So a fellow banker who will be left nameless here to protect his identity met us at a show last year. He worked for a major bank who will also be left nameless in this story. That major bank, he knew, would not finance a moving company which he himself wanted to acquire as he had logistics experience in his past. This business had some vans as collateral and some nice cashflow…and that’s about it.

So he reached out to us to see if we could help and we liked the deal due to the cashflow. It didn’t bother us that it only had some trucks to offer as collateral. A lot of banks won’t even touch “rolling stock” scenarios as these assets have a tendency to “roll away” if things go bad. We were not concerned with this as we had done many of these moving companies in the past.

We were able to fund $2.8M on a 10-year note at a 9% fixed rate and the banker who will still remains nameless is a happy nameless camper!