Pub. 11 2021 Issue 2

23 PUB. 11 2021 ISSUE 2 ONE LAST THING ... Did you know that you can enjoy your association news anytime, anywhere? Scan the QR code or visit: the-arizona-banker.thenewslinkgroup.org Check it out! The new online article build-outs allow you to: • Stay up to date with the latest association news • Share your favorite articles to social channels • Email articles to friends or colleagues There is still a flipping book for those of you who prefer swiping and a downloadable PDF. logistics company that wanted to refinance its fleet of vehicles and trailers. Due to the many years of working closely with the customer and providing many loans, the bank had reached its lending limit. Knowing the customer might turn to other lending institutions for financing, the bank turned to ELS. ELS was able to prevent the logistics company from needing to shop around by providing a highly competitive rate, helping to consolidate and lower the monthly payment on their fleet. Another bank reached out to ELS because they were working on underwriting a multimillion-dollar loan for a customer, and the customer needed to finance a smaller piece of equipment worth $300K before year-end. The larger transaction was keeping the bank busy, and they didn’t have the immediate capacity needed to finance the other equipment. ELS quickly assisted in financing the smaller piece before the end of 2020 with internal funds, allowing the company to take the depreciation and get the equipment they needed. Collateral Banks generally have collateral requirements for lending, whether in regard to geographical location or types of collateral. This may limit their ability to extend credit to customers who have increased needs outside of these boundaries. Collateral created an obstacle when a bank partner of ELS had a strong deposit relationship with an emergency medical flight company but was unable to provide a loan on their aircrafts and necessary equipment due to the bank’s collateral liability policy. ELS used their niche expertise in servicing specialized equipment by providing financing agreements for their aircraft and other aviation collateral. If a company finds its business expanding out of the state of the current operation, this may create challenges for a bank only chartered to lend in specific areas. The ability to supply funds to nationwide locations for all types of equipment through ELS provides additional flexibility to the originating bank but is transparent to the customer. This struggle came to light when a bank’s longtime client was looking at purchasing a transportation company out of state and sought to refinance the assets and secure funds needed to complete the acquisition. Through an ELS sale-leaseback of the entire fleet of trucks, funding was provided for $3.2 million in cash of the $6.0 million to complete the purchase of the existing businesses. Alternative financing is a powerful channel for banks to meet their customers’ growth goals, thereby protecting their customer relationships in this ever- changing economy. We have financing products available for you to increase your business opportunities with clients and potential clients that may not fit within your bank’s in-house portfolio. Call us today. We can help. w