A line of credit is established and small amounts are dispersed, as needed, for specific contracts. If they have the contracts lined up, they WILL get financing, especially for something with a higher profit margin like fuel or services. This isn't rocket science.
It can be done. A few years ago me and a buddy of mine started a company and secured a half million dollar bank loan based on a business plan and an inflated appraisal. At the time of the loan we had zero cash flow and were in debt to 3 private investors to the tune of 600k. These type of loans get done every day.
Conventional lending wouldn't loan on "valuable contracts" either. This co. goes to specialized lending groups that loan to their type of business.The same applies if I needed to buy 6 or 8 new buses, I go to the people that specialize in new bus loans. Conventional lenders mandate prohibit unconventional lending.. Not to mention the higher rates they have to pay.
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