Making the mark — Grade borrowers with benchmarking data
Abstract: Benchmarking is an insightful analytical tool. It involves comparisons between a company’s performance and industry norms or best practices. But not all borrowers engage in the benchmarking process, because they’re too bogged down with daily operations or unfamiliar with resources. Lenders can add value and protect themselves from financial distress by introducing borrowers to the process. This article offers a hypothetical example of how a lender can aid a borrower, and lists a variety of resources that offer benchmarking data.