CONSTRUCTION & EXCAVATION

Construction

Time In Business

4 Years

Employees

7 Full Time

Equipment Type

Yellow Iron

Ticket Size

$50,000 – $75,000

Equipment Details

Case Excavator

 

Weaknesses (Cons)

  • Poor personal credit score of the guarantor
  • No net worth of the owners

Strengths (Pros)

  • Cap Reduction (rental credits)
  • Good value of additional collateral
  • 4 year contract to fulfill

Creative Solution

The case excavator is a good piece of equipment that is essential to their business. This equipment will increase revenues by approximately $15K a month. As part of the rental, they will be getting a credit from the vendor as a capital reduction. This will be about $15K, bringing the total request to $55,111. Lessee has a dump truck that’s owned free and clear that they could pledge as additional collateral instead of providing a higher security deposit. That in combination with the vendor crediting the rental payments towards the purchase price got credit comfortable with the transaction.