Road Construction

Established Business

Construction

5 Years

25 Full Time

Heavy Equipment

$70K - $100K

Road Striping Equipment

Expansion and to fulfill existing contracts

• Previous personal BK of owner
• 45 Paydex shows that company pays its accounts payable over 30-60 day terms
• Revenues in 2009 were trending downward, much lower than the $3,828,369 in 2008
• 2009 Tax Returns still on extension in July of 2010

• Good TIB
• Good employee count
• Lessee provided debt schedule showing term debt obligations of $71,100/year
• Cash flowing positively
• Spouse works providing outside income
• Contract awarded for equipment's use
• Revenues dipped in 2009 ($2,990,126), interim indicates $5 million in revenue for 2010
• Guarantors have significant assets listed on balance sheet
• B2B customers are primarily government, state road projects
• Strong vendor will be there to service and support the equipment

With previous BKs, a very low Paydex, and negative revenue trends this request showed up on paper as non-qualified for an $87k lease. After taking more time to talk to the lessee and hear the real story behind the numbers, it became readily apparent that this was one of the better profile companies of its size today. The previous BK was an educational experience for the PG and the mistakes made were fixed. The 45 Paydex was actually due to the fact that this lessee’s vendors allow 30-60 day terms, because that more accurately matched up with government payment terms. A copy of the contract was provided to prove up the revenue generating quality of this equipment. Taking extra time to listen to the story is what got this one approved and funded.

Mike Wright