Type of business
| Transportation & Logistics Company
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Total Project Amount
| $322,000
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Client/Bank Objectives
| In this transaction the client was in a rapid growth mode and seeking payment relief on their existing debt structure which was under a rapid amortization. They were also looking to purchase two new trucks for their operation.
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Challenges
| Because we were financing a fleet of trucks that can be located all over the country at any given moment, collateral was a concern. In addition, the borrower was seeking to purchase two new vehicles with a minimal down
payment.
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Outcome
| The SBA allows the financing of rolling stock (vehicles) over a 10-year amortization with very little down from the borrower. We were able to restructure the debt of the company and purchase two new trucks with little down from the borrower. In addition, we were able to reduce the monthly payment by almost $6,000.
In the end, the borrower benefited from a reduced monthly payment (nearly $69,000 on an annual basis) thus keeping more cash in their pocket. The transaction furthermore demonstrates that SBA loans aren’t only for new or struggling businesses. Rapidly growing businesses can also benefit from the generous terms the SBA loan programs have to offer. USFC is committed to our local small businesses and this transaction shows our ability to arrange creative financing solutions for all of our clients.
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