By Tom Reilly, President of Construction Equipment Specialty Financing at 1st Source Bank

When supply chains are strained, agility becomes a contractor’s most valuable asset. The ability to act quickly—especially when equipment is scarce—can make or break a project. At 1st Source Bank, we’ve built our financing strategies to support this need for agility, ensuring our clients are always ready with pre-approved credit limits that allow them to move faster than the competition.

The Lessons of Supply Chain Disruptions

The COVID-19 pandemic severely disrupted global supply chains. Equipment manufacturers faced shortages of key components like microchips, leading to reduced inventory levels and skyrocketing demand. Contractors found themselves competing for limited machinery, and many missed out on crucial opportunities due to financing delays.

Our response was simple but effective: anticipate the need. By pre-approving credit limits, we gave our clients the ability to act immediately when equipment became available. These pre-approved limits meant our clients weren’t caught in the scramble for financing after finding equipment—they were ready to act the moment it hit the market. In some cases, contractors were able to finalize purchases within a single business day.

This strategy wasn’t just a reaction to supply chain issues—it’s our way to ensure our clients are always prepared, no matter the market conditions. Pre-approvals have become an invaluable tool for building supply chain resilience and by being prepared instead of reacting, we were able to help our clients seize crucial opportunities for their businesses.

Planning for the Future

As the construction industry continues to recover, the need for proactive financing strategies remains clear. Federal infrastructure projects, driven by the $1.2 trillion infrastructure bill, are creating unprecedented opportunities for contractors. To capitalize on these opportunities, contractors need to be equipped with the right machinery—on time and at the right price.

Pre-approved credit limits, paired with rapid-response financing solutions, are crucial strategies for staying prepared. Contractors who want to thrive in this competitive environment must stay ready to act quickly and decisively. At 1st Source Bank, we’re committed to providing the tools they need to do just that.

The disruptions of the past few years have underscored one key takeaway: Resilience is built through preparation. By embracing proactive financing, contractors can safeguard their operations and seize opportunities, even in volatile markets. As we look ahead, 1st Source Bank remains focused on empowering our clients with the flexibility they need to succeed in the long term.

Key Takeaways:

  • Pre-approving credit limits allows contractors to act quickly in the face of equipment shortages and seize market opportunities.
  • Supply chain disruptions have reinforced the need for quick-turnaround financing, ensuring contractors don’t miss out on crucial equipment.
  • As the construction industry continues to grow, particularly with the infrastructure boom, being financially prepared will remain key to success.

Tom Reilly
President, Construction Equipment Financing Division
Specialty Finance Group of 1st Source Bank

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