Capital Solutions
Deal Of The Week
Customer needs to finance a truck body
The Problem: Customer Wants To Purchase A Tow Truck Body To Be Installed On His Existing Chassis
Lenders don't like to do this for a few reasons most of which deal with coordinating funding with the installation. This customer also had bad credit which made it impossible for the vendor to get this done. Here were the challenges:
- The dealer wants to be paid before doing the work and the lender wants to be guaranteed the install takes place before payment
- The customer had a poor payment history from a previous failed business
- The truck body is non titled so extra precautions have to be addressed before funding
With a deal like this there are a few extra balls in the air that need to be juggled. But as you probably already know we will find a way to get this done. Why, because we are the best damn sub-prime commercial truck lender in the country! (sorry, had to spice things up a bit. These stories can get a little mundane)
The Solution: Customer Puts Up Additional Collateral And We Put A Lien On The Chassis
With us it's all about additional collateral. It helps to solve the two big issues on this deal: coordinating funding and customers bad credit. Here's how we did it:
- We put a lien on the chassis the truck body was going on. This secured us on both the funding issue and the bad credit issue
- We did a UCC-1 lien on the chassis. This covered us just in the case the install wasn't completed
- We got a lien on another truck he owned to help us compensate for the bad credit
Additional collateral can help get around almost any issue. In fact these deals are common, sometimes installing APU's, motor rebuilds, etc. We got the deal done inside a week.
If you need financing for a project like this give us a call.