A: This guy had a pretty solid credit application, however, he was Hawaii-based. Looking at the best place he would qualify, we came to the conclusion that one of our funding sources would be the best fit. I got him approved with no obstacles on that front, however some of the other obstacles in the case were one, obviously him being in Hawaii, two, the equipment was here in Oregon, three, the equipment was under lien with US Bank, and four, It was a private party sale.
A: Yeah… five as well, he wanted to include the shipping in the financing. Let’s see if there is six… yeah, six was that we could not pay the shipping company directly because of just how they account for it on their end. So, I think those were probably the six main obstacles there in putting this deal together.
A: To start out, you know, we got with the private party seller, and they informed me that they were selling this for $32,000, where they still owed six-two or seven thousand, so we had to pay US Bank, and US Bank being a big institutional bank, you know, their process can be a little bit slow. We had paid them, and then they took 10 business days (exactly on the mark from what they told us) when our funding source received the title down in Colorado. So once that was done, we were able to pay the sellers, the private party, the rest of the money, because we wouldn’t release the funds to them until we had the title in hand, obviously signed off, and the lien removed. So obviously, private party sellers being private party sellers, they want their money as fast as they can, so that was a little frustrating on their end, which I totally get that. But, we got that taken care of.
A: Then, it was time for the buyer. He had a brother out here to pick up the truck to bring it up to Seattle and get it out on the barge, which, you know, took about another 7 to 10 business days to get it delivered to Hawaii, and then the truck sat in Maui for a few other days because of some weather, or something like that. So then he finally got the truck, took possession of that, paid the shipping company, and then we reimbursed him, finally, to essentially fund the entire deal – that took about a whole quarter. It was really dragged out, but I think we were really able to add value to the customer. You know, we were able to get him approved, get everything paid for, actually get it shipped out to him while he was there in Hawaii. I just think all of that together, it was just a really solid added value to the customer. It may have taken 3 months to complete, but you know, sometimes things like that are out of our control? The buyer was a really nice guy, really patient.
A: A couple of our funding sources don’t really do deals that aren’t in the continental United States, but luckily, we had one of our sources whose manager spends a lot of time out there, so they made a couple exceptions, and we were able to get this one done in the end. This was my one and only Hawaii deal!
A: Umm… Absolutely! Just have to send it back to the same funding source.
A: Well, maybe we’ll make sure the equipment is actually on the island haha. Just kidding. This was a very specialized truck, so it was definitely part of the circumstances. Could have been worse – the equipment could have been on the east coast!
A: But at the end of the day, we were able to get three different parties paid – the shipping company, the private party, and the bank to release the lien, and we even got the equipment shipped out to Hawaii. Overall, I think we added a lot of value to the customer on this one, and got everything finished up in a good way.
Next week we will check in with another one of our finance officers. Stay up to date and learn more from our valuable resources at www.AmericanEFS.com/The-Bottom-Line