In this episode I am joined by Garry Bartecki of GB Financial services and also the cover story author of the September 2020 issue of Material Handling Wholesaler. Garry and I discuss the world of dealership finance as we get into the current state of finance due to COVID, financing vs. leasing vs. renting and how operations can work with their dealers to save some money during slower times.
- Garry has been involved in the financing world for over 40 years working with dealers in multiple different ways. In those 40 years there has never been anything quite like what has happened in the last few months during the pandemic. Garry discusses what the current climate looks like in financing which includes banks being more strict with loans. He mentions even companies that are in good standing are getting put under the microscope for new financing. This has lead to a shift into renting over financing.
- Rentals are on the rise as there is so much change going on in their current environment. Garry’s guidance is to rent for the current need and then send back the equipment when it is not needed any more. This allows for more flexibility and also keeps you from any long term commitment that may hurt you in a slower business period. He also recommends taking a look at all your current agreements and discussing with dealers if there are any potential changes to the terms that could be beneficial to you.
- During the current times, Garry suggests taking a close look at all of your current equipment and what costs are associated with them. He says to prepare for the long haul and not to take on any additional debt through leasing or financing which is why he favors renting. Additionally, he suggests looking at options for your lift trucks that may reduce overall costs like switching to lithium ion batteries. Overall, taking a magnifying glass to your costs right now is the way to protect your balance sheet and help you get through tougher times.
Listen to the full episode below and let us know what you’ve done to save on costs in the comments below.
Read the full cover story at Material Handling Wholesaler’s website here.
Connect with Garry on LinkedIn here.