Minnesota Valley Transport, New Ulm, Minn.
Dan had purchased a trucking company, Minnesota Valley Transport, three years earlier. From the purchase, he had a seller’s note and equipment debt, and the short-term repayment was straining the business despite its good cash flow. He needed a long-term credit package that would provide manageable repayment for all of his financing needs.
Conventional loans for truck equipment are typically 3-6 years. Because Dan also needed to incorporate the seller’s note, a loan with 10-year terms would provide a more ideal solution. A longer-term option wasn’t available through conventional credit.
Solution and Results
LendXP found a lender willing to refinance the company’s debt with a 10-year SBA 7a loan. The credit facility saved the business a significant 40% on its monthly debt payments. This allowed the trucking company to retain more of its profits and pay for equipment with cash instead of adding additional debt.