Faced with a >$4 million tax lien and a near-due balloon payment, school bus operator needed cash to make things right with Uncle Sam and payoff existing lenders.
As the company and fleet grew, they needed to address a tax liability to assure continued growth. At the end of 2017, their tax liability totaled more than $4 million. Additionally, they owed a couple of equipment lenders over $400,000, one of which had an impending balloon payment. These obligations jeopardized everything they had worked so hard to build.
However, the company had several positive things going for them. First, it had an abundance of equity in its existing fleet to use as loan collateral. Second, the company has several large, long-term contracts to demonstrate a guaranteed revenue stream. The new equipment loan would not be new debt, but would allow them to pay off the IRS, eliminate several existing lenders, streamline monthly payments and improve cash flow.
They needed a lender that would:
CCG structured a loan that accomplished the following: