Capital Solutions
Deal Of The Week
Customer wants to purchase a 2003 Peterbilt
The Problem: The Customer Wanted To Purchase A $20,000 Pete But Had A $50,000 Federal Tax Lien
We know of no other lending institution that will work with a customer with an open tax lien. We have determined, however, that because the asset is titled we can safely use it as collateral to secure financing. Here's what happened:
- Due to a bad accountant the customer had under reported income for a five year period. This resulted in the large tax lien
- Other credit derogs existed
- He had previous slow pay on his current truck (which was now paid off)
Another concern was that the federal government might come in and garnish his bank account which, of course would restrict his cash flow.
The Solution: Customer Owned A 2005 Kenworth That Was Used For Collateral
He had some cash for a down payment and great value in the additional collateral. But we found even more strengths after talking with him.
- After talking with his NEW accountant we discovered he was on a payment plan with the government. Therefore there was very little threat they would garnish him
- He was able to put down $3,500
- He had a contract in writing to haul for a national company that had a great reputation for paying above average rates
This deal is a good example of someone being properly collateralized but what made the deal was the payment arrangement with the government. The threat from the tax lien was diminished due to this. Again further digging made the deal.
Yes, the economic recovery is starting to gain steam. But we still have to work hard to close every deal we can. That is why we can help you get the funding you need to grow your business.