Baystone Government Finance reported a record year in new business volume in 2022 and remains optimistic about 2023 due to rising demand for equipment and vehicles from schools and counties across the country. David Burr, Assistant Vice President at Baystone, said the average size of deals rose 22 percent. Securing more partners last year contributed to the gains and adds to a positive outlook, he said.

Burr also 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 percent to 20 percent of Baystone’s business, but last year it was only 8 percent, mostly because public schools could access government assistance during the Covid pandemic. Burr explained that 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, adding that supply chain issues may be easing in some sectors but not all.

The VPAs were part of the reason for the school bus volume going from 8 percent to 13 percent. “We also have a good reputation,” said Burr, noting much of the new volume developed is by word of mouth and by the ability of their sales executives to showcase success in sectors matching the interest areas of prospects. 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.

Baystone Government Finance is part of KS StateBank, based in Manhattan, KS.