Before your company leases or buys manufacturing, construction, trucking, or medical equipment, it’s important to familiarize yourself with the variety of financing options that are available through your bank. As equipment finance manager for Nevada State Bank Equipment Finance, Bob Gordon matches business clients with the financing products that best suit their needs.



Cash flow is often a problem for businesses both large and small, so a traditional bank loan or line of credit may not be the best choice for financing equipment, Gordon explained. “Traditional bank loans are likely to require a larger down payment,” he said, “but because an equipment loan is backed by the equipment as collateral, and because Nevada State Bank has an entire department dedicated to equipment financing, we feel comfortable financing up to 100 percent of the cost of the equipment. Why put 20 or 30 percent down when you could use that money to fund day-to-day expenses or expansion plans?” He said the rule of thumb is to match the financing terms to the life of the asset. In other words, it’s best to use short-term financing for short-term business needs, and longer-term financing for long-term business assets, such as equipment that will generate revenue or reduce operating costs for the foreseeable future.



Gordon’s group can provide clients with preapproved “Equipment Guidance Lines” that can be used for equipment purchases. Just as preapproval for a car or a home mortgage can help consumers make smart purchases, an Equipment Guidance Line can allow businesses to move quickly. “Equipment, especially used equipment, is in high demand now,” Gordon explained. “If you find a great deal, you have to jump in fast with cash, or someone else will snap it up. If you have to wait for credit approval, you may miss out on a deal. An Equipment Guidance Line can be a very powerful tool.”



Gordon explained that some clients prefer leasing equipment rather than buying it outright. “We can offer leasing to companies that want the tax advantages and other benefits of leasing,” he said. “Having a balloon payment at the end of the lease can also keep monthly payments lower. We recommend that they consult with their accountant and tax advisor and then come to us so we can match their financing needs to the correct lending product. We’ll listen and design a lease to fit their needs.”



After discussing a company’s financial situation, Gordon and his team may decide that a loan that is guaranteed by the SBA is a better fit than a standard equipment loan or a lease. SBA equipment loans can be ideal for companies that are just starting out, are in a growth or expansion phase, or want to take advantage of longer repayment terms, which can help lower monthly payments. As an SBA Preferred Lender, Nevada State Bank is able to help these companies get financing for the equipment they need. 



Gordon explained that his group is a subsidiary of Zions Bancorporation, N.A., which operates banking divisions under local management teams and community identities in 11 states*. His team members are the equipment financing specialists for all divisions within Zions Bancorporation. “The only thing we do is equipment financing, and we do it all day long,” he said. “We’re familiar with all the processes and documentation. We do all our own loan documents, so turnaround time is very quick.”



This affiliation with Zions Bancorporation can be an advantage for clients with businesses that have operations in other states within the Zions footprint. “We understand the regulations and tax laws in other states in our region,” said Gordon. “If a company wants to expand into another state, we can even help them by hooking them up with a local bank for their accounts and other banking products.”



Although Gordon is based in Southern Nevada, he travels throughout the state on a regular basis, and advises and supports Nevada State Bank colleagues who have questions about equipment financing – whether it’s for a huge data center in Las Vegas or a family farm in Winnemucca.



Click here for details about financing equipment through Nevada State Bank.



 



* Arizona, California, Colorado, Idaho, Nevada, New Mexico, Oregon, Texas, Utah, Washington, and Wyoming.



Equipment financing is subject to credit approval; terms and conditions apply.



The information provided is presented for general informational purposes only and does not constitute tax, legal or business advice. Any views expressed in this article may not necessarily be those of Nevada State Bank, a division of Zions Bancorporation, N.A. Member FDIC