Have a Financing Question?
Just Ask Lou
For the past 10 years ClearPath Financial has been helping Construction Companies and Trucking Companies fulfill their equipment financing needs and meet their revenue goals. We talk to business owners each and every day so we thought it might be fun to post some of the many financing questions that we receive. Here is a sampling:
Q. In these tough economic times, my credit is shot. However, I just got a nice contract and I need equipment for that project. Is there a way to get financed with really bad credit?
A. Yes, there are a few options that we can recommend. Often lenders will overlook bad credit if you have additional collateral that you own free and clear. The equity in your existing equipment can usually overcome your poor credit score. Also keep in mind that we do not credit score when you are able to put 50% down and for established companies another option is to consider your company cash flow as it will outweigh any credit issues. Call us for the details.
Q. I have been in the construction business for a few years now and I recently found a great deal on an excavator priced way below the market value. The excavator is being sold by a private individual; can ClearPath help with this kind of financing?
A. Yes we can. This transaction is commonly referred to as a “Private Party” sale. Since heavy equipment is not titled many lenders wish to stay away from funding this transaction because ownership of the equipment can come into question. Before getting started, be certain that your seller can provide a “proof of ownership” certificate such as an original bill of sale.
Q. We get this one a lot – I wish to purchase a semi-truck; what is the minimum credit score that you will accept?
A. As previously mentioned, our additional collateral program and our 50% down program do not credit score so any credit score is acceptable. For established businesses, our cash flow program does not credit score either. For our other programs, we are more interested in the credit history rather than just the credit score but getting around most credit issues will usually require a down payment or an equivalent trade-in for a semi-truck purchase.
Q. I presently have a piece of equipment financed with another lender but I wish to refinance for a longer term and lower my payment. Can you help?
A. Yes – Some of our solutions are credit based but others are based on the equity in the equipment. In addition to asking your lender for a pay-off letter, you will also need to request a payment reference showing a history of timely payments. Once you have both items – give us a call.
Have a question of your own? Simply complete the “Ask Lou” form below and we will get back to you directly or post our response in a timely manner.