Bankers Leasing –The Skinny on Citibank

Yesterday, I was contacted by an account representative for Bankers Leasing.

For the past few months the sales team had suspected something was wrong, as

expense account reimbursements were strangely delayed, and marketing and

convention travel was being highly scrutinized.

It has been known that Bankers has been up for bid for several months, yet

despite purchase offers, Citibank Leasing has decided to close the division

rather than sell. Many at Bankers feel this was due to Citibank not wanting

to compete with any potential buyer of Bankers.

Citibank Leasing also owns Citicapital Vendor Finance, a direct competitor of Bankers Leasing in the medical equipment leasing industry. Prior to the purchase of Bankers Leasing, Citicapital Vendor Finance had been competing with Bankers in major accounts such as PSS (Physicians Sales & Service). Many of these major

accounts had agreements with both Bankers Leasing and Citicapital Vendor

Finance for their customer financing, so after the purchase, Citibank found

they were competing with themselves.

 They found some reduced rates were offered and application only business was split by vendors and sent to each division. Bankers and Citicapital maintained separate credit desks consequently, the split applications went unnoticed.

As of yesterday morning, despite the offers made to purchase Bankers

Leasing, most  sales representatives were terminated and required to vacate

the premises. I am told, it was handled in a very cold manner via a

conference call and despite several questions Citibank Leasing merely closed

the conversation with "Bankers is now closed and will be liquidated".

Employees in California and offices in Chicago were given 60 day notice as

required by state law with other employees terminated immediately.

Vendors were contacted with the news that Bankers had been closed and that all

business would be handled by Citicapital Vendor Finance.

Representatives of Bankers received immediate phone calls from competitors

interested in hiring the whole group. Negotiations continue as the sales

team desire to find a home for themselves and their book of business.

Prospect Leasing was originally founded by Bruce Horton, now with Banco

Popular Leasing, with a specialty in medical equipment financing. The

company was later sold and renamed "Bankers Leasing". Citicapital later

purchased Bankers along with American European Bank "EAB", a general

equipment Lessor (also closed by Citicapital) two years ago.

Name With Held

Citi keeps saying "business as usual" and they'll take any leasing deal but

try calling them.  They have no programs for middle market leasing.  They

just want us to think they're still a competitor in order to keep other

lessors out of the market. They are in the business of buying lease

portfolios so they can augment the business throughout the myriad of other

services they provide.  Many of my (former) clients are disappointed to hear

that Citi doesn't want their business. 

Name With Held