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Independents Can Gain Perspective on Long-Term Funding Strategies in NEFA Session

March 13, 2018, 07:15 AM
Filed Under: NEFA

In today’s improving economy it is a good time for independent equipment finance companies to plan for long-term growth funding, said Hugh Swandel, a senior managing consultant with The Alta Group who is moderating a panel on funding strategies for independents and brokers at the NEFA National Equipment Finance Summit in Las Vegas this week.

The panel on March 15 includes Chris Lerma, chief credit officer of Allegiant Partners, Inc.; Tom Howse, executive vice president of Securcor Financial Group; and Andrew K. Alper, vice president and shareholder at Frandzel Robins Bloom & Csato, L.C.

The panelists, representing multiple perspectives, will outline a path to gain better leverage and well-priced funding in their session covering:

  • Various kinds of financing available and long-term strategies
  • Current market for funding and key changes ahead
  • What to look for in funding relationships.

When seeking funding it is important to be well prepared to secure the best possible rates, Swandel advised. “Too many times we see credit policies that are not well-documented. And while many companies have good internal reporting, they often lack the kind of management reports needed to gain third-party trust.”

Swandel, who is active in North American mergers and acquisitions on behalf of Alta, a global consulting firm, has spoken at events hosted by the National Equipment Finance Association in the past and he previously served on the association’s board.

While there is currently some liquidity in domestic equipment leasing and finance markets, Swandel said it is timely for independents and brokers to reduce their dependence on discounting and look more broadly to prepare for bigger facilities, from warehousing and national bank lines to private securitizations. He advised they should never wait until they are desperate for funding.

There is a path even for smaller companies to diversify their funding sources but it requires presenting their companies in the best possible light, stressing a capable management team, reliable data points and diversification, he added.

More on this NEFA conference is available here.

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