Yes, It's Gone---GE Capital-Colonial Pacific Leasing Broker Program

This has been officially confirmed from several sources.  On June 3, we had several inside sources tell us this was happening, but the memo was received by the brokers who remained on the program yesterday by fax. It appears the original group when it moved back East went from 100 to 45, was trimmed down again, being serviced primarily by the GE Capital Vendor Unit.

There reportedly was no problem with accounts or receivables, but that the program did not fit the GE Capital system.  Without the leadership and follow-up, including a consistent “deal flow,” the powers that be decided it wasn't a profitable enough venture---that simple.

There also appears to be a trend from funders that brokers are charging too many points in transactions, plus get approval but leases not signed, and the volume is down in this segment.

None of the sources that received the memo wanted to share the memo, or go on the record, as there are deals pending to be funded, plus residuals on leases that are involved.

This event may be good for Financial Pacific, about to issue an IPO, pending approval by the Security Exchange Commission, plus, in alphabetical order, Balboa Capital, ILC Credit,  Marlin Leasing, and Republic Leasing of South Carolina (division of NetBank, not to confuse with Republic Leasing of Colorado,) to name just a few.

  Here is the news we broke on June 3: 

http://www.leasingnews.org/archives/June%202004/6-03-04.htm#rumors