Speaker: More banks are eager to make loans

By Bill Bregar
Senior Staff Reporter

Published: March 12, 2014 1:14 pm ET
Updated: March 12, 2014 1:17 pm ET

Related to this story

Topics Plastics News Executive Forum

WESLEY CHAPEL, FLA. — Two Executive Forum speakers addressed the big-money issues of lending money from banks and the research and development tax credit.

Plastics companies can take advantage of low interest rates and banks more eager to make loans in the current financial environment, said George Muhoray, business development manager for the plastics and packaging group at EverBank Commercial Finance Inc. in Hampton, N.H.

“Gain an appreciation of the economic developments. What things are affecting [the banks] that are ultimately going to affect you?” he said during the Plastics News event in Wesley Chapel Feb. 23-26. “Armed with a strategy, armed with the information, take on the banker. Push him.”

The banking sector has changed. Muhoray said many small community banks have disappeared. Even so, big banks have lots of competition, from new sources of lending. And the big banks, now back on solid financial ground are loosening up credit terms. They have money to spend, he said.

“Every day we’re out there, we see lower rates and more flexible lending, Muhoray said.

One potential negative: Lower profits for banks could lead to higher-risk loan portfolios — the recipe that helped lead to the recession, he said.

“This is the time to challenge. This is the time to push them,” Muhoray said.

Michael Devereux II said many activities can fall under the federal R&D tax credit, including costs for prototyping and mold development and adjustments, new automation and specialized equipment and work cells.

“You guys are doing qualified research activities. It’s not just beakers and lab coats. It happens out on the plant floor, and it happens in the boardroom where you discussing ways you can go,” he said.

The credit covers qualified wages of people used for planning conferences, research, Production Part Approval Process (PPAP), quality improvements, shop floor experimentation and more, Devereux said.

Devereaux, an accountant, is director of manufacturing and distribution services at Mueller Prost PC in St. Louis.


Comments

Speaker: More banks are eager to make loans

By Bill Bregar
Senior Staff Reporter

Published: March 12, 2014 1:14 pm ET
Updated: March 12, 2014 1:17 pm ET

Post Your Comments


Back to story

Market Reports

Pipe, Profile & Tubing Extrusion in North America 2014

U.S. demand for extruded plastics is expected to grow by 3 percent in 2014, with PVC remaining the largest segment.

Plastic pipe will post the strongest gains through 2018, continuing to take market share from competing materials in a range of markets.

Our latest market report provides in-depth analysis of current trends and their financial impact on the pipe, profile and tubing extrusion industry in North America.

Learn more

2014 Injection Molding Industry Report

GROWTH, OPPORTUNITY IN SIGHT FOR INJECTION MOLDERS IN 2014

In the wake of the economic turbulence earlier in this decade, molders today find themselves in much better shape. Molders are gaining a competitive advantage by investing in people, equipment and seeking inroads into new markets on a global scale.

Growth in the injection molding industry is going to be driven by low financing costs and a continued move to reshore some business.

Learn more

Shale Gas Market - Analysis of North American Region

This report highlights the impact of shale-based natural gas on the North American plastics market and features an in-depth analysis of production trends in the United States during 2013 and a forecast for 2014 and beyond.

Learn more

Upcoming Plastics News Events

September 10, 2014 - September 12, 2014Plastics Caps & Closures 2014

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

More Events