Capital Solutions
Deal Of The Week
Trucking financing is tough when you have bad credit. This trucker wanted to buy a 2003 Peterbilt 379 but had some problems.
The Problem: Customer Wanted A $25,000 Truck And Had Zero In The Bank And No Trade In
This guy didn't even have cash to put fuel in the tank. Not to mention insurance, plates, etc. Not an exciting deal to say the least. We were wondering why the dealer sent the deal to us in the first place.
- No cash made this customer a default waiting to happen
- He had been out of work for over two months. Limited track record and no comparable credit
- And, you guessed it: he had terrible credit
Luckily for the dealer and customer we have a policy of digging deeper to look for that nugget of gold.
The Solution: A $125,000 Piece of Land For Additional Collateral
On paper this guy had nothing. But we called him up to get his story. Good thing we did. We funded the deal for $30,000! Here's what we did:
- He had land worth $125,000 that was free and clear. He was willing to pledge it to get around the issues
- Although he didn't have any money he was well connected having over ten years of experience in the business
- He had a written contract to haul for a national carrier
Because we were so well collateralized we were able to give him $5,000 in cash to get him going.
Asking Questions Made This Deal Happen.