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Story: Business owners have to take several loans for their companies. Debt consolidation with equipment sale-leaseback can help them. He studied the needs as well as requirements of clients to understand the market. He also discovered a demand for high-quality metal products. As a result, he wanted to start a business and become a supplier.
Excellent start to business
He approached several banks next to acquire the necessary funding. He then established a machine shop, with approval for equipment leaseback. It produced top-notch metal products for its clients. Next, he took loans with an equipment leaseback program, for purchasing new machines.
His machine shop was a top player, due to zero competition. A competitor emerged, providing low-cost, high-quality products. And soon he started losing clients, as he was unable to match the new business. Word spread and customers started turning towards his competitor.
Due to a change in client behavior, it was no longer profitable. He found it difficult to pay back the loans, due to lower revenue.
A new technique to make loan payments easier
He then decided to adopt debt consolidation, for easier repayment. It would give him the chance to decrease the expenses of his company.
Next, he approached a lender, who suggested equipment sale-leaseback. The new solution would solve his financial problems. The lender declared a lien on his business’s machine tools. At the same time, they paid off the creditors also. As a result, the lender saved over $5,000 worth of lease payments. They gave him the chance to restart and become successful. By reducing the payments, he was able to focus on his business. Over time, he took it to new heights.
Customer: Manufacturing Company
Credit Score: 570
Funding Amount: $300,000
Leased Assets: Sale-Leaseback
Additional Collateral: $400,000 + Metal Fabrication Machine