THE Business for Sale Marketplace

THE OPPORTUNITY
This loan portfolio offering is an opportunity to purchase a portfolio of short term security notes, capital leases, and Terminal Rental Adjustment Clause (TRAC) leases on heavy equipment, primarily “rolling stock” such as trucks, trailers and construction/industrial vehicles. The majority of the notes require a full payout during the term, although some include terminal payments at the end of the lease term. An affiliated leasing services company services the leases and notes and provides brokerage and other services.

Most of the loans and the assets that collateralize them are located in Idaho. The current balance as of June 25th of these obligations, including unearned interest, totals $3,621,059; $2,895,759 of that is Capital Leases and notes, and $725,300 is TRAC leases. TRAC leases provide tax deferral to the note holder via accelerated depreciation from equipment ownership.

THE STRENGTHS
The loans are secured, and the offering is structured to deliver a 10% IRR to the investor. These loans are secured by heavy equipment. Additionally, the Seller will consider the sale of the loan servicing company. This option includes the ongoing opportunity to use the existing relationships, loan brokering business, and servicing contracts. The owner will consider offers that can yield a 10% return to the buyer.*

THE POSSIBILITIES
The affiliated loan servicing company can service the portfolio on behalf of a buyer. This may include generation of additional leasing assets, monthly reporting, customer service, revenue distribution, and sale of any repossessed assets or equipment. This arrangement can turn this portfolio purchase into an on-going cash flow stream. Financing is increasingly tight, and opportunities abound for non-traditional lenders and capital leasing firms.