Behind Rise in Truckmount Sales: Harder Working Credit Officers
Mukilteo, WA - Although sales are not back to their "pre-crash" levels, some truckmount manufacturers and distributors are reporting sales of truckmount carpet extractors are on the rise and that this trend has a good chance of continuing in 2011.
The turnaround appears to have started in mid-2010. Although there have been starts and stops, overall sales appear to be improving, according to distributors contacted in the Chicago area and around the country.
"An improvement in truckmount sales can be viewed as a key economic barometer for the industry, even the nation," said one distributor.
This is because truckmounts can be a costly investment with costs ranging from a few thousand to several thousand dollars depending on the unit and package selected.
Although the increased sales may indicate greater confidence in the future, at least among carpet-cleaning technicians, there may be other reasons for the improvement.
According to Leif Nelson, manager at Hathaway Capital, Mukilteo Wash., some loan officers in the industry are "going out of their way" to make loans. "They look at all avenues in order to approve customers."
They are doing this by providing a variety of financing tools and options as well as "seasonal" leasing programs designed specifically for the carpet-cleaning industry, adds Nelson.
They are also looking at much more than just an applicant''s credit score.
"Most conventional banks have tightened their lending practices and their decisions are often made solely on an applicant''s credit score," says Nelson. "Most industry loan officers do consider the credit score, but some consider other factors as well."
Among these factors mentioned are:
· If the company has a business plan;
· Possible collateral;
· Size of the down payment; and
· Financial statements.
Nelson adds that although an established company may have some preference over a new carpet cleaning firm, "some loan officers are making loans to people just getting into the business. You just have to be creative."
HydraMaster is a multimillion-dollar corporation with 150 employees and 90 representatives worldwide. The company manufactures several truckmount systems, a wide variety of accessories for high-performance truckmounts, and specialized cleaning wands.