Capital Solutions
Deal Of The Week
Customer wants to purchase a commercial truck but doesn't have a CDL
The Problem: The Customer Wanted To Purchase a 2002 Kewworth But Didn't Have A CDL
Lenders don't like this sort of thing and we are no different. We have to rely on their business management skills over and above the normal skills required for a trucking business. Here were the issues:
- The customer was buying the truck as an investment. They would hire a driver to drive the truck
- Credit was shaky at best. They had no previous lending history at this dollar amount
- They were limited on cash
The deal was weak all the way around. An interview with the customer revealed some interesting details.
The Solution: A Strong Background In Trucking And Great Collateral
The customer was very well connected in the trucking industry with the family going back three generations in business. Here's how we put it together:
- With her connections there was no doubt she would be able to put the truck to work
- She had tons of equity in her home that we could use for additional collateral
- She ran the books for her family's trucking business previously so she new the business side of things
After looking deeper into the deal we found a really great customer with great collateral. The only issue was the lack of a CDL which was easily overcome by the strong points on the deal.
With the right questions we can turn a dead deal into a funded transaction.