[Quickfunder]

Doing $250K a month.
$4K / weekly on present balance of $230K.
Good credit.
Looking for a term that can compete with On Deck, Kapitus, etc.

[FunderFunding]

I don't know ANY funder that would do that. Maybe you can do a leaseback if he owns his trucks

[Quickfunder]

I don't know ANY funder that would do that. Maybe you can do a leaseback if he owns his trucks

Not sure I follow. Current lender is taking less than the 10% that many funders take monthly ($16K vs $23K). So there should be room for an additional position.

[Yankeeman07]

Trucking is a very challenging market

https://www.spglobal.com/marketintel...slump-78316873

[Olderguy]

Sale leaseback...there is an operating lease and a capital lease.

An operating lease requires you to turn the vehicle in at the end of the lease or buy it.

A capital lease allows you to buy it at the end of the lease for $1.

Both take assets off the balance sheet.

Reach out with equipment list.

Truckers taking more than one position is a death knell...

(Yes the operating lease has lower payments)

And you don't want to purchase trucks which adds debt to the balance sheet - leases allow you to get a better chance of working capital funding.

Biggest problem I have getting SBA loans for truckers is lack of assets and debt ratio. Lenders are increasing the asset cover ratio now.

[Quickfunder]

Hey guys, thanks for all the responses. Turns out this is trucking repair. The business name was a little misleading. Any other A Paper 2nd position lenders out there that can compete w/ On Deck numbers?

[Quickfunder]

Sale leaseback...there is an operating lease and a capital lease.

An operating lease requires you to turn the vehicle in at the end of the lease or buy it.

A capital lease allows you to buy it at the end of the lease for $1.

Both take assets off the balance sheet.

Reach out with equipment list.

Truckers taking more than one position is a death knell...

(Yes the operating lease has lower payments)

And you don't want to purchase trucks which adds debt to the balance sheet - leases allow you to get a better chance of working capital funding.

Biggest problem I have getting SBA loans for truckers is lack of assets and debt ratio. Lenders are increasing the asset cover ratio now.

Got it. Thanks for running through that. As it turns out, he's repair which was not clear at first. But I understand and agree with everything you said here. I do not work with trucking co's often just because of how inflexible lenders are with the SIC.

[Olderguy]

If you want to send it to me with the equipment list, I can see what we can do to remove the debt from balance sheet and see if we can get them qualified for something better...if not now, then down the road.

Need Loan app, schedule of liabilities with debt, equipment list, P & L and balance sheet, recent tax return, 6 months banks, Fico

I can also submit to other A paper people too....need to see what makes the most sense here.

[closer129]

Doing $250K a month.
$4K / weekly on present balance of $230K.
Good credit.
Looking for a term that can compete with On Deck, Kapitus, etc.

You mentioned in other comments that it is a repair company. If they are a truck repair company my max term on a stack is usually 10 months but if the gross reserve is low enough and credit and daily balances are strong we can possibly price it as a first position deal. The reason why he can have such a good rate at a longer term is because of the really low gross reserve. I have seen ondeck give in house really good rates when the gross is that low. When they need more money and someone else comes in new and now the gross reserve is higher the terms cant be the same.


Scott Platto
scott@tmrnow.com
tmrnow.com
212-220-9872