Capital Solutions
Deal Of The Week
Customer wants to finance both a truck and trailer.
The Problem: Customer Was Buying A Truck And Trailer From Two Different Dealers And Had A Recent Bankruptcy
This wasn't actually a problem but we are demonstrating our flexibility with funding and credit. Normally the customer would end up with two different deals. Most people find this inconvenient having to apply at two different financing companies hoping they both come through. Here are some other issues with this sort of arrangement:
- Many lenders won't approve you if they know you have just recently taken on more debt. You just financed a truck so they won't do the trailer, for example
- The customer may get approved for one and not the other
- Too many inquiries on the credit bureau's tend to bring a score down further. This is a factor for a guy with already damaged credit
This is an issue that keeps someone from buying a truck. They need a trailer to go along with the truck but can't get the financing so the don't buy the truck in the first place. It affects everyone.
The Solution: We Structured A Master Lease To Accommodate Both Deals
The truck sold for $23,000 and the trailer sold for $15,000. We approved the customer for $38,000, did one set of documents, and we sent out two separate checks; one to the truck vendor and one to the trailer vendor. Here are some other facts:
- Customer signed one set of docs for both truck and trailer. He will make one monthly payment for both
- Both truck and trailer vendor got paid before the equipment left their location
- For future credit reference purposes he has a high credit of $38,000, not $23,000 had this been done separately
It sounds like a sales pitch but we really are in the business of pleasing vendors and customers alike. Getting new business is hard. That's why we like repeat business. And repeat business comes from exceeding everyone's expectations.
By creating a master lease we made everything much easier on everyone.