Preferred Collateral - Example

Equipment: Sale Leaseback on trucks & trailers
Size: $100,000
Term: 36 Mos.
Structure: First + Last
Hurdles to transaction:

Sale-Leaseback on 11 titled vehicles
Old equipment
Leveraged balance sheet due to fully depreciated hard assets
L6 cash
Auto salvage business in Florida

Reasons for approval:

2:1 Collateral Coverage
Satisfactory personal credit – 690 FICO
Clean business credit
Good story and interview

Summary:
Eight (8) year-old salvage business in Florida needing $100k sale leaseback on 11 titled vehicles to generate cash to expand his inventory. (Normally we limit the number of equipment pieces to no more than 5.)