Scania P340 2005 XLEP6X20055 Rigid Pantek Truck
The client, with a long history in trucking, recently decided to re-enter the business by purchasing a truck and accompanying contracts from an industry contact. He needed $66,000 to buy an 11-year-old truck through a private sale. Starting a new business just 2 days old under a new ABN posed significant challenges with traditional lenders. Although reluctant to refinance his two properties for funding, his property equity and available capital greatly strengthened his application.
Negatives:
- Newly established company with no financial records.
- 11-year-old truck involved in the transaction.
- Work sourced from a small, less established company.
- New Pty Ltd company (startup).
- Private sale of the truck.
Positives:
- Backed by property assets.
- Clean credit history.
- Justifiable past credit default.
- Extensive experience in the transport industry.
- Adequate working capital to cover operational expenses like fuel and wages.
Funding Solution:
- 100% financing with no deposit required.
- Structured as a chattel mortgage.
- 5-year term without a balloon payment.
- Low documentation requirement, using a cash flow forecast for affordability.
Despite some drawbacks, the strengths in this case provided sufficient leverage to secure financing. We chose a lender that values past industry experience and the applicant’s financial reserves, which are crucial for sustaining business operations during slower periods.
Victor from TransCon facilitated the application with a lender comfortable with funding startups and older vehicles, successfully securing 100% of the needed funds.