Ask Lou

Just Ask Lou

For the past 6 years ClearPath Financial has been helping Construction Companies and Truckers fulfill their equipment financing needs and meet their revenue goals. We talk to business owners each and everyday so we thought it might be fun to post some of the many financing questions that we receive. Here is a sampling:

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. My construction company just received a multi-million dollar contract and I need working capital to start the project. Does ClearPath have a financing program to help me?

A. Yes - we have a Contract Financing Program with loans ranging from $150K to $5M. Both Government and Commercial contracts are OK. Approvals are based on the contract value (not simply FICO score) as well as the cash flow and profitability of your company. You pay only on the credit line amount in use. Those familiar with Accounts Receivable Factoring will find our Contract Financing solution to be more cost effective.

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 - In addition to asking your lender for a pay-off letter, you will also need to show a history of on-time payments. Unfortunately if you have a history of being late it is nearly impossible to a get a new lender to take on an already existing problem. If you have a good payment history with your current lender - give us a call.

Q. In these tough economic times, my credit is shot. However, I just got a nice contract and need equipment for that project. Is there a way to get financed with really bad credit?

A. Yes, there are two 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. Another option is to look at cash flow along with some additional collateral.  

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.