Capital Solutions
Deal Of The Week
We use additional collateral from a cosigner
The Problem: Customer Has Terrible Credit And Has No Additional Collateral
We tell this story again to illustrate the importance of getting additional collateral to qualify for our program. By asking a customer if he has additional collateral you can turn a decline into an approved deal. Here are some of the issues we can get around by getting additional collateral:
- Bankruptcy. Even if it was discharged yesterday we can work with people with recent BK's
- Repo's. We have even refinanced the repo'ed truck so they can get their truck (and equity) back
- Foreclosure. A more common issue these days. We understand the current housing market and can work with this
Additional collateral is a strong compensating factor when dealing with bad credit. Anytime you have a customer with a credit issue you should be getting in the habit of asking for additional collateral.
The Solution: No Collateral? We Can Take Collateral From A Cosigner
On this deal the customer did not have any additional collateral. The father, who had a trucking company, was able to put up one of his trucks to help re-establish his son. If your customer doesn't have any additional collateral ask if they have a cosigner that can put up something for them. This is just another tool in your funding arsenal. This can help you with the following:
- Close more deals. When you can go deeper on credit you can fund a wider range of customers
- Maintain profit. We find that the customer's focus is on getting financing, not negotiating price. Dealers tell us they are able to maintain their profit margins better on these type of deals
- Attract more customers. When you are known to be flexible on credit you will attract a larger number of customers
As we come out of this recession we still need to do everything we can to close more deals. Alternative financing is a great way to attract more customers and sell more trucks.
Capital Solutions, helping dealers sell more trucks.