1 00:00:05.500 --> 00:00:08.700 So I'm very excited today because today 2 00:00:08.500 --> 00:00:12.600 we're gonna be talking about a specific area of the alternative Finance 3 00:00:12.100 --> 00:00:15.200 industry and we have someone very special that's gonna walk 4 00:00:15.100 --> 00:00:18.700 us through just different topics regarding that industry. 5 00:00:18.100 --> 00:00:21.500 So go ahead and introduce yourself and your 6 00:00:21.100 --> 00:00:23.000 title and the company that you're with 7 00:00:26.400 --> 00:00:27.000 president of 8 00:00:28.200 --> 00:00:31.400 LLC, we're Bank owns company we're owned 9 00:00:31.200 --> 00:00:34.900 by Brookline Bank and we just celebrate our 25th 10 00:00:34.500 --> 00:00:38.100 anniversary last year the 25 years in the 11 00:00:37.700 --> 00:00:41.000 industry. Yes. So how did you get involved in 12 00:00:40.900 --> 00:00:44.500 this industry I get in in 2000. 13 00:00:44.100 --> 00:00:47.500 I started working. 14 00:00:47.100 --> 00:00:50.700 I got a power legal degree. I was 25 15 00:00:50.200 --> 00:00:53.700 years old with three children 16 00:00:53.300 --> 00:00:57.000 under five and I was on welfare and I went 17 00:00:56.500 --> 00:00:59.800 to a local college and got a party good degree in 18 months. 18 00:00:59.500 --> 00:01:03.100 And so I got a job at Fleet Healthcare, which 19 00:01:02.800 --> 00:01:06.700 is no longer around they were brought up a Bank of America in 2005, 20 00:01:06.100 --> 00:01:10.700 but I got a job there doing contracts and that's 21 00:01:09.700 --> 00:01:13.000 how it started the school sent me 22 00:01:12.900 --> 00:01:16.800 on an interview. I got the job completely accidental 23 00:01:16.000 --> 00:01:19.100 and it is now my passion. 24 00:01:20.200 --> 00:01:24.000 So let's talk about Eastern funding what exactly does Eastern funding 25 00:01:23.500 --> 00:01:26.900 do and kind of give us a brief walkthrough of the 26 00:01:26.700 --> 00:01:27.400 industry. 27 00:01:28.400 --> 00:01:31.300 Well Eastern funding, I guess it's been around for 25 years it was. 28 00:01:31.700 --> 00:01:35.100 Founded by Michael fanger and Brian Grau who are 29 00:01:34.700 --> 00:01:38.100 both still part of the organization and when we 30 00:01:37.900 --> 00:01:42.200 when they started the company it was primarily with financing coin 31 00:01:41.900 --> 00:01:45.800 laundry in dry cleaning Ensemble Vegas. 32 00:01:46.500 --> 00:01:50.400 We have since evolved a bit. We no longer Finance 33 00:01:49.500 --> 00:01:52.700 dry cleaning but coin laundry is about 34 00:01:52.600 --> 00:01:56.500 80% of our portfolio. Excuse me. We also finance 35 00:01:55.700 --> 00:01:59.300 car washes. We still Finance bodegas. 36 00:01:59.900 --> 00:02:03.500 We do some commercial real estate financing primarily 37 00:02:03.200 --> 00:02:07.700 to for customers who have who 38 00:02:07.200 --> 00:02:10.400 are within our industry, but we also have two other 39 00:02:10.300 --> 00:02:13.700 business lines one of which is specialty vehicles 40 00:02:13.400 --> 00:02:16.900 and then we most recently acquired a company 41 00:02:16.700 --> 00:02:20.500 that finances fitness equipment. So those 42 00:02:20.000 --> 00:02:23.100 are our expertise. So if we 43 00:02:23.000 --> 00:02:26.200 want to get even more specific into the equipment what type of 44 00:02:26.200 --> 00:02:29.300 equipment would you guys say you guys specifically Finance if 45 00:02:29.200 --> 00:02:33.000 you can give us a brief breakdown of that so we Finance everything 46 00:02:32.600 --> 00:02:35.900 from the carts in the coin laundry to 47 00:02:35.600 --> 00:02:39.500 the big gigantic, you know machines then 48 00:02:38.700 --> 00:02:42.200 when I talk about car washes we're talking about, you 49 00:02:41.800 --> 00:02:45.500 know, the car wash an Express Car Wash smaller or 50 00:02:45.300 --> 00:02:49.000 the bigger ones with the big tunnels. We're all 51 00:02:48.700 --> 00:02:52.800 talking about, you know, like I said tow trucks and those 52 00:02:52.600 --> 00:02:55.700 types of vehicles, but then also when we're talking 53 00:02:55.700 --> 00:02:59.200 about fitness equipment, we're talking about, you know, the treadmills and 54 00:02:59.100 --> 00:02:59.700 all the machines. 55 00:02:59.900 --> 00:03:00.900 That's a lot. So 56 00:03:02.000 --> 00:03:05.100 your company specifically it's huge in the equipment 57 00:03:05.000 --> 00:03:08.300 financing world. So the main question is 58 00:03:08.100 --> 00:03:10.200 how do customers find you guys? 59 00:03:11.700 --> 00:03:15.100 Well, we are very fortunate in that we are 60 00:03:14.700 --> 00:03:18.200 65% reply customers and I 61 00:03:18.000 --> 00:03:21.200 will tell you that that's completely 100% based on 62 00:03:21.200 --> 00:03:24.800 relationships. We are you know, 63 00:03:24.800 --> 00:03:29.100 our our salespeople are not just salespeople. They're 64 00:03:28.000 --> 00:03:31.500 people's they become family to our 65 00:03:31.300 --> 00:03:34.800 customers. We have generations of customers where 66 00:03:34.500 --> 00:03:38.200 we Finance the first coin laundry for the parents and 67 00:03:37.500 --> 00:03:41.000 now their children are getting into the business now, 68 00:03:40.500 --> 00:03:44.400 we're financing their children's businesses. So it's really really 69 00:03:43.700 --> 00:03:46.800 a lot of it is based on, 70 00:03:46.700 --> 00:03:50.100 you know, the relationships we have with our customers our 71 00:03:49.800 --> 00:03:54.000 borrowers. So let's talk about the importance of building 72 00:03:52.800 --> 00:03:56.300 a relationship with a client making sure 73 00:03:56.000 --> 00:03:59.400 that they become like family so you 74 00:03:59.100 --> 00:04:02.600 can build up this network of repeat customers 75 00:04:02.100 --> 00:04:06.000 over and over and over again because that's what's 76 00:04:05.300 --> 00:04:08.700 Driven you guys to be this successful in this 77 00:04:08.400 --> 00:04:10.900 industry. So how do you build that? 78 00:04:11.800 --> 00:04:16.600 Well, I'd say that it's a combination of our salespeople 79 00:04:15.400 --> 00:04:18.600 are experts, right so they're not 80 00:04:18.400 --> 00:04:21.900 selling just different types of loans or 81 00:04:21.500 --> 00:04:25.400 leases. There are part of what they do for 82 00:04:25.000 --> 00:04:29.300 their customers is they become advisors sort 83 00:04:28.900 --> 00:04:32.800 of right someone that you can trust and talk 84 00:04:32.100 --> 00:04:35.500 to about you know, is this a 85 00:04:35.400 --> 00:04:39.700 good idea is this a good location and have real honest conversations. They're 86 00:04:38.600 --> 00:04:42.000 all experts within their area and I 87 00:04:41.800 --> 00:04:45.300 think also there really believe in what they're doing. They're really 88 00:04:45.100 --> 00:04:48.400 passionate. They don't want to this is not about just selling 89 00:04:48.300 --> 00:04:51.900 a product moving on to the next loan. They're really 90 00:04:51.400 --> 00:04:55.400 care. They know people's families. They're they're invited 91 00:04:54.400 --> 00:04:58.100 to weddings like their relationships Run 92 00:04:57.400 --> 00:05:00.700 Deep. And so I think that that's part 93 00:05:00.500 --> 00:05:03.700 of it also though, you know, look at our 94 00:05:03.600 --> 00:05:07.600 our customer base. Our customer base is very diverse. And 95 00:05:06.700 --> 00:05:10.900 we as a company are 63% minorities 96 00:05:10.100 --> 00:05:11.500 and 97 00:05:11.900 --> 00:05:15.500 think that one of our secrets is that we give 98 00:05:15.000 --> 00:05:15.800 people 99 00:05:17.000 --> 00:05:17.800 a safe place 100 00:05:18.600 --> 00:05:22.000 they you know, when you're a minority and you 101 00:05:21.600 --> 00:05:25.100 interact with people whether they're same ethnic group or different ethnic 102 00:05:24.700 --> 00:05:28.200 group or whatever. It may be but you see that there's it is 103 00:05:28.000 --> 00:05:31.300 an organization the values you as a person. 104 00:05:32.500 --> 00:05:36.200 Then you tend to want to continue those types of relationships with 105 00:05:36.000 --> 00:05:39.100 them. So talk to us about how big it is 106 00:05:39.000 --> 00:05:42.600 to get a referral. How do you get a referral in this industry? We do 107 00:05:42.300 --> 00:05:45.600 use Brokers on occasion most the people 108 00:05:45.300 --> 00:05:48.800 that we've been doing business with for very very very long 109 00:05:48.400 --> 00:05:52.100 time. And there's a lot of trust and loyalty 110 00:05:51.500 --> 00:05:55.000 but I think our referral 111 00:05:54.700 --> 00:05:58.800 source is is really mostly our borrowers who've 112 00:05:57.700 --> 00:06:01.600 had great experiences. And then also the 113 00:06:01.300 --> 00:06:04.700 vendors who have had great experiences and understand that 114 00:06:04.400 --> 00:06:07.700 we will prioritize them and they're equally as 115 00:06:07.400 --> 00:06:11.000 valuable to us as our customers are how important 116 00:06:10.600 --> 00:06:14.200 is it to create an environment where these workers 117 00:06:13.800 --> 00:06:17.200 number one stay here this long and also build 118 00:06:16.900 --> 00:06:20.200 that type of relationship kind of walk me through how important that 119 00:06:20.000 --> 00:06:21.800 is to balance out. 120 00:06:22.700 --> 00:06:25.800 But it's what you in terms 121 00:06:25.700 --> 00:06:28.900 of longevity and employees. That's critical. For example, 122 00:06:28.700 --> 00:06:32.300 I've been here 18 years Michael fanger 123 00:06:31.900 --> 00:06:35.300 who started the company the founder and Brian been here 124 00:06:35.200 --> 00:06:38.800 20-something years, right? We have employees have been here 15 125 00:06:38.200 --> 00:06:42.400 20 years. So let's talk about an 126 00:06:41.300 --> 00:06:45.200 application process simple application process here at 127 00:06:44.800 --> 00:06:47.900 Eastern funding from start to finish. What does that look like? How long 128 00:06:47.800 --> 00:06:51.200 does it take to close and kind of walk us through the process? Typically the 129 00:06:51.000 --> 00:06:52.100 way it works is 130 00:06:53.100 --> 00:06:56.400 For example, we have an electric electronic app on our website so 131 00:06:56.200 --> 00:06:57.700 you can apply right on our website. 132 00:06:58.700 --> 00:07:02.000 And receive that application and either comes in 133 00:07:01.900 --> 00:07:05.900 house or like I said a large a number 134 00:07:05.600 --> 00:07:08.700 of our referrals come through vendors since it would either 135 00:07:08.600 --> 00:07:11.900 be someone that goes into a vendor and says I want equipment and then 136 00:07:11.700 --> 00:07:14.800 it gives a handmar application or they go online 137 00:07:14.700 --> 00:07:18.100 they found the find us and apply online. Once we 138 00:07:18.000 --> 00:07:19.900 have that application in-house we've 139 00:07:20.300 --> 00:07:25.600 Focused a lot on having a very robust system 140 00:07:23.800 --> 00:07:27.500 in terms of technology. So we 141 00:07:27.200 --> 00:07:30.400 have a lot of Automation and then go through on the writing and 142 00:07:30.300 --> 00:07:33.500 it depends on the size of the transaction whether one person 143 00:07:33.300 --> 00:07:37.200 can approve it. Our credit committee can improve it or it has 144 00:07:37.100 --> 00:07:40.300 to go to the bank for approval right? Because we are bank owned company 145 00:07:40.200 --> 00:07:43.500 and there's a lot of compliance that we still have to adhere to 146 00:07:43.200 --> 00:07:46.500 everyone wants to kind of start diversifying. 147 00:07:47.200 --> 00:07:50.400 What would you say to a broker that hasn't really worked an 148 00:07:50.200 --> 00:07:54.500 equipment financing and has worked with like unsecured working 149 00:07:53.300 --> 00:07:55.100 capital? 150 00:07:56.100 --> 00:07:59.600 And now they're diving into human financing. They're discovering. This 151 00:07:59.400 --> 00:08:02.100 is trying to work this what advice would you give to them? 152 00:08:03.000 --> 00:08:06.300 Well, I would say someone getting in you really have to study and you 153 00:08:06.200 --> 00:08:06.600 have to 154 00:08:07.700 --> 00:08:11.600 Understand the equipment that your financing the needs 155 00:08:11.400 --> 00:08:14.500 of your customer also the type 156 00:08:14.400 --> 00:08:18.000 of customer you have right? It's is it a small business or is 157 00:08:17.700 --> 00:08:21.400 it, you know, a larger public company 158 00:08:20.700 --> 00:08:24.000 that your financing is it a non-for-profit and 159 00:08:23.700 --> 00:08:28.700 so you have to understand all those different variables before 160 00:08:27.300 --> 00:08:31.100 before you can you 161 00:08:30.500 --> 00:08:34.400 know, really take a risk and and then determine 162 00:08:33.900 --> 00:08:37.400 how risky do you want to be in terms 163 00:08:37.000 --> 00:08:37.400 of? 164 00:08:38.400 --> 00:08:42.300 You know because unsecured is very risky. So but you 165 00:08:41.900 --> 00:08:46.200 know, if you're gonna make a larger transaction you want to make sure you understand do I 166 00:08:45.700 --> 00:08:49.300 do I need what's my collateral? What does it look like? Is it 167 00:08:48.900 --> 00:08:52.500 moving collateral? Is it collateral? You know, for example 168 00:08:52.300 --> 00:08:55.900 a car wash once you have a tunnel in there, you can't 169 00:08:55.600 --> 00:08:58.600 remove the tunnel. So is this do I have 170 00:08:58.600 --> 00:09:01.800 the documentation in place for me to be able to say oh 171 00:09:01.600 --> 00:09:05.400 I can bring someone else to run that business. Yeah or something 172 00:09:05.100 --> 00:09:08.800 on that nature. So you really need to understand what you're doing so 173 00:09:08.100 --> 00:09:09.700 can weighing it? 174 00:09:10.400 --> 00:09:13.600 In order to become an expert and not wing 175 00:09:13.400 --> 00:09:13.700 it. 176 00:09:14.700 --> 00:09:18.100 What would you say for someone that's that's getting in learning. What would 177 00:09:17.800 --> 00:09:20.600 you say is the timeline for them to become an expert? 178 00:09:21.400 --> 00:09:24.400 Oh, well, I mean depends out 179 00:09:24.400 --> 00:09:27.700 quick of a study you are how much time you devoted I would say. I always 180 00:09:27.400 --> 00:09:28.500 feel like 181 00:09:29.600 --> 00:09:32.700 Well with it's funny because with employees always tell them for a year. 182 00:09:32.700 --> 00:09:35.900 You're new in my eyes. You're new for a year because there's so much to learn 183 00:09:35.900 --> 00:09:39.500 even within this organization. So I would 184 00:09:38.900 --> 00:09:42.000 say you need at least five years to be 185 00:09:42.000 --> 00:09:45.300 an expert at least five years. Yes, minimally five years 186 00:09:45.100 --> 00:09:48.700 and I say minimally 187 00:09:48.200 --> 00:09:52.000 because it you have there's so many different aspects 188 00:09:51.300 --> 00:09:55.500 to lending everything from the documentation, you 189 00:09:54.500 --> 00:09:57.700 know, your documentation determines whether you go 190 00:09:57.700 --> 00:10:01.600 to litigate or not how you collect can you collect, you 191 00:10:00.900 --> 00:10:04.200 know, everything from customer service understanding how to 192 00:10:04.000 --> 00:10:07.400 provide customer service on their writing is critical 193 00:10:07.100 --> 00:10:10.600 if you don't understand your equipment and your collateral and 194 00:10:10.300 --> 00:10:13.800 your customer, you can't underwrite a transaction and really understand 195 00:10:13.500 --> 00:10:17.300 the risk that you're taking what impacts have you seen and 196 00:10:16.600 --> 00:10:19.900 what changes if people had to do because of things like 197 00:10:19.700 --> 00:10:23.300 inflation and because of the way the economy is today. 198 00:10:24.600 --> 00:10:25.300 Well again. 199 00:10:26.800 --> 00:10:29.000 it's we look at equipment Finance as 200 00:10:30.300 --> 00:10:33.500 Global thing but it's really segmented right because 201 00:10:33.300 --> 00:10:36.800 for example if you financing planes is a very different experience than if 202 00:10:36.600 --> 00:10:41.700 you financing computers or phone systems or copiers and 203 00:10:40.200 --> 00:10:44.100 so inflation impacts every 204 00:10:43.700 --> 00:10:47.100 industry differently and that's why our relationships come in right? That's 205 00:10:47.000 --> 00:10:50.600 where what makes that separates us from our competition. Is 206 00:10:50.100 --> 00:10:53.300 there our salespeople are able to have 207 00:10:53.100 --> 00:10:56.500 conversations with our customer around how you be impacted 208 00:10:56.100 --> 00:10:59.600 by the change of cost of living right everything 209 00:10:59.200 --> 00:11:03.800 from the utilities the equipment costs the increasing 210 00:11:03.600 --> 00:11:07.600 rates all these things impact the customers' 211 00:11:06.600 --> 00:11:10.100 ability to pay their loan. What 212 00:11:09.900 --> 00:11:13.500 we want is long-term success for our customer 213 00:11:13.200 --> 00:11:16.400 right for us. It's not just selling this one product. It's not 214 00:11:16.200 --> 00:11:19.700 just the bottom line is the entire impact is 215 00:11:19.200 --> 00:11:22.400 we want long lasting relationships. That's what 216 00:11:22.200 --> 00:11:25.700 we're 65% repeat customers people need that 217 00:11:25.500 --> 00:11:29.100 and want that. So that's really really what 218 00:11:28.500 --> 00:11:30.000 makes Eastern funding. 219 00:11:30.400 --> 00:11:33.500 An amazing place to do business with and to work 220 00:11:33.400 --> 00:11:36.900 for so when Nancy thank you so much for your time and for 221 00:11:36.600 --> 00:11:40.100 chatting with us regarding Eastern funding and Equipment financing because 222 00:11:40.000 --> 00:11:43.300 I know that the knowledge you shared with us people are gonna take it and 223 00:11:43.100 --> 00:11:44.900 they're gonna run with it. So, thank you so much. 224 00:11:45.800 --> 00:11:47.200 He's been a pleasure. Thank you.