BFINS and ECA Provide Foundation Industry Expertise in Equipment Financing

May 23, 2024

Anja F blog photo

By Matt Shelley – ECA Content Marketing Manager

In the bustling world of business, whether it’ a small mom-and-pop contractor or a major foundation and piling corporation, the need for financing equipment is a constant. Bauer Financial Services (BFINS) and Equipment Corporation of America (ECA) are dedicated to ensuring that foundation construction professionals have a streamlined process for financing equipment that is tailored to each customer’s unique needs.

Every year, businesses, nonprofits and government agencies in the US invest a staggering $2 trillion in plants, equipment and software, with around 60% of this investment being financed through loans, leases and lines of credit. Captive leasing companies like BFINS play a crucial role in this landscape, covering over 30% of the market share, but why is it essential that equipment financing is supported by the dealer?

Convenience is key in today’s fast-paced world. Customers increasingly seek a one-stop-shop experience, where equipment, tooling, service and financing are all available under one roof. BFINS understands this demand for seamless integration, offering customized solutions tailored to individual business needs rather than off-the-shelf products. For dealers, the sale isn’t complete until the funds are received, and knowing when funds will be available is vital in managing cash flow.

However, navigating the financing landscape can be daunting for customers. Banks often lack a deep understanding of specific equipment and industries, resorting to a one-size-fits-all approach. This can lead to frustration and confusion for customers, like speaking two different languages in a conversation without a translator. Another consideration is that house banks typically have a line of credit and therefore a security interest in all the customer’s assets, and often these loans require down payments or personal guarantees. These are all major obstacles when you need to make an equipment purchase. This is where BFINS shines.

As a captive leasing company owned by Bauer Equipment America, the BFINS team of experts is well-versed in both the construction and financing industries. They make the financing process easy and smooth for both sides with their in-depth knowledge, ensuring a seamless customer experience. From lease and loan structures to financing soft costs and managing asset swaps, BFINS offers comprehensive solutions tailored to each customer's requirements.

At the heart of BFINS's success lies its dedicated team, led by CEO Anja Frazier. With a customer-centric approach, BFINS ensures that customers feel valued and supported throughout the financing process and beyond. By building trust and understanding each customer's unique story, BFINS fosters long-term partnerships that extend far beyond a single transaction.

“The BFINS team is an expert in the construction financing industry,” Frazier said. “We speak both languages and are making the process easy and smooth for both sides in a deal. We know what is negotiable with lenders, what is important for customers in our industry and how we can deliver the greatest benefits to our customers.”

Maylor Foundation Contractors, a young, successful company in business for five years, faced a significant hurdle when they decided to purchase their first Klemm rig. John Taylor, the owner of Maylor Foundation Contractors, had been in the foundation construction industry for 17 years

when he founded Maylor, a company with a focus on shoring walls and anchors to support H-piles or sheet piles.

“Being a smaller company, we wanted a machine with a wide range of capabilities,” Taylor said. “We can’t always have specialized machines for each job. We need a versatile rig that can do several things, and that’s what the KLEMM gave us.”

ECA account manager Rob Likens, who had kept in touch and followed John’s career, knew that Maylor was in the market for an anchor-drilling rig and began discussing the KLEMM product line with John and the Maylor team. After weeks of consultation with the experts at KLEMM— Martin Bonzel and Joanne Mueller— Maylor found a unique KLEMM rig, purpose-built for the young company’s loaded schedule.

“We worked with John to come up with the best rig for his needs,” Likens said. “He’s got a lot of options with that machine. Once we reached that point, I just threw in, ‘hey by the way, we offer financing too!”

Likens said Frazier and BFINS have been a huge boon to his customers in Florida, and not just with Bauer purchases. The team at Bauer Financial Services has financed everything from diesel hammers to fleet equipment for ECA customers.

Despite initial doubts about Maylor’s eligibility for financing because it was such a young company, BFINS dove deep into Maylor's financials, asking probing questions to fully understand their business. With BFINS's guidance, Maylor not only secured financing for the Klemm rig but also expanded their investment to include an attachment for an excavator. By going the extra mile, BFINS enabled Maylor to take advantage of lucrative opportunities and grow their business.

“Working with Anja was great,” Taylor said. “As a small company, she wasn’t judgmental at all and never made you feel like you were too small.”

Taylor shared the frustration of working with financial institutions that either don’t understand the foundation construction industry or simply did not believe in the value of the company based on how long it had been in business.

“A lot of times, if you’re not a big company, they’ll turn their nose up at you. They would literally smirk and basically say you’re not worth anything and I took that very personally,” Taylor said. “Anja was the exact opposite of that. She really knows the industry, and she really made it easy. I was very happy with the deal we got. It was honestly the best financial experience I’ve ever had.”

Key to the KLEMM
ECA's Rob Likens and Maylor's John Taylor celebrate Maylor's new KLEMM rig with a key ceremony dinner.

Despite initial skepticism and hurdles, BFINS's innovative approach to financing has proven successful time and time again. By serving as the intermediary between customers and lenders, BFINS bridges the gap, ensuring clear communication and understanding on both sides. This dedication to excellence has not only earned the trust of lenders but also the gratitude and loyalty of customers. Frazier said there are a few things to keep in mind when assessing equipment financing options. What is the expected cash-flow out of the current backlog and how quickly do I want to repay the equipment cost? Monthly payments and interest rate along with early termination options, collaterals and guarantees, are all things to consider when thinking about your financing options. In an environment with daily fluctuating interest rates, a small difference in the

interest rates can have a significant impact on the monthly payment for deals closer to $1 million and up. Another question to ask is ‘what is my tax appetite?’ A shorter lease with a high monthly payment could reduce taxable income rather than taking the long-term route and standard depreciation. Finally, would going with a small ticket program be a good option? A small ticket program allows for a quick credit decision up to $500,000 without sharing any financial statements.

“We are selling solutions that match the customer’s need, and when needed we created new financing products to achieve this. We don’t stop just because it wasn’t done before.” Frazier said. “Putting the customer front and center and making them the most important part of the transaction builds trust, security and comfort. We are a long-term partner for the customer. We know their story and the customer does not have to start from zero every time they purchase or finance a new piece of equipment.”

BFINS and ECA believe a customer-focused approach, coupled with industry expertise and innovative solutions, can simplify the equipment financing process. By putting customers first and offering tailored solutions, BFINS and ECA ensure that businesses of all sizes can access the equipment they need to thrive and grow.

This article originally appeared in the May 2024 issue of GeoDrilling International.