A Sense of Purpose Amid the Chaos

The Great Recession

I was at a bank conference when my phone started to vibrate non-stop as the first barrage of information about the housing collapse, subprime mortgages and failures of “Too Big to Fail” banks came rushing in. Over the next few years, I recall numerous cocktail parties where I’d be asked what I did for a living. “Financial Services” was always the answer. Who wanted to admit to working at a bank—even a bank as above the fray as U.S. Bank was? It just wasn’t a great conversation starter. Whether we agreed with it or not, let’s face it—we were seen as the bad guys. In the movie of life called the Great Global Recession that played out over the next few years, we were the villains, the Darth Vader of the economy.

Covid Pandemic

Again, I was at a conference, this time to meet investors for Dext’s first ABS issuance, when the first news of the Covid-19 virus started to circulate. This time my phone wasn’t blowing up. Instead, it was a slow ripple of information and speculation. A month later, we were locking down as a country, figuring out how to use Zoom, fighting over toilet paper and sanitizers, and wondering what the new world would look like. Businesses were closing down without any idea when or if they’d be able to re-open. The economy suffered its greatest crash ever. Out of the ashes emerged unlikely heroes. The government stepped forward with the largest stimulus ever to offset business losses, support those who lost jobs, and direct funds to industries that needed it most. Equipment lessors gave generous lease modifications to companies in order to keep them afloat and ultimately help them get back on their feet. The OCC gave capital leeway to banks to not risk rate down credits who suffered from the pandemic, saving them from having to sell assets or take harsher positions with their clients.

Dext, An Independent’s Covid Story

Dext was a little over a year into our journey as a new company and found ourselves, like everyone else, needing to make decisions when everything was still unknown. As a new CEO, I had a responsibility to reassure the team with daily updates and to make sure our company continued to thrive. I spent countless hours each day calling my peers in the industry, watching industry webcasts, streaming relevant podcasts, and reading every article that I could find. As a small company, we didn’t have the luxury to wait. We had to see through the fog and make smart decisions to set us apart. 

As a healthcare focused lender, our team of veterans had unwavering confidence in the healthcare community’s resilience, a conviction grounded in deep industry knowledge. We were also thankful for the work of the true heroes of the Covid pandemic—the front-line healthcare workers who cared for the Covid patients and the scientists who worked tirelessly to create and test the vaccine. We felt it was our duty as an independent lessor with uninterrupted access to capital, to support the work of these heroes and I’m proud to say that Dext was not alone in our commitment to help. In response, Dext adjusted its thinking to address the most immediate needs, including delivering short-term rental options for ventilators for hospitals without the capital budget. We managed risk, structured loans and moved quickly to provide capital—sometimes overnight—to underserved healthcare providers and helped manufacturers to continue selling. There were undoubtably times of uncertainty. However, amid the chaos, there was a sense of purpose. So, as you sit back to enjoy that summer barbeque, know that in this movie sequel, we weren’t just spectators. For once, like so many others in our industry, we were the “good guys.”