Five Questions With: George Couto

George Couto, vice president at Rockland Trust, is program manager for Rockland Trust Leasing, a new division of the bank that provides equipment leasing for its commercial and small-business client base. / COURTESY ROCKLAND TRUST
George Couto, vice president at Rockland Trust, is program manager for Rockland Trust Leasing, a new division of the bank that provides equipment leasing for its commercial and small-business client base. / COURTESY ROCKLAND TRUST

George Couto, vice president at Rockland Trust, is program manager for Rockland Trust Leasing, a new division of the bank that provides equipment leasing for its commercial and small-business client base. Couto, who also manages the bank’s SBA loan program, talks with Providence Business News about the new program, market demand and why it’s unique.
PBN: Can you tell our readers a little bit about Rockland Trust Leasing?
COUTO:
Rockland Trust Leasing is a new service we offer to provide equipment leasing as a flexible financing alternative for commercial and small businesses. This new service provides a finance option that enables businesses to more effectively manage their cash flow and protect them from equipment obsolescence, as well as allow for upgrades or additional equipment as needed. Any of our commercial lending or small-business banking officers can talk about leasing to businesses that are interested in exploring this option.
PBN: What was the impetus behind starting this new service?
COUTO:
We looked at our customer relationships and saw a lot of opportunity for providing this service. We noticed that many of our business clients were leasing equipment, so we looked into ways we could enter that business. We felt that adding leasing to our menu of financial services for businesses would offer them another financing option and at the same time further strengthen our relationships with them.
PBN: How does it differ from more traditional business lending?
COUTO:
With leasing, a business can receive 100 percent financing at lower terms than with traditional financing options. There are many leasing options and structures we can provide, and the benefits of each may vary based on each customer’s unique financing requirements. For instance, if cash flow and monthly payment is the main concern, customers can take advantage of lower monthly payments for their equipment when a residual value is assumed by the lessor. Conversely, if customers want to retain ownership and keep the depreciation benefits for the equipment, a lease structure can be provided that allows them to keep ownership of the equipment at the end of the lease with the option to purchase. That also allows customers to keep the tax depreciation benefits. In addition, seasonal and step payment plans can be structured to meet a customer’s cash flow requirements.
PBN: Is there a demand for this type of lending? How about in the Rhode Island market specifically?
COUTO:
The leasing industry has continued to see steady growth year over year, and more and more customers are using lease financing for their equipment acquisitions. In 2015, equipment leasing represented $250 billion of the more than $1 trillion leasing and financing sector. When they hear ‘leasing,’ many people think of the traditional types of equipment that can be leased – like computers and other technology-related equipment, or rolling stock (trucks, vehicles, trains etc.). In fact, all industries and all equipment can enjoy the benefits of leasing – from manufacturing, medical and hospitality to construction, energy, franchises and distribution/warehousing. In Rhode Island we’re seeing opportunities in the construction and real estate development industry, manufacturing and medical, as well as in the hotel industry where we can offer leases for furniture and fixtures.
PBN: Why should business borrowers consider working with Rockland Trust over other lenders?
COUTO:
Because we will sit down with them and listen to what they need, rather than trying to push a product or service on them. In addition to leasing, we offer a lot of other financing options and our goal is to come up with the best solution to fit their needs.

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