Capital Solutions
Deal Of The Week
This trucker needs to pay off the existing lease on his 2005 Kenworth W900.
The Problem: Customer Was Locked Into A Lease That Kept Him From Hauling For Other Companies
We had a customer come to us directly that had a lease with the company he was hauling for. This company wasn't giving him enough loads and he was restricted by the lease from hauling for other companies. Here were the problems:
- He had no cash to pay down the debt
- The truck was a 2002 Freightliner FLD 120 which, by itself didn't give us the two to one ratio we needed to fund the deal
- And, you guessed it, he had terrible credit
The customer would make significantly more money if he could leave the company and drive for other sources. He needed a lender that could understand this.
The Solution: Using His Trailer For Collateral And Focusing On Future Earnings
The customer had a 2002 reefer that we could use to get our two to one ratio on collateral. This gave us the equity to move forward. Here are some of the other ways we put the deal together:
- The customer had been in the industry for a long time. With his connections we felt confident he would make more money on his own
- He had a good payment history from when he bought his Freightliner
- His bad credit was do to a divorce and not in any way tied to his business
All of these factors made this an attractive deal or us. We funded the previous company within about a week and the customer is already driving for another company paying him 35% more than what he was making.
The backbone of our program is additional collateral. This along with the ability to make the monthly payments will get you approved nine times out of ten.