Capital Solutions
Deal Of The Week
Customer wants to finance multiple trucks
The Problem: Customer Wants To Buy Two Trucks Spaced Three Months Apart
Not really a problem but it does require structuring. The dealer wants to sell the customer two trucks but the customer doesn't need the second truck until his other contract comes in, three months later. Here are the complications that come with this:
- The dealer wants to know the customer is approved for both trucks. He can than order the second truck four weeks before expected delivery
- The customer wants both trucks but only wants to make payments based on the trucks as he acquires them
- The lender (us!) wants to do both trucks but doesn't want to have to underwrite the customer twice. Approve him once, doc it once and do both trucks
This can be a great "upsale" opportunity for a vendor. If you get a guy expressing the need for multiple trucks offer him the following solution. You might be able to double the sale with this type of approval.
The Solution: We Set Up A Master Lease For The Customer Allowing Him To Purchase Both Trucks Over Time
Master leases are popular in the construction industry when a company wants to spread their equipment purchases over time. We set up the approval for both trucks. Than we do a separate "takedown" for each truck under the approval. Here's how we did it:
- We approved him for the total amount of both trucks. Yes, the guy had bad credit so we got additional collateral from him to do it
- We did the first take down last week. He will make his first payments based on that truck
- When he is ready for the second truck (takedown) we will fund the dealer for the second truck and the customer will start making payments on that truck as well
Again, a great way to increase the size of a sale for a customer. Many times they are confident they will need more trucks going forward.
We have creative ways of increasing your business. Give us a today.