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Story: Consumers with low credit scores face rejection from financial institutions. The owner of a trucking company didn’t have a great credit score. The reason was that his business didn’t perform as well as expected. The next best option available was tax liens equipment leaseback.
Start of financial troubles
He thought his company would produce large streams of revenue. However, his firm faced stiff competition from local competitors. They made it challenging to earn a substantial income from the market. He had taken several loans to purchase other equipment and tools for his business. Due to this, he was in a lot of financial trouble.
Repaying the various loans in the country was an uphill task. He couldn’t make them on time, and this reduced his credit score. At last, he had to make the most painful decision in his life to save his company.
It was essential to have the financial capability to continue. In fact, for the sake of his business, he chose to sell a portion of his assets. He stabilized his finances with this move, a boon for his company. He started looking to improve the revenue streams for his trucking company.
Change of luck
He came across a vendor who wanted to distribute perishable goods. However, he realized he needed a refrigerated trailer. He then found a lender who funded him $30,000. Thanks to the loaner, he could secure a titled equipment leaseback. The lender found it easy to overcome the tax liens judgments. They perfected the liens by asking him to provide additional collateral.
Customer: Owner of trucking company
Credit Score: 415
Funding amount: $30,000
Leased Assets: Refrigerated trailer
Additional Collateral: one $17,000 and $13,000 trailer