What you need to know before requesting a repo
The Lobel Financial Repo Policy isn't published as a single public document you can download and hand to your collections team. It lives in the servicing agreement, the security agreement, and a series of internal operational memos that Lobel distributes to their field repossession contractors. If you're a borrower or a guarantor reading this because you've already received a notice of intent, the first thing to understand is that Lobel doesn't repo equipment on autopilot. They route through a network of third-party reclaim vendors, and the timeline from request to actual retrieval is almost never the 48 hours people expect. My experience with their process is that the average elapsed time runs closer to 7 to 14 business days for standard collateral, depending on where the asset is located and whether it's mounted to a permanent foundation. Here's how the policy actually operates on the ground. Lobel's default position under their standard secured lending terms is that upon default, they exercise their right to take possession of the collateral without going through court. This is a UCC Article 9 non-judicial repossession path. The policy requires a written demand for payment first, usually a 10-day cure period, unless the security agreement contains an acceleration clause that permits immediate repossession upon a specified event of default. I've seen accounts where the borrower missed a single payment and Lobel moved straight to filing a repossession instruction with their vendor network within three days, which was allowed because the loan documents included a waiver of the cure period for certain default triggers. The key sections of the policy that people consistently miss are the collateral condition requirements and the reimbursement framework. Lobel will not just take the asset and walk away. They require the borrower or the party in possession to make the equipment available in a manner that allows safe loading. If the asset is bolted down, confined behind other machinery, or situated in a location that requires special rigging, Lobel passes those additional costs back to the debtor. I had a situation last year where a fabrication shop in Kentucky had a CNC mill bolted to a concrete pad inside a bay that was blocked by two other workcells. Lobel's repossession vendor quoted an extra $2,400 for structural unbolting and crane access. The borrower hadn't realized the policy covered those expenses. The total reclaim cost including the outstanding balance came to roughly $47,000, and the equipment itself was worth maybe $38,000 at auction. That negative spread is exactly why the policy includes provisions for deficiency judgments.
There's also a post-repossession process most people don't account for. After Lobel takes possession, they hold the collateral for a redemption window, typically 10 to 15 business days depending on state law. During that window, the borrower can cure the entire outstanding balance including repossession costs and storage fees to get the asset back. I've watched this go badly for small businesses that thought they could negotiate just the missed payments. The policy is clear: redemption requires payment in full of everything owed, not just the past-due amount. Once that redemption period closes, Lobel moves to disposition, which is usually a public or private auction within 30 days. The proceeds from the sale go first to Lobel's costs, then to the loan balance, and any surplus is returned to the borrower. Deficiencies become a receivable that Lobel assigns to a collections department or sells to a third-party buyer. One counter-intuitive thing about this policy is how aggressively Lobel documents the condition of equipment at the time of pickup. Their vendor network photographs everything, records serial numbers, and files condition reports that become part of the auction record. This isn't just bureaucracy. I've seen borrowers try to dispute deficiency amounts by claiming the equipment was already damaged before repossession. Lobel's documentation usually shuts that down quickly because the condition reports are timestamped and geotagged. The practical implication is that if your equipment has pre-existing wear, document it separately before Lobel ever contacts you about a default. Take your own dated photos and have a third-party mechanic inspect and certify the condition. It won't stop the repossession, but it gives you leverage when Lobel's auction report comes back with a lower-than-expected hammer price and they're calculating your deficiency. Another nuance that people miss is the geographic scope of the policy. Lobel's standard repo instruction covers assets anywhere in the United States, but the timeline and cost structure changes dramatically depending on whether the asset is in a major metropolitan area or a rural location. I worked with a client who leased a mobile generator that had been moved from Tennessee to a remote construction site in western Montana. Lobel's repo vendor quoted 21 business days and an additional $3,100 for transport to the nearest qualified reclamation facility. The policy doesn't distinguish between urban and rural pickup, but the vendors they contract with do, and those logistics get baked into the reimbursement chargebacks. If you're operating equipment across multiple states, this is worth factoring into your cash reserves before you miss a payment.
The biggest mistake I see borrowers make under the Lobel Financial Repo Policy is ignoring the notice requirements. Lobel is required by law and by their own policy to send written notice of repossession and subsequent disposition. This notice must include the right to redeem, the estimated balance owed, and the time and place of the sale. I've seen account managers at Lobel send these notices via email alone because the borrower had previously communicated primarily through email. That's a procedural error that can delay the entire disposition timeline. If you're on the receiving end of a repossession notice and something about the delivery method looks off, note it immediately. A properly served notice is Lobel's lifeline if you later challenge the deficiency. An improperly served notice gives you grounds to push back on the entire collection. On the downside, this policy leaves borrowers with very little room to maneuver once the clock starts. Lobel's turnaround times for processing redemption payments are not fast. I've submitted complete payoff packages and waited five business days for confirmation, during which time storage fees continued to accrue at rates that vary by location but typically run between $25 and $75 per day per asset. If you're trying to redeem, call the servicing department directly after you submit paperwork. Email confirmations don't stop the storage clock. The policy is structured so that every day between your default and Lobel's auction date is billed to you, whether you're actively working toward redemption or not. For anyone dealing with this right now, the practical path forward is to get a copy of your original security agreement and the servicing addendum that Lobel sent when they took over management of the loan. These documents contain the specific repo provisions that apply to your account. The general policy I've described here is representative of their standard operating procedure, but individual agreements can modify cure periods, redemption windows, and cost reimbursement structures. If your agreement differs from what I've outlined above, your agreement controls. Lobel's repo department will reference your specific loan number and the exact clauses in your contract, not a generic policy summary.
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