Balloon Payment Deal Of The Week
Capital Solutions
Deal Of The Week
Customer has a balloon payment coming due
The Problem: Customer Had A $20,000 Balloon Payment Coming Due At The End Of The Month; Had Bad Credit
We get these calls everyday. Customer enters into a TRAC Lease (or something similar) with another financing company and has a residual payment coming due. Their credit is shot and they stand to loose the truck. Here’s what we were facing with this customer:
- He had $20,000 coming due on a 2003 Freightliner. Auction value on this truck was not enough to get the funding he needed
- His credit was bad due to a divorce. He had a home in his name that was under foreclosure
- He didn’t have any cash to “buy down” the residual
He was a very unhappy guy. If he doesn’t fix this problem he has to give the truck back. Not good since he had been paying about $1,500 a month for the past three years. He needed Freightliner financing fast.
The Solution: Additional Collateral – He Was Able To Put Up A Second Truck To Solve The Problem
With our program, additional collateral is 90% of the solution. The customer had a second 2003 Freightliner he could put up for additional collateral. Here’s how we did it:
- We found out the foreclosure was due to the ex-wife not paying the mortgage after they split up
- The second truck gave us enough equity in auction value to put the deal together
- We confirmed he had solid contracts to work off. He was a well established guy
Big problem diverted. We got the additional collateral and the customer was able to keep his truck. All were happy.
If you have a ballon payment coming due give us a call 520-760-3648.