Equipment Leases and its lenders have been Financing the Transportation Industry for over 15 years, and every year since then, we have been faced with new and ever-challenging obstacles in the process of funding semis, trailers for over-the-road, as well as oil and gas industries. In 2017, we found ourselves among just a few financial groups able to fund customized trucks and trailers within the Oil and Gas industry due to the declining oil prices in 2014 and 2015. A Customer was looking for a partner to help finance new trucks and trailers ($525,000.00) and refinance some of his older units ($480,000.00). The issue was that most of this Customer revenue was in oil and gas, hauling mobile rigs to various Oil exploration sites.

Customized truck and traile

The primary bank already had $2 million in capital for this customer and could not lend to a company in a declining industry with that much exposure. The equipment that needed refinancing (monetized) was over seven years old. Most banks will not finance trucks over seven years old because the life of a truck after a new 36 months of financing would be over the life of that particular asset. The older trailers that needed refinancing were customized and deemed “Specialized” to be financed or sold on the secondary market. (If you are looking for financing, you must show proof of income and your business information.)

This customer was faced with multiple issues and had nowhere to turn financially. Equipment Leases and its partners provided one schedule with a payment strategy to match their cash flow on both new and old equipment. The customer provided three years of financials; two of the last three years did not have cash flow, and the most recent interim year, 2017, had shown a debt service and cash flow with positive, tangible net worth. The company was showing signs of turning the corner but needed some help to get past these trying times in the Oil and Gas Industry.

Needless to say, a new client became a long-term client because we were able to make a decision based on the company and its future, not just on the present situation and a falling commodity price. It was worth the risk for all parties involved.

In addition to our expertise in financing trucks and trailers, we also offer business vehicle finance solutions, helping companies secure financing for a wide range of business-related vehicles across industries.

Picture of Steve Hansen
Steve Hansen
Mr. Hansen is the CEO of Equipment Leases and manages all of the day to day operations. He has an extensive network of lenders that are invaluable partners in providing capital to the SMB market. He also has owned a web development agency for more than 30-years. In his career he has built more than 10,000 websites and sold many of his high trafficked sites to other larger agencies.