Capital Solutions
Deal Of The Week
Customer needs a truck and start up money
The Problem: Customer Wanted To Purchase A Truck, Had Bad Credit, And Need Cash For Start Up Money
No lender wants to work with someone with no cash flow. This one was a challenge right from the start. He had been a company driver with no money saved. He needed money for fuel, insurance, and other start up cost. Here were the hurdles:
- He had no cash whatsoever. He had been living pay check to pay check with no money saved for his new business
- He was a first time owner operator with no experience owning a truck before. Also, he had no comparable credit
- He had a 550 credit score; lots of late payments
This is the type of customer you hate to waste your time on. On the surface there was nothing to put a deal together with.
The Solution: We Were Able To Secure The Deal With Real Estate
Using real estate affords us lots of flexibility on how we structure deals. His parents had a free and clear home we could place a lien on to put this one together. Here's what we were able to do:
- The equity in the home allowed us to pay for the truck and give him $3,000 in cash to start his business
- The customer had a written contract to haul for the same company he had been working for
- We allowed an early payoff after nine months so he could refinance the truck or pay it off completely
The equity in the home and his relationship with his company were the tools we used to put this one together. We actually funded this deal two months ago and he is doing very well.
Again, on the surface this deal looked like a no-go. But with just a couple of questions to the customer we found a way to put the deal together.