How I Unexpectedly Got a $392,000 Equipment Deal Through Underwriting

Early 2020, just a few days after New Years day I got a call from a vendor. He eagerly expressed his concern to get one of his clients financing for a Grinder, a Loader, and a Trommel Screen totaling $392,000 all in.

Like most deals when you first hear about them, you feel that initial jolt of excitement rushing up and down your body. However, being a mature commercial loan broker, you have to understand all of the moving pieces that make a deal successful and be able to anticipate any obstacles you may have to overcome through the life of the deal.

Per the vendors request, I jumped on a call with the client looking to attain this equipment. Turns out he just got approved from the city for a Debri yard that would generate upwards of $6M on an annual basis with his proposed contracts in place and if he was able to secure the equipment he needed in order to fulfill those workloads.

On that initial phone call with him, I asked him several questions and he politely answered all of them. At the end of the call, I requested the documentation I needed from him in order to generate a proposal. He concurred and sent me over documentation shortly after. When I sent his package in to underwriting, that’s when I got a call about some red flags.