Meet the New ELFA Members

While it’s not quite a “post-pandemic” era, a new normal is emerging in the equipment finance world. Offices are open, business travel has picked up and live events are back. Still, the landscape has changed. Remote and hybrid workplace models have increased. Companies are evaluating economic forecasts as they look at reinvestment for growth. New challenges, ranging from inflation pressures to supply chain issues, require creative thinking and solutions. ELFA is focused on helping members navigate these new challenges. And here are five of the newest companies to join the membership ranks:

MidCap Equipment Finance LLC

Launched in January, MidCap Equipment Finance LLC may be a newcomer as a company, but its leadership team is made up of seasoned professionals from major financial organizations. The company specializes in equipment leasing and lending to middle-market companies in the U.S. and Canada, joining forces with MidCap Business Credit LLC, which specializes in asset-based lending. “This product combination is a true differentiator in the marketplace and our goal is to provide a comprehensive financing solution to our customers,” says Saurin Shah, President of MidCap Equipment Finance. 

While MidCap Equipment Finance handles transactions between $2 million and $25 million, most are in the $3 million to $5 million range. Shah says the company fills an important gap in the market, since large ticket financing companies typically have a $15 million transaction minimum, and small ticket companies may “max out” at $3 million. “We’re finding companies that have stable cash flow and good financials who need someone who focuses on that mid-range deal size,” he says.

The company’s expertise in analyzing customers’ financial situations is particularly relevant now, Shah says. The pandemic has created a tumultuous period for many companies. Lockdowns, supply chain disruptions and other factors took their toll on some companies’ financials. Shah says the MidCap team understands these challenges and may find opportunities where other funding sources won’t. “We evaluate each opportunity that comes through on its own individual merits, then figure out if we’re comfortable doing the investment,” he says.

Shah says the community and networking opportunities ELFA offers are important to him, including events like the Funding Conference. The association helps him find contacts, keep up on the latest research and even refer business. “In my previous roles, we were always part of ELFA. It was a great way for us to connect with other leasing companies in our industry,” he says. “It’s an important part of being in this line of business.” 

FileInvite

Few industries deal with more sensitive documents and information than equipment leasing and finance companies. From company and individual financial information to tax documents, the information required to process funding deals must be handled with extreme care.

And that’s why document management platform FileInvite has joined the ranks of ELFA members, says Cindy Novak, FileInvite’s National Sales Manager. 

“We see too much confidential data being shared via email, which isn’t a secure way to send such information,” she says. “Our approach is very different. We’re trying to help companies get away from email and to a place where they’re digitizing and automating data securely while becoming more efficient.”

FileInvite allows users to request documents, signatures, files and data from clients in a secure, integrated platform, eliminating the time-consuming process of emailing documents back and forth. And, as cybersecurity concerns continue to grow, the platform also protects sensitive information in ways that email cannot, she says. 

“Companies of all sizes are at risk online. Cyber threats are getting more sophisticated, so companies need to be as vigilant as they can be when it comes to protecting customer data and their own systems,” Novak says. She says that one of FileInvite’s advantages is that it delivers a variety of individual solutions—“spokes”—within the product that can be added to a company’s existing systems to serve specific needs, such as creating templates and online forms, setting up customizable email and/or SMS notifications and more.

Novak sees her company’s ELFA membership as a resource for members who need to collect sensitive documents. “ELFA is so well-respected in the industry, and consistently provides necessary information and support to members. We want to be a part of that, too,” she says. 

Finloc

For more than 45 years, Finloc has been helping transportation-industry professionals from solo owner-operators to major fleets finance large equipment, with a specialization in trucks and trailers. With transaction sizes typically ranging from roughly $30,000 to $3 million, the company has seen the prices of these vehicles skyrocket during the pandemic, necessitating a new approach to its work with customers, says James Currier, the company’s Chief Revenue Officer of U.S. markets.

“The biggest challenge over the past couple of years is the rapid cost increase. We’ve had to figure out how to work with our customers and clients so they can continue to grow and not be strapped by equipment that costs often double what it did two years ago,” Currier says. 

Finloc is built on customer relationships, so the company has become somewhat of an advisor to its clients—an entity invested in their business success—rather than just a funding source. Currier and his team spend their days researching the economic factors that affect transportation companies so they can properly evaluate deals. As a result, they may see opportunities in the sector that less-experienced eyes may overlook. 

“We are very much relationship-based in everything we do, and we want to help our clients grow and prosper in what they do,” he says. “I think ELFA will be valuable in the relationships we will build and the resources that will help us help our clients.”

Currier is also enthusiastic about his work and wants to see the next generation of professionals seek out equipment leasing and financing as a career option. “I count myself very lucky every day to work in the transportation sector. I think it’s often overlooked and that more young people should consider working in this sector,” he says. “No two days are the same. No two customers are the same.” 

XCMG America Financial

One of ELFA’s newest members is also part of one of the biggest construction equipment companies in the world. XCMG America Financial is a captive finance division of XCMG, the world’s third largest construction equipment company, according to Yellow Table 2021 and 2022, which ranks the world’s top 50 such companies. XCMG is the highest-ranking company among Chinese manufacturers. 

XCMG entered the North American market roughly a decade ago and, last year, announced a big investment in the United States market. Part of that investment was establishing an XCMG captive finance company to provide financing and leasing solutions. XCMG American Financial was developed to help finance XCMG products bought by XCMG dealers and customers in the United States, says CEO Gengzong Qiu. Currently, the company’s primary focus is on residential and commercial construction equipment, but it has a number of lines of heavy-duty equipment for various industries, as well. The company partners with QuickFi® by Innovation Finance USA LLC which offers creditworthy borrowers unprecedented access to low-cost capital on the most modern client-accessible lending platform to help streamline financing.

ELFA has been an invaluable resource for economic data and helping his company track trends and developments in the market, such as consumer confidence, Qiu says. As an international company based in China, he says that ELFA’s research and data has helped him refine his strategy. In addition, he adds that fellow members have offered support as he has structured his U.S. team. “We have been getting a lot of support from the members,” he says. 

Qiu says he is looking forward to meeting up with some of those supportive members and meeting others at events like the Annual Convention and various networking events. He expects that ELFA will be an important resource as his company grows. 

Renasant Bank

New member Renasant Bank may be one of the southeast’s strongest financial institutions with $16.6 billion in assets under management, but its focus is very much that of a community bank. Today, Renasant Bank has 194 banking, lending, wealth management and financial services offices in Mississippi, Alabama, Tennessee, Georgia and Florida. “When you look at the communities we serve, we are right in the heart of SEC football territory,” quips John Willis, Senior Vice President and Senior Relationship Manager. 

Willis says that Renasant’s entire approach to business is based on serving the community and building relationships. The bank and its 10-year-old asset-based lending group work with a broad range of customers, approaching each in a solution-finding way rather than specializing in certain lines of business. “When a customer calls, it’s usually because we need to find a solution,” he says. “The more problems we solve, the more that endears you to the client.” A problem-solving mindset sets Renasant apart, he adds. 

While ABL is a newer part of the bank’s business, it’s a priority for Renasant. The bank originates traditional asset-based loans to borrowers in manufacturing, distribution and commercial services. In addition, a growing part of its business is comprised of lender finance relationships, such as equipment lessors and lenders, factors, rent-to-own businesses and others. The bank’s ABL market area extends beyond the bank’s footprint. 

Willis says he hopes that the organization’s ELFA membership will build and deepen relationships among colleagues, customers and prospects. “As an equipment lessor and lender, Renasant benefits from ELFA’s national advocacy as well as the professional education and networking opportunities the association provides,” Willis says.