credit scoring model was designed to take a 360-degree view of every transaction, without sacrificing common sense or human insight.

Why We Built Our Own

Off-the-shelf scoring tools often miss the mark. They focus too narrowly on personal credit. They disqualify sound deals based on isolated data points. They rarely reflect how real-world businesses operate—or how smart lenders actually think.

We needed something more flexible, intuitive, and rooted in how we evaluate risk day to day. So we built it.

Philosophy First: Common Sense + Structure

Our scoring model isn’t just a tool—it’s an extension of our lending philosophy. It brings structure to the process, while still leaving room for human context and discretion. It protects against inconsistency without overcorrecting into rigidity. In short, it enforces discipline without killing good judgment.

The 360° Framework: What We Look At

We won’t give away the secret sauce, but we can share the broad categories that shape our evaluations:

• Business Profile: Time in operation, growth signals, and stability indicators.
• Ownership Strength: Experience, reputation, and commitment from the principals.
• Equipment Purpose: Whether the asset is essential, strategic, or speculative.
• Cash Signals: Activity, consistency, and patterns in bank behavior or earnings.
• Deal Design: Structure, risk offsets, and what the borrower is putting in.

It’s not just about data—it’s about how the pieces fit together. We never evaluate in silos.

Built for Decision-Makers

Unlike black-box models that spit out “yes” or “no,” our system is explainable, scalable, and practical. It empowers junior underwriters with structure, while giving senior staff the room to apply real-world experience. It enhances clarity—not complexity.

Tech-Enabled, Human-Led

We’re adding AI enhancements to flag patterns, benchmark risk, and streamline workflows—but never to replace people. At SLS, technology serves the team, not the other way around.

Conclusion

The SLS credit model doesn’t just assess risk—it respects it. It helps us grow without losing our grip on what matters most: thoughtful, fair, and confident lending built for real businesses.

That’s the kind of future we’re underwriting.