Small Businesses, Big Dreams: Prairie Business Credit Celebrates 30 Years

Thirty years ago this month, Trevor Morgan founded Prairie Business Credit to provide working capital to worthy businesses unable to borrow from banks. In the three decades since, Prairie Business Credit has helped nearly 70% of its clients progress to bank or self-financing. To mark the 30th anniversary, we sat down with Trevor to learn more about why he founded Prairie Business Credit, his experience running a small business while lending to small businesses, and why he can empathize with the joy and struggle of being an entrepreneur.  

The founding story

Growing up, Trevor got to see firsthand the life of an entrepreneur. “My father was in business for himself, almost accidentally – but he enjoyed it. He had a different and better idea on how to run a grocery business.” 

After serving in the Navy, Trevor earned a bachelor’s in business from Bowling Green State University and a master’s in banking and finance from Northwestern before going into banking. His early roles in Milwaukee focused on asset-based lending and commercial finance. The next years found Trevor steadily ascending the career ladder, with leadership roles in Chicago and, as he recalls, a nice corner office. But he bristled at how some in the banking industry looked at entrepreneurs applying for loans. In the decision process, he saw an opportunity to genuinely connect with and help business owners. Ultimately, he says, “There was no way around it without running my own lending business. I got tired of hearing myself complain about how things were done and realized it was time to work for myself.” 

Like it is for most founders, going from the corporate world to running his own business was a bit of a shock. “I instantly understood what the struggles were, because no matter how good you are at a particular part of a business, you can’t assume that you’re good at it all. But you’ll have to learn how to do it.” Trevor remembers having to teach himself to turn on a computer, and then learning to write the business’s operating software, as there was nothing available at the time for a small, PC-based factoring company. “It’s enormously humbling, because you end up realizing just how little you know.” 
​
A unique insight into financing

What Trevor did know well from his banking and turnaround experience was how to structure specific types of deals, and how people pay their invoices. “Now I can see that it took the first 10 to 15 years of being in business to start to understand the limits of what I knew and where I could make a difference. Those insights informed how I really wanted to go about my business and where I really wanted Prairie Business Credit to focus.”

Trevor focused Prairie Business Credit’s lending in two categories: service to bankers and lending for growing businesses with solid potential. “I discovered that Prairie Business Credit could be helpful in guiding bankers with troubled deals in ‘softening the landing’ for businesses, because we know how to manage invoices and handle the cash. That can make all the difference,” he says while reflecting on the first category. “In the other side of the business, we work with entrepreneurs with a good idea and business model who need investment to grow, but they aren’t going to qualify for bank financing, and they are too small for traditional venture capital. We take them on when we know they will be successful, and factoring is a great vehicle to do this.” 

Helping business owners achieve success

Trevor’s experience running a small business has instilled empathy for what every entrepreneur goes through. “I get to see it from the side that most businesses never do, because I’ve been both the borrower and the lender. When you own your own business, every decision you make is yours.” 

In 2003, his son Dylan joined the business, making Prairie Business Credit a family-run business. This helps Prairie Business Credit connect with the entrepreneurial clients they lend to, which are often family-run businesses. 

Trevor, Dylan, and the team have been able to help a remarkable number of those businesses achieve success. “We have graduated 70% of our clients to bank financing or self-funding,” Trevor points out. “Nothing is more exciting than being successful. We love hearing our clients’ stories and figuring out how we can help them get where they want to go.” 

Trevor reflects on how invoice factoring has changed over the last 30 years and on Prairie Business Credit’s commitment to continuous improvement. “When I started the business, it was called ‘hospice lending.’ I have loved doing the work, figuring out how to cut the losses and help other entrepreneurs succeed. We always aspire to be the people you want to call first.” 

Today, Prairie Business Credit is a national working capital provider to young, growing, or recovering businesses. We offer accounts receivable financing, purchase order financing, and equipment financing. Our company serves both as a trusted financial resource and consultant to entrepreneurs dedicated to building their businesses and ensuring their success. Learn more at https://www.prairiebiz.com.







​