Story: The case for collateral as security deposit with equipment leaseback is a construction company owner. However, a stroke of bad luck took a severe toll on his finances. As a result, he couldn’t focus on his business due to difficulties. His legal adviser explained the best way was to file for bankruptcy.
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Overcoming the odds
It became impossible to approach banks, due to his decision. A credit score is a way to determine the lending risk for lenders.
He worked hard, taking alternative routes to raise his credit score to 510. He turned his life by transforming his construction business. He consequently got a new project which involved the use of a bulldozer. As this client was vital, he wanted capital to make the purchase. A close friend asked him to approach financial institutions for assets at last.
He approached a bank for equipment leaseback for vehicle acquisition. However, they rejected him, as they refused to work with bankrupt clients. Due to the lack of funds, he thought of stopping this project. His financial advisor provided a solution to resolve this problem.
The lender gives a chance to transform the business
He then found a lender, who works with every customer. The lender asked him to provide collateral as the security deposit. As he offered his excavator worth $160,000, the lender gave him $150,000. He had to pay the first month’s payment and processing fee of $410 as advance. His company started receiving new clients, as word spread and more people heard about it. His business became a huge competitor in the local construction market.
Customer: Construction Business Owner
Credit Score: 510 after filing for bankruptcy
Funding Amount: $150,000
Leased assets: Bulldozer
Collateral: Excavator worth $160,000