Why and How Community Banks Should Engage in Equipment Leasing
While the final tally is unknown, total U.S. capital spending in 2021 is showing considerable overall strength, with many sectors expected to have exceptional growth. Top performers will likely be the agriculture, construction and transportation sectors.
The U.S. economy is expected to spend approximately $1.9 trillion on plants, equipment and property this year, with more than $800 billion to $900 billion of this total expected to be financed. Leasing has and will continue to play a vital financing role for many agricultural producers and small- to medium-sized businesses, with growth in 2021 estimated around 10%. While community banks in our country are essential to businesses and agricultural producers, with deep, meaningful – and often personal – business-customer relationships, community banks often do very little to assist their customers with leasing. With large regional or national banks offering leasing (to your customers), community banks need to engage. The challenge for most banks has been how to engage and at what cost.
Bell Bank has a safe, practical and easy pathway forward for community banks. Our correspondent leasing program is designed for you to easily bring the “best in leasing” to your customers. Consider these benefits:
- No investment or cost to your bank
- Your bank remains customer facing
- No agreements or obligation from your bank
- Highly competitive rates for your customers
- No documentation (we handle all operational aspects for you)
- No servicing
- No credit risk (unless through a participation)
- No additional personnel
- Strengthen, expand and protect your customer relationships
- Subject matter expertise available anytime for you or your customers
In addition, Bell can help you market leasing services. We give you marketing material with your logo and contact information at no cost. We can assist you with adding “Leasing” as an option on your website. And, we can work with your lending team to identify opportunities within your existing customer base – opportunities that are likely going to another bank or company today.
There are many types of leases available. Some allow your customer to keep all tax benefits, but some do not. Depending on your customer’s tax objectives, lease structures and documentation need to be done in a specific manner. Bell has the resources and subject matter expertise to ensure your customers achieve their tax goals. In the end, our careful attention to detail and tax laws, combined with lower and more competitive lease rates, allow you to bring meaningful value to your customer.
Getting started is easy. We can meet at your bank to provide a simple overview of our program, how the process works and answer your questions. Please contact me or your Bell Bank correspondent banking officer to simply start a conversation. We look forward to working with you and your bank!
Deposit and loan products are offered through Bell Bank, Member FDIC. Investing and wealth management products are: Not FDIC Insured | No Bank Guarantee | May Lose Value | Not A Deposit | Not Insured by Any Federal Government Agency.
SVP/Bank Channel Director
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