Capital Solutions
Deal Of The Week
Customer wants to finance an 18 wheeler while STILL in Bankruptcy
The Problem: Customer Wanted To Purchase A Truck But Was Still In A Chapter Seven Bankruptcy
We work with people with past bankruptcies on a regular basis but this customer was still in the BK; it hadn't been discharged yet. He had a good story and had plenty of business. The problem was securing our interest in the deal. Here were the issues:
- The customer needed to get an affidavit from the trustee allowing him to take on the debt and release something that we could use for additional collateral
- We had to work through his attorney which created issues regarding time frames, etc
- The customer needed this truck right away to keep a contract he had obtained
We knew this customer would make the payments if we could get the affidavit and get this all done in time.
The Solution: We Were Able Get Permission From The Trustee And Funded The Deal In Time
The trustee needed documentation from us in order to approve the customer for the additional debt. The customer had a 2002 Kenworth so he was able to cover our additional collateral requirement. Here's how we did it:
- The trustee needed to see projected income from the truck. We worked with the customer to put this together
- We explained to the trustee that we required the additional collateral due to the credit situation
- We convinced the attorney to speed the process so the customer could make the deadline
It took a lot of work on our part but we got the deal done for the dealer in about ten days.
It's our job to find a way to put a deal together. This one took some work but we got it done for the dealer.