THE CASE FOR BANKERS

Over the past year, many bank-owned leasing groups have shifted from an emphasis on growth to selecting tactics for survival in today�s market. As a result, in recent months some banks have even closed their leasing companies or exited the market entirely. Based on extensive experience in banking and equipment finance, Bank Lease Advisors has demonstrated that a leasing product IS a relevant and necessary core OFFERING of the commercial banker. Bank Lease Advisors have helped establish deposit generation as well as other cross-sell relationships. Successful relationships were built in specialty sectors like healthcare, energy and municipal financing, allowing savvy bankers, financial advisors and equipment leasing professionals to partner up, maintain and indeed establish long term client relationships. With capital scarce and banks pursuing cost cuts, the leasing partnership is a critical tool. It has inherent ability to strengthen existing bank and financial advisor client relationships as well as to generate new ones.

How?

�Generate deposits. For example, if a "new business" healthcare client wishes to establish a relationship that begins with some component of equipment acquisition financing, the alternative to turning them away is to bring in the bank�s Lease Advisor to partner in capturing the relationship. Also, even though many Financial Advisors' clients reside outside the bank�s footprint, Remote Deposit Capture technology now makes it possible for Lessors to ask for deposits. And, given the increased difficulty of getting credit, borrowers are increasingly willing to provide deposits in order to obtain financing.

�Partnering with a Banker. Bank Lease Advisors have focused on the Commercial Banker as its client and, in effect, a wholesaler of its services. By partnering with the banker, Bank Lease Advisors have increased relationship profitability by assisting with generation of additional fee income as well as reduce risk through careful deal structure, source diversification and collateral knowledge.

�Originate new bank relationships. Even when Bank Lease Advisors operated outside the bank�s footprint, opportunity exists to identify potential new banking relationships, both commercial and retail, particularly among end-customers of vendor relationships. When operating within the bank footprint, Bank Lease Advisors can identify bank-only clients, provide warm leads for its commercial bank partners, and join on an introductory call.

Bank Lease Advisors can be more important than ever to its partners in the Commercial Bank and Financial Advisor divisions. Its ability to capture new opportunity makes the partnership important to bank profitability. In addition, the value of leasing products to clients (for example, lower payments and less upfront cash) creates a strong additional hook to retain the client in the bank.

Bank Lease Advisors works hard to increase the commercial banking division�s value to the bank franchise and even harder to communicate that value to bank management. Failure to do so will threaten the long-term viability of the Commercial Banking Sector and it�s client relationships.