SCORE Houston episode: Bankers, mentors urge small businesses to prepare financials and treat debt as a tool

Raul Vasquez, host of the SCORE Houston TV series and a SCORE business mentor, opened the episode saying the program would discuss “access to capital for a small business owner” and offer guidance on preparation and keys to obtaining funding.

Monica Hill, a representative of JPMorgan Chase, and Senerio Ordonez, national Hispanic business development manager at Comerica Bank, told viewers that lack of clear information and preparation are among the biggest barriers to getting loans. "Misinformation or even enough research is necessary and, sometimes, not done enough," Hill said, adding that applicants often stop after one decline instead of researching other options.

The guests framed lenders’ decisions around standard credit criteria and practical preparation. Hill summarized the traditional lending criteria as the four C’s—capacity (including capital), character, collateral and credit—and said applicants should assess “can you pay this back?” before seeking a particular loan size. She told viewers to consider both what they will invest and what the business can repay.

Ordonez said community outreach matters for improving access. "One of the biggest challenges and barrier is really that information," she said. "You have to be out in the community, understand what those needs are," so banks can "level set and make the information accessible to our communities." The pair recommended meeting with bankers, accountants and other advisors to tailor loan requests to business needs.

Both guests described common lender priorities. Hill said cash flow is typically the primary source of repayment for most banks, guarantors are a secondary source, and collateral is tertiary. She noted that other lenders—asset-based lenders or some programs—may prioritize assets differently. Hill also referenced the Small Business Administration’s method of counting guarantors and personal cash flow when evaluating global debt-service coverage.

On preparation, the guests gave practical steps: have two to three years of financial statements and tax returns available; know whether the business is profitable or showing losses; understand both business and personal credit; and build a relationship with a lender. Ordonez said building trust through community outreach helps prospective borrowers understand available products and reduce misconceptions.

The episode also cited broader statistics raised by the host: Raul Vasquez said research from Stanford University suggests about 60% of small businesses overall are approved for loans while approval rates for Hispanic-owned firms can be lower (he cited roughly 40%). Vázquez also noted that small businesses make up about 99.9% of U.S. firms, a framing point for why access to capital matters.

Speakers stressed that debt can be a constructive tool if used with a plan. "Debt is a tool," Hill said. "If you're using it right... then it's going to serve the purpose that it is for." Practical advice repeated in the episode included keeping a healthy debt ratio (Hill recommended keeping debt under about 35% of relevant measures), matching borrowing to growth projections in the business plan, and assembling advisors (banker, accountant, lawyer) to plan the next stage.

The episode closed with a reminder from Vázquez that business owners seeking guidance can request a mentor through SCORE at score.org/houston.