This 90-minute program will be presented live September 12, 19 & 26, 8:30-10:00 a.m. Central

Description:

Most commercial and business borrowers require equipment in their operations, but it is perhaps the most under-utilized type of financing that they request. Bankers consistently encounter borrowers that have loaded too much small-equipment purchasing (not

financed) and down payments (even when financing is used) into their working capital needs, resulting in frozen, non-revolving or evergreen lines of credit. This program provides the analytical tools (with case examples) to understand how equipment

finance needs arise, and how to use financial statements or tax returns to determine historical patterns of capital expenditures and related long-term financing, plus gaps between purchases and financing. This allows the lender or analyst to position your bank to be proactive in helping customers optimize or maximize equipment financing, while minimizing its draining effect on

working capital via small purchases (not financed) and down payments. From there we explore how leasing fits into the financing picture, including the different types of leases. We also provide an overview of upcoming accounting changes for capita

  • Specific topics to be covered include;
  • Overview of equipment financing (loan or lease) compared to three other major categories of commercial/business loans (seasonal credit, bridge financing and operating lines of credit)
  • Industries that tend to have stronger equipment financing needs
  • Equipment loan vs. lease: Advantages and disadvantages of each, plus key issues
  • Usage of the depreciation deduction vs. rent expense within other taxation concerns
  • Keeping debt off the balance sheet within leverage concerns
  • Capitalized leases vs. operating leases and upcoming FASB changes
  • Case example of how to capitalize an operating lease for analytical purposes
  • Issues with equipment as collateral, plus loan monitoring, administration and common pitfalls

Target Audience: 

Commercial and business lenders, credit analysts, community bankers, private bankers and portfolio managers; plus loan review and examination specialists, and credit officers involved evaluating or approving equipment financing.


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