A group of about 25 students at The Ohio State University chapter of Delta Sigma Pi, a national business fraternity, learned about the equipment finance industry and lease accounting changes recently in a guest lecture by Key Equipment Finance's Peter K. Bullen, senior vice president - bank channel, and Chad Owens, vice president.
Utilizing the Guest Lecture Series from the Equipment Leasing & Finance Foundation, Bullen and Owens provided students with an overview of the $1 trillion equipment finance industry, including that each year American businesses, nonprofits and government agencies invest more than $1.584 trillion in capital goods and software (excluding real estate).
The key aspect to understand about equipment finance? It is one of the most important ways for businesses to invest in equipment while managing their balance sheets, taxes and cash flow.
Bullen and Owens also provided a description of:
- who uses equipment finance and why;
- small, middle and large-market segments; and,
- the reasons why businesses would want to finance equipment.
They also described Key Equipment Finance’s market profile, noting it is one of the top 5 segment leaders for U.S. bank affiliates, and its business channels, which include the Bank Channel, Key Government Finance, Manufacturer and Vendor Alliances, and Specialty Finance.
Students also learned about the lease accounting changes that take effect in 2019 for public companies and a year later for private firms, including core concepts that remain in place, changes from current guidance, and a breakdown of benefits and considerations of the new rules.