Shona Barnthouse No Comments

The Resurgence of the Manufacturing Industry: A $1 Trillion Shift Unveiled

The Resurgence of Manufacturing: A $1 Trillion Shift Unveiled

The manufacturing industry in the United States is currently undergoing a significant transformation, driven by technological advancements and substantial investments. A recent report by Goldman Sachs highlights this trend, with over $1 trillion invested in manufacturing and infrastructure, signaling substantial growth and innovation in the industry. This period of change presents valuable opportunities for manufacturing businesses, and we are here to provide insights and support to navigate this evolving landscape.

The Emerging Trend in Manufacturing Investments

Recent data underscores the scale of this industrial resurgence, with a substantial increase in projects, particularly in semiconductor manufacturing, electric vehicle and battery plants, and clean energy projects. Notably, semiconductor plants account for a significant portion of these investments, totaling $222 billion. These figures signify a shift toward a more advanced and sustainable manufacturing ecosystem in the U.S.

Understanding the Current Scenario

Goldman Sachs’ analysis also reveals a notable increase in project activities, with projections indicating more than $80 billion in investments for both 2022 and 2023. This is a substantial contrast to the average annual investment of $23 billion observed from 2011 to 2021. However, it’s important to note that these are early stages, and a majority of equipment orders are yet to be fulfilled.

Grasping Project Timelines and Challenges

These investments often entail significant delays between project announcements and equipment orders. For instance, while a non-residential construction project might take 18–24 months from groundbreaking to production initiation, a semiconductor plant can take 36–60 months. Manufacturers must understand and plan for these delays.

Adapting to Capital-Intensive Venture

We recognize that stepping into or expanding within the manufacturing sector demands substantial financial resources. Our approach at AFG revolves around developing customized financing solutions aimed at easing the initial financial load, all while prioritizing manageable terms and efficient cost management strategies.

As we witness a substantial transformation in the U.S. manufacturing industry, it becomes apparent that we are entering a new era of industrial development. This shift presents various challenges and opportunities, particularly in the realm of financial planning and equipment financing & investments. At AFG, our commitment lies in offering support to comprehend these shifts, adapt strategies accordingly, and prosper in this dynamic phase of American manufacturing.

Alliance Funding Group No Comments

Section 179 Yearly Tax Deduction

What is Section 179 Tax Deduction?

Section 179 is a tax deduction that enables businesses to depreciate assets in the first year they purchased the asset. All assets must be put to use by December 31 of the 2024.

Why should I care about this tax deduction?

In 2024, your business can deduct the full cost of qualified equipment purchases, up to $1,220,000, with a “total equipment purchase” limit of $3,050,000.

Besides, you can take advantage of 60% Bonus Depreciation on the “new to you” equipment this year.

How to calculate my savings from Section 179?

Please use our equipment calculator for illustrative purposes:

What qualifies as Tax Deductible assets under Section 179?

  • Tangible property or hard assets (such as machines, equipment, furniture)
  • Single-purpose agricultural or horticultural structures
  • Storage facilities
  • Off-the-shelf computer software placed in service during the tax year

What are the requirements?

  • New or Used equipment with a total price of up to $3,050,000
  • Must be acquired for business use
  • Must be put to use before December 31st, 2024

How can I benefit from this Tax Deduction?

AFG offers financing and leasing solutions that are compatible with Section 179. Benefit from tax savings this year and pay for your equipment over time.

Get a free quote on equipment financing today.

*The information on this site is for illustrative purposes only. Please consult with a qualified tax advisor concerning your specific situation.

Ivan Pereverzev No Comments

Alliance Funding Group Initiates a New Division for Mid-Market Equipment Leasing, Led by Randy Hicks

Alliance Funding Group is proud to announce the appointment of Randy Hicks as its new Senior Vice President of middle market equipment leasing, balance sheet strategy. Mr. Hicks has successfully recruited Todd Greenberg (SVP, CRO) to lead the risk management duties of the new strategy.

Hicks brings over 30 years of experience in the mid-market equipment leasing and finance sector. Before joining Alliance Funding Group, he was an Executive Vice President and co-founder of Nations Equipment Finance, now known as SLR Equipment Finance, and held various leadership roles at GE Capital for 14 years.

With over 14 years in risk management, Greenberg joined Alliance Funding Group from his previous role as Senior Vice President of Risk at Post Road Equipment Finance and had a decade-long career at Nations Equipment Finance in various risk and analyst roles.

“Being active in the middle-market space as a syndicator, we’ve noticed that both banks and private credits have pulled back or moved upstream in their transaction minimums,” Brij Patel, president, CEO and founder of Alliance Funding Group, said. “Leveraging our balance sheet and with continued commitment by our bank partners, we feel that we can fill the void and provide access to competitive capital for our customers and vendor partners.”

“I am very excited to be joining the AFG team, where experience matters. As one of the largest independents in the market, AFG is well positioned to take this next step and I look forward to contributing to the success of this strategy,” Hicks said.

Alliance Funding Group No Comments

Alliance Funding Group Secures $39MM in Upsized Corporate Notes

Alliance Funding Group has recently hit a significant milestone. The company has recently managed to upscale its corporate notes to an impressive $39 million. This development underscores AFG’s financial stability and unwavering commitment to fostering growth. It consolidates AFG’s intent to carve out a leadership position within the equipment finance landscape.

The new issuance was assigned a BBB rating by a nationally recognized statistical ratings organization, highlighting AFG’s steadfast financial reliability. AFG plans to allocate the proceeds from this significant transaction towards amplifying working capital and financing the company’s ongoing growth. Alliance Funding Group is actively pursuing potential acquisition opportunities, recognizing them as strategic pathways to further strengthen the industry position.

Since its establishment, AFG has been committed to providing small-ticket and middle-market equipment leasing, financial, and working capital solutions to businesses across the United States. Marking an impressive growth trajectory, Alliance Funding Group has injected over $2 billion into more than 25,000 businesses, with the ambition to expand the influence further, propelling the success of an even larger number of businesses.

AFG expresses appreciation to its core base of institutional investors, whose unwavering support and trust in our growing platform has been instrumental in the company’s success. “With our competitors tightening their credit boxes, we see an exceptional opportunity to gain more market share, both organically and through potential synergistic acquisitions,” said Brij Patel, the founder and President of AFG.

The company’s Senior Vice President of Capital Markets, Brent Hall, emphasized, “After our successful securitization earlier in the year, this recent financing move strengthens our balance sheet even more. We’re witnessing considerable demand from our customers, and this additional capital will empower us to cater to their financial needs in an increasingly volatile economic environment.”

Brean Capital, LLC played a pivotal role in this transaction, serving as AFG’s exclusive financial advisor and sole placement agent. Their expertise and counsel have been invaluable in this significant accomplishment.

AFG is committed to delivering reliable financial solutions to a wide range of businesses, irrespective of the credit type. Headquartered in Tustin, California, AFG expanded its presence with offices in Los Angeles and Carlsbad, CA, Portsmouth, NH, Austin, TX, and Tacoma, WA. Looking ahead, AFG is poised to leverage this additional capital, fortifying its suite of services and contributing to the financial health and growth of businesses across the United States.