A: Yeah, I actually had one that we worked on a week or two ago… It was a pretty recent one. That was one was pre-approval for one of our opportunity programs for start-ups. Really solid application. The credit score was up there – I want to say it was in the 700s. This one had two PGs on it, and that’s how we had to do it, because it was a married couple. The wife had excellent credit – had some pretty big credit depth as well – but the husband was the one with the CDL, so we had to add him on there. He had some issues in the past with credit. One thing, he had a bankruptcy. That was several years back, but it still came up on the credit report. So, it went from about a 29% rate to around 35%, with a security deposit that was around 20%, or so. We quoted 10% previously – luckily, they were okay with the terms after the re-score and we were able to close that one.
A: It was the wife.
A: Exactly, yeah.
A: You know, it was actually an easy one, surprisingly. She didn’t give too much push back. She was pretty much okay with it for the most part. She had questions around it, obviously. But I explained, you know, husband’s credit had some dings on it, so we weren’t able to grant the pre-approval terms, but we had this other option where we could finance the full amount. The security deposit is also 100% refundable, so that kind of eased things a little bit. But yeah, she didn’t give a whole lot of push back. We closed that in about nine days from when I received the application all the way until we funded the equipment. She just wanted to make sure she was able to get the truck in the end.
A: She wasn’t aware that we needed to add him on there, but she was okay with it after the explanation. I mean, she didn’t have a CDL. We weren’t able to get a deal without the husband, because, again, he was the one with the CDL, and she didn’t have any experience in the field either, so it was going to ding the approval possibly to one of our lower programs if we weren’t able to add the husband on there. So, after we explained that, she was on board, and so was the husband, so it was a pretty easy transaction, even though there were some complications along the way.
A: Yeah, I think as long as you explain to the customer what the situation is, why we’re not able to get the terms that we initially quote, that explanation helps them to move on from what it could have been to what it actually is and see if we’re still able to make it happen in a timeframe that matches their expectations.
Next week we will check in with another one of our finance officers in one of our other offices. Stay up to date and learn more from our valuable resources at www.AmericanEFS.com/The-Bottom-Line