If you are in a leadership position at a financial institution, I’m sure you are bombarded with opportunities to learn more about all sorts of new products and services from an endless line of providers. Having served in several leadership roles, most recently as Market President for a community bank for the past 12 years, I can certainly understand why you budget your time wisely and choose to focus on things that will help your business the most. In my experience, I was always most interested in partnering with companies that offer products and services that have a direct impact on my ability to provide a better experience for my clients.
Several years ago, I established a relationship with the team at Equipment Leasing Services (ELS), a leasing company based in Scottsdale that has been in business since 2000. There are a number of reasons why I felt it important to partner with them. I’ll share those reasons with some specific examples:
As a small community bank, not only did we have challenges regarding legal lending limits, but we also had internal hold limits that restricted our ability to meet the needs of some of our borrowers. In one example, we had a client who had received financing for multiple owner-occupied commercial real estate properties, as well as an operating line of credit. The client was growing, and we anticipated some future needs for an expanded line of credit. So, when they came to us with a request to finance some equipment, we brought in ELS to structure leases to meet their needs. This allowed us to meet the client’s needs, maintain the relationship, and leave lending capacity for the increase in the line of credit.
In another circumstance, we had a client growing rapidly and bumping up against covenants established for their line of credit. In this case, an operating lease structure was appropriate as the assets were owned by ELS and leased to the client, so it did not impact their balance sheet. In addition, the timing of the request was about six months prior to the line of credit maturity, and since our underwriting team was extraordinarily busy with other requests, it made sense to partner with ELS for the interim request so as not to overwhelm the underwriting workflow.
Finally, we had a client with multiple brick-and-mortar locations who decided to venture into a mobile delivery format. While the relationship was very strong and cash flow positive, we determined that given the collateral (vehicles) and the need to maximize the advance rates, a lease structure was best. So, ELS stepped in, helped structure the leases and acquire the vehicles, and the customer continued to grow their business.
In all of these examples, several things were consistent. First of all, ELS always worked as a partner with the Bank, meeting with clients, serving their needs, and helping the bank expand the relationship. They always conducted themselves in a professional manner, as you would expect with a strategic partner. Secondly, ELS always provided its products and services in a timely manner, meeting the expectations of the bank and the client. Finally, they communicated well. They never left a banker or client hanging, waiting to hear the status of a request.
As a leader, you need to choose your partners carefully. Your reputation, the reputation of your bankers, and the reputation of your bank often depend on the independent abilities of your partners. I learned to trust the team at Equipment Leasing Services so much that when I had the opportunity to join their organization, I jumped at the chance. As the Executive Vice President and Director of Banking Programs at ELS, I look forward to helping you meet the needs of your clients in the same way they helped me with my clients for over a decade.
