Baystone Government Finance, part of KS StateBank and based in Manhattan, KS, reported a company record 2022 year in new business volume and remains optimistic about 2023 due to rising demand for equipment and vehicles from schools and counties across the United States.
“The average size of deals rose 22%. Securing more partners last year contributed to the gains and adds to a positive outlook,” David Burr, assistant vice president at Baystone, said. “A big category of volume was yellow iron construction equipment and he expects this asset class to continue strongly. School technology is expected to be in demand this year. It is traditionally 17% to 20% of Baystone’s business, but last year it was only 8%, mostly because public schools could access government assistance during the Covid pandemic. These schools often need to refresh their technology to some extent every few years and it is time for many to do that now.”
Another contributing factor to 2022 growth was client interest in a new solution called vendor payable accounts (VPAs) introduced last year to work around supply chain delays. “These are escrow accounts with limited paperwork and a locked-in interest rate,” Burr said.
The VPAs were part of the reason for the school bus volume going from 8% to 13%. “We also have a good reputation,” Burr, said. Baystone has been involved in government finance since 1987. In 2022 Baystone reported volume at $261.5 million, compared to $224.9 million in 2021.
