Financing new equipment purchases can be difficult in the current economic environment, especially for small manufacturers. However, one bank says it is approaching the market with a different perspective to buck the trend. Illinois-based Banterra bank is expanding a specialty lending division dedicated to financing machine tools and other manufacturing equipment. According to John VanDaele, who heads up the division, the company offers a product that combines the advantages of simple bank financing and equipment leases.
Most shop owners choose one of these two methods to finance new purchases, Mr. VanDaele says. However, in the current economic environment, a given shop might be reluctant to use up credit availability with the local bank. Likewise, typical equipment lease packages can contain prepayment restrictions and non-cancellable clauses that the shop might want to avoid. “Most shop owners want simple, competitive bank financing when they add new equipment, but they also like the streamlined process often offered with an equipment lease,” he explains. “We offer a simple bank loan product and combine it with a convenient application process, just like the leasing guys,” he explains.