Capital Solutions
Deal Of The Week
Customer wants to purchase a Peterbilt but has bad credit and no collateral.
The Problem: Customer Wants To Purchase A $30,000 Peterbilt, Has Bad Credit, And No Additional Collateral
Without additional collateral we can't approve a customer. This sort of stopped the deal dead in it's tracks until we could solve this problem. There were other complications on the deal:
- Customer had terrible credit. Score was under 500 with recent derogatories and limited history
- He was a first time buyer with no previous history of ownership
- Along with the bad credit he had no other credit history. No comparable credit or history of making these kind of payments
On the surface this deal looked impossible. But as we looked deeper into the deal and started asking questions we discovered some possibilities.
The Solution: Customer Had A Cosigner That Put Up Trucks For Collateral
This is a good example of how asking questions can make a deal happen. After interviewing the customer we found some interesting information:
- He had taken on a partner that had three other trucks free and clear that were available for additional collateral
- The customer had $7,000 to put down
- Between the customer and the partner they had more than enough prospects for business
Once we found out about the additional collateral we knew we had a deal. We just needed to fill in the missing pieces; mainly their sources of business. We had this deal funded in a week.
As long as we can get additional collateral from somewhere we can get around most credit isssues.