Deal Of The Week
Customer falls behind on payments. We were able to help.
The Problem: Customer Is Behind On The Payments On His Truck, Is Facing A Repo Situation
A common story in this economy. The customer got behind on his truck payments and can’t get current with the lender. The lender was threatening to take the truck. Obviously this would kill his business. No lender would consider refinancing the deal to get rid of the current lender. Here were the issues:
- Customer ran into a cash flow snag when the company he hauls for didn’t pay him for 30 days
- This started his cash flow problems, getting behind with everyone
- Surprisingly the lender refused to work with this guy. Once he got back on track they wouldn’t restructure the loan to allow him to get current
We get calls from people in this situation every week. Most of them were self inflicted meaning the customer simply didn’t handle their finances properly. But this one is an example of someone that deserved a closer look.
The Solution: Customer Gave Us The Title To His Second Truck For Collateral. We provided the commercial truck financing he needed.
The second truck gave us the equity we needed but it was the customers explanation of what happened that made the deal happen. Here’s the story:
- The customer had been current for two years with the lender before his cash flow crunch
- The company he hauls for experienced a cash flow crunch themselves resulting in our customer not being paid. First time this had happened in the seven years he had been working with them
- The customers cash flow returned to normal six weeks after the problems started. This was a temporary problem
The lender played hard ball with their customer which was the real cause of the problem. The didn’t understand the issues that are unique to the trucking industry which are: sometimes guys don’t get paid. We understand that so we did the deal.
Our company name was actually recommended to us by a customers ten years ago. We provide Capital Solutions to people who need them.