Capital Solutions
Deal Of The Week
Customer gets his truck repo'ed. We get it back!
The Problem: Customer's Truck Gets Repossessed Putting Him Out Of Work
Customer calls us in a panic. His lender repossesses his truck after falling behind two payments. He stands to loose his contract if he doesn't get back on the road in a hurry. Here were the facts:
- With late fees, etc the outstanding balance came to $18,000. The lender accelerated the note. They would not take any more payments. They wanted the full balance
- Customer only had $4,000 in cash
- The truck was going to auction in ten days. Plus they were charging the account $100 a day storage should he want the truck back
Tough deal to say the least. The first thing we wanted to know was why he got into trouble in the first place. We broke out our magnifying glass!
The Solution: The Truck Was A 2007 Kenworth. We Had Equity And An Explanation About The Repo
The truck booked out at $35,000 so we had the equity (collateral!). What we really wanted to know was how and why he got into this mess in the first place. Here's what we found:
- The customer experienced a temporary cash crunch with some unexpected personal bills (his wife crashed their car into their living room!). This was an unusual set of circumstances, not indicative of his normal business
- He had strong relationship with the company he hauled for. He had been there five years and all indication was that he would be there for many more years
- After speaking with the lender we confirmed they were difficult to work with. We got a final payoff letter and took care of the debt
Yet another example of how asking questions can help solve a problem.
This deal shows just how flexible we can be.