Lightning never strikes twice in the same place…or does it?

We could hardly believe our eyes!  A second large tree had fallen into my Mother’s house just two months after the first such incident. Is there an algorithm that could have predicted this?

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According to Wikipedia, an algorithm is a step by step method of doing something to predict an outcome or solve a problem. It is commonly used for data processing, calculation and other related computer and mathematical operations.

As someone who is in the Lease Finance Business, I am familiar with the use of algorithms to predict loan/lease defaults. The Creditors who advertise instant loan or lease approval are using the scoring number that an algorithm has calculated. 

If a business owner needs a cash infusion, a mobile app tool could be the route of choice for them. However, if their company is adding capital equipment with the funds, a lease might be more suitable and have advantages over a loan.

While most lease providers do depend on data that is generated by algorithms to determine credit worthiness, they also consider many other factors, including historical knowledge & instinct. Thus, the credit analyst gains a more complete and, hopefully, accurate assessment of risk while the customer gains a fair & open hearing.

The Insurance and Credit industries are both dependent on the ability to predict outcomes so they can hedge against the possibility of a loss. Even with the best of data and a thorough vetting of the applicant, a tree may fall on a house again or a business can go under unexpectedly. 

Just as the infamous insurance commercial states, “I know a thing or two because I’ve covered a thing or two.”, I can say, “I’ve leased a thing or two.” 

Beware of falling trees,

Kevin F. Clune CLFP
Clune & Company LC