A Low FICO Score Didn’t Keep Ayala Bobcat Service from Financing Essential Equipment to Grow Sales
Chris Ayala and his father joined forces to start a ground clearing business in 2014. Drawing on that 
experience, Chris set out on his own as a sole proprietor and started Ayala Bobcat Service in 2016. His company, located in San Antonio, Texas, specializes in landscaping, ground clearing and excavating. In just two short years, Chris has cultivated and strengthened business relationships with landowners, homeowners’ associations, and real estate agents and developers. Having such a diverse client base results in a steady stream of landscaping and ground clearing projects.
The Need for Equipment
In Chris’s line of work, projects don’t get done without a compact track loader. Renting this equipment was costing Ayala Bobcat Service $3,000 per month. Chris could get the equipment his business needs to grow and gain measurable cost savings by financing an equipment lease versus renting.
Chris located a used Caterpillar compact truck loader for lease at a local San Antonio equipment company. Not only did the machine meet all of Chris’s requirements, such as horsepower, high-flow hydraulics, oil cooler, and two speeds, it was priced at $48,500, which is well below current market price. An evaluation valued the CAT 299 at $58,150 at auction and $66,141 retail.
Between the CAT 299’s features and attractive price point, Chris knew it would sell quickly. He had to move even quicker.
Overcoming a Low FICO Score to Secure Equipment Financing
In the eyes of big banks and traditional lenders, financing equipment for Ayala Bobcat Service represented risk. Chris is a sole proprietor without big, corporate assets and his FICO score wasn’t perfect. In fact, it was low.
Global Financial & Leasing Services (GFLS) looks beyond what numbers on a financing application. We spoke to Chris after reviewing his application and learned more about his loyal customers, the demand for his services, the outstanding deal he’d found on the CAT 299, and that he was a homeowner with deep roots in his San Antonio community. The compact track loader’s vendor signed a remarketing agreement, so Chris would have help selling the equipment when it goes off-lease at the end of the term. Chris could then use those funds to finance another compact track loader if he chooses.
Yes, Chris’s credit report had a collection blemish, which lowered his FICO score, but all other accounts were paid as agreed.
We worked diligently with Chris to ensure Ayala Bobcat Service had the equipment required to succeed. And, we did it quickly so that Chris didn’t miss out on the perfect compact track loader for his business. If other lenders have said no to financing equipment that is essential to your sales and growth, GFLS can often say yes, so tell us about your financing needs.
