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Driver Annual Renewal - Financial Info
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<blockquote data-quote="bacha29" data-source="post: 3446138" data-attributes="member: 58386"><p>What do you mean banks won't lend you cash to invest in the stock market? What do you think trading on margin is? You say that you own a more valuable asset? Outside of the NADA book on your trucks there is no book on the intangible asset known as your contract. A couple of kids at the station wanted to buy out a multi route contract . I put up the down payment on the condition that they get the rest themselves. They went to the bank armed with the DP but not much else. The bank despite the DP in place would only lend based on the trucks book because it was the only tangible physical asset in play. They wouldn't lend them a dime for that so called contract. They might have had a chance with an SBA if there had been enough time to put one through but they only had a few days. Now in recent years there may have been a formal book made on XG contracts banks can loan off of but again it's an intangible asset.</p><p></p><p></p><p>This may help to explain why you see more contracts on the market with sellers requiring cash secured by the sellers personal assets. No SBA's or any other unsecured forms of borrowing.</p></blockquote><p></p>
[QUOTE="bacha29, post: 3446138, member: 58386"] What do you mean banks won't lend you cash to invest in the stock market? What do you think trading on margin is? You say that you own a more valuable asset? Outside of the NADA book on your trucks there is no book on the intangible asset known as your contract. A couple of kids at the station wanted to buy out a multi route contract . I put up the down payment on the condition that they get the rest themselves. They went to the bank armed with the DP but not much else. The bank despite the DP in place would only lend based on the trucks book because it was the only tangible physical asset in play. They wouldn't lend them a dime for that so called contract. They might have had a chance with an SBA if there had been enough time to put one through but they only had a few days. Now in recent years there may have been a formal book made on XG contracts banks can loan off of but again it's an intangible asset. This may help to explain why you see more contracts on the market with sellers requiring cash secured by the sellers personal assets. No SBA's or any other unsecured forms of borrowing. [/QUOTE]
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