Arvest division posts double-digit growth in 2011

Arvest Equipment Finance (AEF), a division of Arvest Bank, continued double-digit growth in 2011 as the total number of equipment finance companies decreased by 1%, according to an Arvest statement.

AEF’s 2011 net assets were up $46 million, up 62% compared to 2010, from the previous year for a record $121 million in loans and leases. New business volume was also up more than $47 million over 2010 to $76 million, up 160%. According to Arvest, the 2011 industry average where new business volume was up 25%

“Companies were careful during the recession to extend the life of their equipment by making repairs instead of purchasing new products, but after several years of repairs, many businesses simply could not afford to delay replacing old equipment any longer. This replacement cycle helped the substantial increase in business in 2011,” Kyle Gilliam, president of Arvest Equipment Finance, said in the statement.

He said in addition to AEF’s increase in business from the manufacturing and medical sectors, lease financing for county and municipal governments remained strong. “Multiple industries are looking to conserve their financial resources by seeking out available leasing and financing options.”

In June 2011, MonitorDaily ranked AEF 96th on the Monitor 100 list of the largest equipment finance and leasing companies in the United States in terms of 2010 assets.

Equipment leasing is a financing option available to businesses through a bank or leasing company as a means to fund needed equipment while still preserving existing lines of credit. Financing equipment through a lease, as opposed to a loan, provides flexibility in payment structures while preserving cash flow needed for day-to-day operations without requiring a down payment. In many circumstances it also provides tax benefits since leased equipment is not considered an asset.