Full Faith And Credit: Helping job shops invest in new machines is a good investment

摘要

One of the problems facing smaller manufacturing companies and job shops right now is the crunch in new equipment financing. Many banks are reluctant to offer loans to buy new machine tools and other capital equipment. Other banks and lending institutions, however, are taking a different view. They are eager to expand as lenders to an important niche market. The difference seems to hinge on how well the bank understands the needs of these particular customers. This became clear when I discussed this issue with an executive at a bank that is currently expanding its specialty lending division dedicated to financing machine tools, molding machines and other production equipment. The executive, John VanDaele, is head of this division at the Banterra Bank, based in Marion, Illinois. John says that, although not one of the giants, this well capitalized and profitable bank is looking to develop markets underserved by more traditional lenders.