Infrastructure Bill to Generate Leasing Demand from Community Bank Customers
New infrastructure legislation recently approved by Congress is expected to inject billions of dollars into a variety of industries – chief among them the road and bridge construction sectors. Already stressed from equipment shortages, supply chain challenges and demand-driven capital needs, customers in these industries will look to their community bank for new financing. In addition to a higher demand for traditional borrowing, there is expected to be a higher demand for equipment leasing.
Leasing provides a good option for many companies. As customers manage additional growth (and cash utilization), many will look for 100% financing, which is commonly available when leasing. In the majority of cases, customers will look for a finance or capital lease under which depreciation benefits (Section 179 and Bonus Depreciation) are kept by the customer. However, tax situations can vary, and a tax lease may be preferred. In both cases, 100% financing is an attractive feature during high growth. In addition to the 100% funding benefit, customers look to leasing because it is often quick and easy.
Community banks are of course well-equipped to handle customer loans. However, many community banks are not positioned to discuss or respond to leasing requests from customers. As a result, when a customer does decide to lease, the transaction is completed with an independent or large competitor bank.
Bell Bank has a correspondent leasing option designed specifically for community banks. It is a fast, powerful and easy solution for you to be prepared for any lease request.
There are NO:
- Residual risk
- Recourse or credit exposure
- Servicing requirements
- Staff or system additions
The process is a collaborative effort with your lender, and you remain customer-facing. Best of all, you can offer this product to your customers and prospects, generating meaningful fee income, while creating new customers or expanding and strengthening your existing customer relationships.
Contact Mike LaSalle or your Bell correspondent banking officer today, and be prepared to capture any leasing opportunity that might arise. We would be happy to meet with you and your lenders to provide an overview of this correspondent solution!
SVP/Correspondent Bank Leasing Director