Credit scoring plays a vital role in equipment finance, not only in guiding lending and leasing decisions but also in managing non-performing accounts and debt valuations on the back end of the business, according to Brett Boehm, CEO of TBF, a leading debt buyer in the industry. Boehm will speak on the topic in a concurrent session at 8 a.m. on June 11 at the Equipment Leasing and Finance Association (ELFA) Credit & Collections Management Conference.

The session, titled Practical Credit Scoring: Managing the Front and Back Ends in the Real World, will bring together key industry experts, including Adam Ohme of Channel, Adam White of Equifax and moderator Thomas Ware of Tom Ware Advisory Services LLC, alongside Boehm.
 
“Even with the most sophisticated credit-scoring tools, defaults and charge-offs are inevitable in this business,” Boehm said. “Being too conservative at origination can limit profitability and growth, so it’s about finding the right balance. This session will explore how credit scoring can support smarter decisions across an account’s entire lifecycle.”

Boehm will discuss how credit scoring and historical performance data inform the valuation of distressed debt—a critical topic for equipment finance organizations, which often sell off all or part of their charge-off portfolios.

“At TBF, we’ve developed a propriety algorithm called Data Driven, True Market Pricing, based on detailed debt recovery data from more than 27 years in the industry. It’s an excellent tool for determining accurate valuations in today’s market," he said.