Capital Solutions
Deal Of The Week
First time owner operator buying his first semi truck
The Problem: Twenty Year Old Kid Wants To Purchase His First Truck, Just Got His CDL
Fresh out of driving school, this gutsy kid wants to come out of the gate owning his first truck. Prior to driving school, he had never driven a semi truck before. Vendor was hot to get this done. But here were the obvious problems:
- He had no contacts. He hoped to get loads off of load boards and "friends"He had no previous business experience. He worked at his father's garage since graduating high school
- He had no budget worked out on the truck. He didn't realize what it cost to run a truck
This was a failure waiting to happen.
The Solution: Mom And Dad Offers To Put Up Their $300,000 Free And Clear Home For Collateral
What we do as parents to show our love and support for our kids! These kind folks offer to put up their greatest asset to help out their son. Well, we have a surprise - WE STILL DECLINED TO DO THE DEAL! Here's why:
- Based on our interview with the customer we felt there was no way he was going to make it. The parents would have lost their home
- The parents were doing it out of love for their son not because the felt strongly about his prospects
- We couldn't do the deal with a clear conscience. We were convinced the guy would fail
While the vendor was upset that we didn't do the deal, the parents seemed a bit relieved. No, we didn't close the deal for the vendor but we saved the parents some very serious emotional and financial distress.
We never want to set up some one to fail. If we don't think you'll make it we wont do the deal.