By now you know BlackRiver doesn’t only fund Structured transactions…

…along with Structured transactions, we fund “B” and “C” deals, with just first and last due at signing!

And in case you didn’t know…

…be sure to check out our last blog post HERE where we discussed the three types of deals that we fund (B, C, & Structured).

Today we are going to take a more detailed look at our “C” Program:

So… what are we looking for specifically for these kinds of deals?

These borrowers are slightly more credit challenged, so we’re expecting some hair on the credit. (Some hair. Not Farrah Fawcett circa 1973….no past auto repos, child support issues, open tax liens, or unsatisfied judgements)

We are closely looking at three things here:

  1. Banks

We want to see close to 75% of the request in monthly bank deposits and around 2X an estimated payment in average ending balances. What does that mean? If a borrower is looking to finance a $40,000 truck we want to see about $30,000 in monthly deposits and around $2,200 to $3,500 in ending balances. We are looking that they can make the payment, plus have cash reserves at the end of the month in case you know what hits the fan.

 

  1. Time in Business

We need to see greater than 2 years’ time in business for borrowers to be considered for this program. Obviously, the longer the TIB, the better!

 

  1. Equipment

First and foremost, when looking at equipment types we ask ourselves “how easily can we get this thing back & sell it without losing money if the customer stops paying us?” If it’s “drivable” the chances are pretty good that we can find it and it be worth something…If it’s an oven installed inside of a restaurant we probably aren’t going to be able to get that back if things go south, so we take that into consideration.

We are also look closely at the retail prices and auction values of every asset we finance.

Questions?

Want to learn more?

Contact Stephanie at 5120942-7221 or stephanie@blackriverbc.com

It’s Thursday, so you know what that means!

Correctly answer 3 trivia questions in the comments below for your chance to win! (If you get stuck check out your broker guidelines. Don’t have any broker guidelines? Lost yours? Get with Stephanie to get your copy TODAY!)

  1. How many years must a borrower not have gone through a BK to be considered for our “C” Program?
  2. What % of monthly deposits are we looking for in relation to the equipment cost for our “C” Program?
  3. What is the maximum net funding amount for our “C” program?