I recently worked with a young roasting company that was growing fast. Their coffee was dialed in, their wholesale accounts were expanding, and they were ready to invest in a larger roaster to keep up with demand. On paper, they were doing everything right. Revenue was solid, cash flow was steady, and they weren’t carrying any debt.
But when they applied for equipment financing through our financing partner, they were denied.
The issue? Skinny credit.
"Skinny credit" doesn’t mean bad credit. It means there isn’t enough credit history for a lender to evaluate. This roastery had always paid upfront, avoided borrowing, and run lean. That’s a common point of pride for founders (including us!). In many ways, it reflects smart financial habits. However, from a lender’s point of view, there was no record of borrowing or repayment. No loans. No equipment leases. No vendor accounts reporting payment history. And unfortunately like most small businesses, their credit cards were tied to the founders and not the business EIN. As a result, the business had nothing on file to prove it was creditworthy. They were basically invisible.
Here’s the irony. Not carrying debt can be a sign of strong finances, but having a small amount of debt and managing it well is what helps build a business’s credit profile. Lenders look for evidence that a company can borrow responsibly. Without that record, a business might appear risky or unknown at the very moment it needs financial support to grow. That’s why when it makes sense, even if they have the cash to pay outright, seeking out financing on even a relatively small equipment purchase like a weigh/fill, industrial grinder, and/or sample roaster might be the key to unlocking the financing you're going to need in the future.
That kind of financing helps build your credit file. It creates a positive payment history, and shows banks and vendors that your business is active and reliable. Think of it as giving your business a financial resume. When you later apply for a larger loan, a lease, or a credit line, you’ll have a better shot and getting the help you need.
If you're interested in talking more about putting together a quote and seeing what kind of terms you can get, give us a call at the office at 612-886-2089. Our lender lets us bundle equipment, supplies, even coffee roaster venting. It could be a Summer 2025 project that is the foundation for your 2026-2027 expansion.
