IFG Leasing

John Tobenson National Broker Division Manager

With all the changes in the leasing industry, including acquisitions, mergers,

purchases of “assets only” or bankrupt porfolio’s, who has the “rights” to

repeat business or the dealer who sold the equipment?  Many companies

spell out this policy, such as the Manifest Group, which issues an “insurance

policy” to its brokers, while others have provisions in their “representation

and warranty agreement,” others have none, and perhaps many are now

unenforceable.

Leasing News will publish your “lease broker protection” policy to share

with the rest of the industry.

The most definitive one I have seen comes from the defunct IFG Leasing Company, Inter-Regional Financial Group, in a newsletter dated February, 1982, from John Torbenson, national Broker Division Manager, page 2 ( at Leasingnews.org  ”on line version,” you will see his picture as it appeared in “Broker Re-Lease:”)

Broker Categories Defined

A number of you have been asking what the different categories of brokers are at IFG in case you should find yourself in a non-active status. Below I’ve listed the seven categories of brokers and defined them. I would say that 90 percent of the brokers that we do business with are in an active broker status. However, a broker can fall into other categories.

1.       Active Brokers — approved brokers with a complete, cur­rent file, who met volume requirements and who have not been placed in another category. 1FG will accept lease ap­plications and will fund transfers with these brokers.

2.       Active Brokers- Incomplete File — brokers whose files are either Incomplete or non-current. Brokers in this category will be so notified and will be given 90 days to complete and/or update their file. IFG will accept and will fund trans­actions of brokers In this temporarily active category. Bro­kers failing to provide a complete file or to bring their file current within 90 days will be placed in the “Non-Current Broker” status.

3.          Probation Brokers — brokers from whom IFG will accept applications and will fund transactions for a temporary period of time until some problem is rectified. Typical rea­sons for brokers being placed in this category include:

problems with lease applications (i.e., excessively high vol­ume of rejected or dead applications), problems in daily business relations with IFG, and brokers using a “shotgun” approach to locating funding sources for their deals. Brokers will generally be given 90 days from date of noti­fication to correct the problem cited.

Non-Current Brokers — brokers from whom IFG has ac­cepted business in the past but who have not done busi­ness with IFG for an extended period of time and/or brokers who have not maintained a complete, current broker file at IFG. Lease applications will be accepted from these brokers, but broker commissions will not be paid until broker files are completed and/or brought current at IFG.

Ineligible Brokers — brokers who do not meet IFG’s credit, volume, or quality of business requirements. IFG will not accept lease applications from these brokers.

Newsletter Only Brokers — brokers who have not conduct­ed financial business with IFG, but who are interested in IFG and whom we feel may someday become active brokers.

7.          Restricted Brokers — brokers from whom we will not ac­cept any lease applications under any circumstances.

Those of you In status #2 will want to finish completing your brok­er file and/or bring It current. As a reminder, a complete file con­tains a bank reference, three additional funding references, a cur­rent business or personal financial statement, and a brief history of your firm. You must be in category #1 to qualify for our Big Bang Bonus Contest. If you are not sure of your current status, be sure to ask either Kim McConville, our Administrative Secretary, or myself.

This historic newsletter also goes over IFG Leasing Variable Rate leasing program:

“Under each basic rate structure, Floating or Fixed, we differentiate three categories of contracts for rate purpos­es: ITC to IFG, ITC to Lessee, and CSC. Once again, the rates reflect IFG’s differing costs of money.

“I should stress that on our Floating Term Lease the pay­ments remain constant throughout the lease life. The only new twist is that the number of payments at the end of the lease may be decreased or increased a little depending on prime rate fluctuations during the term of the lease. It should be quite simple to sell a Floating Term Lease to your client since it reduces the buy rate 125 basis points while allowing the client the benefit of predictable cash flows. In essence, he receives one of the major benefits of Fixed Rate financing at a Floating rate price.”