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Story: The customer started a construction company and wanted to operate throughout the country. He believed private party sale equipment leaseback would help acquire tools.
Stroke of bad luck
After working hard for several years, one of his family members became sick. As a result, he had to take time off his business and he left his company in the hands of his employee. His family member’s health started to recover and he decided it was time to take care of his business.
He then discovered the employee had taken several loans under his name. He also wanted to purchase new vehicles for business expansion. However, his staff member was unable to generate adequate sales. As a result, the owner couldn’t pay back the loans on time and this took a significant hit on his credit score.
Upon downsizing his business, he then started focusing on new things. He aimed to meet the demands of existing clients in his locality. He was able to raise his credit score to 420 again.
The lender helps transform the business
He wanted to purchase a compact wheel loader. However, didn’t have the additional collateral to cover its cost. He then found a lender who provided private party sale equipment leaseback. The loaner allowed him to pay the remainder through a new deal. They collected collateral via cash downpayment.
The lender provided funds worth $40,000 which went to the seller, to make the payments for the construction equipment. The seller got the remaining $12,000, and this made all parties involved in the deal happy.
Customer: Owner of Construction Company
Credit Score: 420
Funding Amount: $52,000
Leased Assets: Compact Wheel Loader
Additional Collateral: $45,000 Forklift along with $3,000 in cash