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
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.
