Capital Solutions
Deal Of The Week
Customer is buying a 2002 Freightliner FLD 120
The Problem: Customer Wants to Purchase A 2002 Freightliner For $18,000 But Has A Credit Score Of 490
This is actually a typical deal for us. Customer wants to buy a older truck and he has terrible credit. This is an example of our no minimum credit score policy. Here were some of the other obstacles on the deal:
- The customer had a company hauling dirt locally. With this truck he was going long haul; a totally new venture
- He was limited on cash
- The bad credit was due to a failed attempt at another business. This caused us concern that he didn't have the management skills necessary to become an owner operator
Still, with these problems we asked questions to see if we could find the strength to do a deal.
The Solution: The Customer Had Sufficient Collateral To Overcome The Weaknesses On The Deal
The customer owned two dump trucks that were free and clear. Dump trucks typically hold their value very well and they compensated for the terrible credit. Here is what else we found out:
- Although the customer was going long haul for the first time he had been able to secure a written contract from a national carrier. We spoke to someone with the company and they were able to give us a comfort level that the contract was solidThe two dump trucks had an auction value of over $25,000 which covered the cost of the deal
- The previous business failure was due, in part, to a bad business partner that mis-managed the finances of the business
Good, solid collateral and asking the right questions got this deal done. By getting the story of the previous business we felt this guy deserved a second chance.
By getting additional collateral we can overcome the lowest of credit scores.