The company is the leading provider of dry van trailer rentals and sales in the United States. They own and operate over 10,000 Trailers in over 10 states.
The customer had a large growth spurt and found the need for funding numerous older assets. The company depends on buying fleets of older trailers from transportation groups and then expeditiously renting the assets for a monthly rent. With each day representing opportunity lost, they required speed and financial structuring expertise to match the rental stream revenue with the lease cost.
First National creatively deployed a capital lease structure with a residual percentage matching asset cost to the revenue the asset produced monthly. With First National’s unique funding capabilities, the customer was able to establish a scalable relationship that offered almost unlimited access to capital for equipment needs with subsequent credit approvals. Finally, the structure also gave them the ability to improve their cash flow, empowering more flexibility to adjust monthly rental amounts for their customers. This resulted in a growing relationship and a capital lease structure offering additional flexibility to “right size” their fleet and gain market share.