Monday, August 10, 2009
Correction---We get eMail
######## surrounding the article denotes it is a “press release”
Correction---We get eMail
"Rudy Trebels New Company
"Equipment Leasing Group of America
"Rudy Trebels, CLP
"Please be advised that contrary to your statement in your Friday, August 7, 2009 edition of Leasing News where you listed my name as an employee of Equipment Leasing Group of America, I am not associated in any way with the company.
"In the future, please contact me directly for verification purposes before publishing my name.
"I am not employed by Equipment Leasing Group of America. Please check your facts before printing such errors. I am currently devoting my efforts to finding a challenging opportunity with a company that desires to leverage my 20+ years of successful sales & syndication experience along with my contacts. Thank you for your attention to this important detail."
Gary Trebels, CLP
("Letters---We get eMail" are not Leasing News articles but email from readers to the editor. This was from a well-known reader with inside access to IFC Credit. He stated he got the information off the extension numbers. A call to the telephone number on Saturday brought up extension #1 for Rudy Trebels, #2 for Brian Trebels, and #3 for Pat Meyers. Leasing News did originally attempt to speak with someone at Equipment Leasing Group of America, and at the time did not know how to contact Mr. Brian Cascarano or Mr. Gary Trebels, CLP. More importantly, this was from a reader to the editor, not a Leasing News article. editor)
Classified Ads---Asset Management
"I wanted to take some time and let your readers know how precious jobs and steady employment can be in these difficult times. I have over 25 years of experience in the Equipment Leasing and Financial Industries, specializing in Workouts, Equipment Valuation, Restructures and Special Assets. Having looked for steady employment for the past two years, I can sympathize for the other individuals that get up every morning with the hope that something will change. While a lot of us still believe the bottom has yet to hit, it is crucial that we all continue to keep on trying, keep your family close and even say a prayer or two.
"After speaking with countless recruiters, banks and leasing companies, I find the old phrase so true - ‘It's not what you know but who you know.' Dig up those old contacts, rolodexes and try to get in touch with those associates and acquaintances.
"I might yell at the cat in the morning to get out of the garbage or curse myself for not sending out enough resumes but try to remember how lucky all Americans are to live in this free society. The United States will rebound from this and become a much stronger and smarter nation.
"May God Bless and keep us hoping for that break we all deserve."
(His classified asset management ad appears below
For a full listing of all "job wanted" ads, please go to:
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ELFA Career Center: Job Seekers (free):
Marlin Leasing 2nd 8K Available
"As a stockholder, I like what I see with Marlin. They are running lean right now with 33 sales reps. Their funding of $5-6 million per month is still an average of $150,000-175,000 per rep in volume, at yields they haven't seen since their early days. Losses should continue to come down as the economy improves and their tighter credit standards take hold. They should be in a good position when they get their additional capital from Marlin Bank."
It also should be noted that among the publically held leasing companies, Marlin is at the top at $7.50, CIT last call Friday $1.47 and last trade for Microfinancial at $3.31. There are many bank and other institutions that have leasing companies, but these are the only three solely publically held leasing companies.
The second quarter SEC filing for Marlin Business Services, Mount Laurel, New Jersey, is now available for those interested:
Marlin also has redesigned their new web site that now opens:
"Success is a Journey...not a destination. We can help you along the way." https://www.marlinleasing.com/index.asp
Association Member Count shows EAEL-UAEL Merger Failed
It appears the merger of the Eastern Association of Equipment Lessors and the old Western Association of Equipment Lessor, which became the United Association of Equipment Leasing, did not result in a larger organization. The six month results of leasing association results show the successor organization National Equipment Finance Association not inline. It strongly suggests the two personalities with their own board, meeting schedule, agenda, did not happen. No doubt the down finance and leasing industry did not help, but the statistics show otherwise when compared to the other leasing associations. You can't just blame the resulting numbers on the economy. The membership numbers are very disappointing.
The current membership count of the new National Equipment Finance Association is 249, according to Joe Woodley, CLP, Membership Director. The year-end numbers of both added together are 472. According to a joint press release (1) as a main reason for the merger, 60 members belong to both, making the actual number then 412. That was the number used, not 472, which would have made the actual percentages much higher. As it is: 39.5%
Joe Woodley, CLP, believes once "former" members want to sign up for the Monterey Conference September 24-27, they will rejoin. He believes it has always be a popular conference in the past and will remain so. Attendance may tell.
The National Association of Equipment Leasing Brokers is down almost 16.7%, primarily broker members, not funders.
Monica Harper, NAELB Executive Administrator told Leasing News:
"The NAELB Membership as of June 30, 2009 was as follows:
"Associate Members - 47
"Obviously we have all taken a hit by this economy but new membership applications remain steady and we are optimistic that we will fully bounce back in the next year or so."
It is interesting to note from the year-end report (2) there were 113 funders at the end of last year, and today 97. At the end of 2008, NAELB had 849 brokers, and today the number remains at 695, a little of 18% and compared to the total membership drop of 16.7%. It is not funders who left, but brokers, perhaps new brokers from schools and other industries who thought this was an easy profession.
There also may be some considerations of the definition of a "funder," but the point is a funder joins for $750 and a broker for $295. The NAELB definition, by the way, is quite precise:
"Funding source membership shall be open to those that are engaged in the providing of funds, directly or indirectly, for the financing of equipment lease transactions and who agree and endorse the NAELB Code of Ethics and Bylaws. An NAELB Funding Source member shall have no voting rights."
The Equipment Leasing and Finance Association is down 14.2%, primarily composed of bank members who have left, merged, or purchased by others, as well as larger independents. The 25 member staff is active with many programs . They have a daily news email, several list serves per subject, all active, a magazine that is superb, monthly, but to members only, and have very active committee meetings.
They are also the only ones who actively work not only congress but the state governments and have been working on streamlined tax with all the state governments for going for quite some time with Dennis Brown very active---a major project. They will be without a president as a special committee searches for a professional association executive, while Ralph Petta, on staff since 1987 is the interim president. Perhaps they will have an executive on board to introduce at their October 18th -20th conference in San Diego, California.
It would be expected with the financial problems and ratings of various city, county, and state governments activating in the government leasing sector, the Association of Government Leasing and Finance Association membership would be down. Under the circumstances they appear to be holding their own, especially compared to the other leasing associations: down only 4.9%.
Membership numbers were not available from the National Vehicle Leasing Association. It should be noted they cancelled their June 10, 2009 Annual Convention and that should tell you enough. Vehicle sales are down, so is leasing, fleet sales, too. At one time they had between 200 and 250 members.
Cindy Spurdle, Executive Director of the Certified Leasing Profession Foundation reported 182 CLP's: "We have 182 CLP's in Good Standing, up slightly from the first quarter. Three of those are brand new CLP's and a few more have decided that this designation is very important to them, especially with what we are going through in our industry today and wanted to make sure they were in good standing.
"At the end of 2008 there were 179 CLP's in Good Standing. At the end of our first quarter there were 176 CLP's in Good Standing. The term 'In Good Standing' means that each CLP is current with their dues and recertification's and are actively involved in our industry."
The prior year it was at 204, at the beginning of the year down 28, now down 22, primarily "no longer in the leasing business."
Arizona Equipment Leasing Association numbers remain stable, and the group has always been small as it contains members only from Arizona. It is estimated to be around 25, but an official count is not available, Leasing News was told. The group is active. They get together for social and business meetings often during the year, even invite speakers.
There are other associations, such as Commercial Finance Association, but this trade publication primarily deals with the equipment leasing industry.
(1) EAEL-UAEL Merger Report
(2) Year-end Membership Report:
Leasing Conference—NEFA Early Bird ends Friday
September 24-27, 2009
November 9, 2009
To view Leasing Association Events-Meetings Open to All, please click here.
Leasing Industry Help Wanted
Leasing Press—Small Ticket Market Books
Three best selling titles--Small Ticket: $39.95 + s&h...Power Tools: $45.95 + s&h...Tech Leasing: $38.95 + s&h. Call, write, fax or email (click on order form below).
When everyone is hungry for new business, and times are hard, that is when the scam artist comes to town. Fraud is easiest when we have to fight for each deal. Never short change your standard credits checks and review anything that looks out of sorts. So I think a review of some standard "take it for granted "mistakes re in order! Never let a lessee push you into a quick decision and never skip over your standard procedures.
Check with the lessee's State to determine the companies "Good Standing" and review the correct spelling of the company name for discrepancies. What appears to be a minor mistake in spelling the company name or the use of inc., instead of Corp., spells real trouble and should be checked much further. I would run credit checks on the principles regardless of any requests for guarantees to confirm how they are handling their personal credit. Remember that no personal credit history is one of the largest red flags in fraud cases; Check the better business bureau to determine if there have been any customer complaints. Check for tax liens and make sure on transactions over $50,000 you visit the company facilities and take note of the major pieces of equipment and check it against the UCC liens. One of the largest frauds in the leasing industry could have been discovered with a simple equipment inspection. The company only had three machines in use but had over thirty leased.
Run a UCC check to determine what kind of creditors they do business with and what type of equipment have liens in what location. Also if the vendor is obscure or is selling an off brand equipment then check with the manufacturer on the vendors status. If the manufacturer is obscure, or makes something you have never heard of, check them out by making a few phone calls or checking them out on the internet with trade associations or their local banker. The more obscure the supplier the more checking you need to do on the source of the equipment.
Also look for well prepared equipment invoices with all the information you would expect on an invoice. Invoices that are poorly made or come on standard forms that you can buy at a form shop should cause you to question their validly. Not everyone has pretty forms but you know when an invoice lacks the proper information and it should raise a red flag and be checked out. Most of the fraud cases I have seen included sloppy documentation and poor common sense. Also please avoid transactions or be especially careful if the vendor is a relative of the lessee.
Never, Never, Never do a sale- lease- back without inspecting and recording the equipment. Ask to see the original invoices for purchase, with the company as purchaser, for proof of ownership. Sale-lease-backs have been a favorite target of fraud because it does not require a vendor in the middle and there is so many steps to complete the transaction that many leasing companies fail to complete all of them.
I also need to suggest that you check out the person that signs the lease to make sure that they are an owner or qualified officer of the lessee. We have seen fraud cases where an employee of a company provides a resolution for authority signed by them authorizing themselves to sign. It can happen but bit warrants some outside confirmation, because it is highly unlikely in a large company this would happen. Sometimes it is best to ask for more than one person who is qualified to make it harder for one person to create the fraud.
It may seem to you that this is a lot of extra work and time. However all I am saying is that if you follow standard procedures and something does not look correct then step back and check everything because scam artists play on your assumptions that everyone is honest and hope you will not see the cracks. There is a lot of fraud today and remember a non-recourse assignment does not relieve you from being responsible for fraud. Most assignment forms state that it must be a legally collectable transaction and fraud comes back to the leasing agent or broker.
Mr. Terry Winders, CLP, has been a teacher, consultant, expert witness for the leasing industry for thirty years and can be reached at email@example.com or 502-327-8666.
He invites your questions and queries.
Previous #102 Columns:
Leasing News Top Stories—August 3-August 7
Here are the top ten stories opened by readers:
(1) Cut Backs Continue in the Leasing Industry
2) Looking for New Broker Business
(3) First Sound Bank Continues Losses-Pugent Sound Leasing
(4) Marlin turns in $550,000 GAAP Quarter
(5) LEAF down $11.25 Million from last year
(6) Agents Raid Bank and Lender in Florida
(7) Reactions to Bentsen leaving ELFA
(8) Ken Bentsen resigns ELFA/What is SIFMA?
(9) Economists: Vegas's good times are over
(10) Leasing 102 by Mr. Terry Winders, CLP
Extra (not counted for technical reasons)
Bank Beat---Stearns Bank Leasing/72 failures this year
Colonial BancGroup, Montgomery, Alabama, who operates 355 branches in Florida, Alabama, Georgia, Nevada and Texas with over $25 billion in assets, officially acknowledges that it is under criminal investigation by the Department of Justice regarding one year's worth of financial statements alleged accounting irregularities at its mortgage warehouse lending unit. Reportedly Colonial is also the subject of a Securities and Exchange Commission investigation related to its participation in the TARP program, including accounting for loan loss reserves.
Community First Bank, Prineville, Oregon, was closed Friday by the Oregon Division of Finance & Corporate Securities, with the FDIC entered into a purchase and assumption agreement with Home Federal Bank, Nampa, Idaho, to assume all of the deposits of Community First Bank, excluding those from brokers. It became the 72nd bank to fail this year in the United States, third in Oregon.
There are eight branches. As of July 5, 2009, Community First Bank had total assets of $209 million and total deposits of approximately $182 million. In addition to assuming all of the deposits of the failed bank, Home Federal Bank agreed to purchase approximately $197 million of assets.
Home Federal Bank will purchase all deposits, except about $31 million in brokered deposits, held by Community First Bank
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $45 million.
Stearns Bank, St. Cloud, Minnesota, "The Nation's Local Bank," picks up 13 branches in Florida. They have an active equipment leasing
They also have been active in security banks that have failed, gaining their branches, including at the end of February of this year acquiring a $730 Million loan portfolio from the FDIC. The purchased loans are for properties in the states of Arizona, Nevada, California and New Mexico and came from the former First National Bank of Arizona and Nevada. They have branches Arizona, Florida, and their main headquarters, Minnesota.
Community National Bank of Sarasota County, Venice, Florida, was closed and FDIC assigned all deposits to Stearns Bank, National Association, St. Cloud, Minnesota. There are four branches.
As of June 30, 2009, Community National Bank of Sarasota County had total assets of $97 million and total deposits of approximately $93 million. Stearns Bank, N.A. will pay the FDIC a premium of 0.25 percent to assume all of the deposits of Community National Bank of Sarasota County. In addition to assuming all of the deposits of the failed bank, Stearns Bank, N.A. agreed to purchase $94 million of the failed banks assets. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $24 million.
Community National Bank of Sarasota County is the 71st FDIC-insured institution to fail in the nation this year, and the sixth in Florida.
First State Bank, Sarasota, Florida, was closed today by the Florida Office of Financial Regulation, Stearns Bank, National Association, St. Cloud, Minnesota, to assume all of the deposits of First State Bank, excluding those from brokers, plus take over the banks nine branches. This is the 70th bank to fail this year and the fifth in Florida
As of May 31, 2009, First State Bank had total assets of $463 million and total deposits of approximately $387 million. In addition to assuming all of the deposits of the failed bank, Stearns Bank, N.A. agreed to purchase approximately $451 million of assets. The FDIC will retain the remaining assets for later disposition. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $116 million.
List of Bank Failures (now six pages):
Alexa Ranks Leasing Media Web Sites
David G. Mayer's Business Leasing and Finance News is not included in the Alexa report list as it does not have its own individual site and Alexa finds Patton Boggs, LLP Attorneys at Law. The rating is not valid as it includes all those who visit and communicate with the law firm. When Business Leasing and Finance News has its own individual web site, it will be included in the Alexa survey.
*It should be noted that NAELB web site "list serve" requires logging onto their site, meaing their e-mails are counted as a visit to the site, whereas they are "list serve" communication. These are technically visits to the web site, but primarily to use "list serve."
The Alexa tool bar works on most browsers.
Locals line up for rail bonanza
By: John Pletz
Jim Coston, head of Corridor Capital, says, "We see the stimulus as a way to restart the rail-car industry in this state."
Jim Coston is betting that the billions of federal dollars aimed at a high-speed rail system could reassert Chicago's place as the nation's rail center - and jump-start his attempt to resurrect a business that flourished here a century ago: building passenger rail cars.
Mr. Coston, a Chicago lawyer and railroad veteran, is just one of the entrepreneurs and business owners lining up to share in what could be a huge boon to the region, in terms of jobs and transit improvements, once President Barack Obama unleashes $8 billion in high-speed rail funds.
"This is the real deal," says Joe Schwieterman, director of the Chaddick Institute for Metropolitan Development at DePaul University. "The Midwest has become the odds-on favorite to bring home big dollars."
The competition could be fierce. Already there are about 300 applications from around the country with a collective price tag of more than $100 billion chasing the feds' $8 billion.
But insiders say Illinois could snare as much as $2 billion, leading to thousands of jobs in manufacturing, construction and railroads.
Much of the high-speed rail money likely will be spent on laying track, says Joseph DiJohn, director of the metropolitan transportation support initiative at the University of Illinois at Chicago. "The first step toward high-speed rail is to separate passenger traffic from freight."
The Chicago-St. Louis corridor, for instance - at the top of the Midwest's high-speed rail plans - would require a second line of track from Joliet to St. Louis that would be laid by railroad employees. Such an extensive project would require hiring, says Mike Payette, vice-president for governmental affairs at Union-Pacific, which owns the line.
The plan also would require investment in new cars. The Chicago-St. Louis route alone would double the number of trains to eight daily from four. That's where Mr. Coston comes in.
With the stimulus, he figures, the state of Illinois will finally have the money to order the dozen Amtrak trains that have been on its wish list since last fall. "We see the stimulus as a way to restart the rail-car industry in this state," says the head of Chicago-based Corridor Capital, an investment company that bought options on 50 former Amtrak cars that he says could be rebuilt within the two-year time frame required for stimulus projects.
If he won even part of the order, Mr. Coston says, he could immediately put 25 people to work, doubling employment at Gateway Railcars in Madison, near St. Louis, a contract partner. Since Pullman Co. ceased production in 1981, Gateway is the state's sole maker of passenger rail cars.
New train orders also could help National Railway Equipment Co., a locomotive manufacturer based in Downstate Mount Vernon, return to full employment of about 1,100. Its workforce has dropped 20% since last year because of the downturn. "It would fill the void," Vice-president James Wurtz says.
Stimulus funding also would mean additional hiring at Kustom Seating Unlimited Inc., a Bellwood company that makes seats for Amtrak, Metra, the CTA and rail operators across the country. Employment already is up about 20% to 120 workers because of a surge in mass-transit spending, says Gene Germaine, director of business development, and stimulus funding is fueling additional demand. The company expects to boost its payroll by another 20% next year.
Illinois hasn't put a number on the jobs that stimulus money would create if its projects were funded, though the Midwest's high-speed rail plan could generate up to 15,000 construction jobs and 57,000 permanent ones, Michigan Gov. Jennifer Granholm has estimated. Chicago is at the heart of that plan, which includes high-speed lines to St. Louis, Madison, Wis., and Detroit.
CREATE A WINNER
The biggest stimulus winner likely will be the six-year-old Chicago Region Environmental and Transportation Efficiency program. It includes 78 rail projects to speed up freight traffic, separating passenger and cargo trains from each other and from vehicles. Until now, it only had about $200 million in funding, mostly from five freight railroads and the federal government, to pay for an estimated $1.5 billion in improvements, leaving the major construction projects waiting for backing.
Already the state has set aside $322 million in its capital budget to fund projects under the program. If the big-ticket items, such as highway overpasses and railway "flyovers," get stimulus funding, it will trigger a flurry of work for construction companies, says Tom Livingston, a vice-president at CSX Corp.
And while it would take years to complete all the rail work, more jobs could be in the offing once the trains start rolling.
"Eventually, after all the infrastructure work is done, that means operating jobs at the back end," says Bob Guy, legislative director in Illinois for the United Transportation Union, which represents railroad workers. "If everything comes through, it should be a boost in railroad employment across the board."
### Press Release ##########################
Sun National Bank Launches Sun Bank Business Credit
VINELAND, N.J., -- Sun National Bank today announced the launch of Sun Bank Business Credit, the newest addition to the bank's growing list of in-house capabilities that serve commercial borrowers' broad range of financing needs.
Sun Bank Business Credit is focused exclusively on asset-based lending and structured finance, which offers specialized, collateral-based funding determined by balance sheet assets, providing an alternative funding source for businesses unable to utilize traditional lending products. Asset-based lending is a viable solution for companies in need of working capital to support rapid growth, as well as those looking to complete management buy outs and restructurings, and to refinance existing loans.
"Because of today's economic environment, many banks and finance companies have tightened credit policies and some have retreated from the asset-based lending arena altogether, lessening access to capital for businesses," said Bruce Dansbury, chief operating officer and chief credit officer at Sun. "Given both of these factors, asset-based lending is an excellent opportunity for Sun to serve the needs of our expanding base of business customers, safely and selectively grow a portfolio of higher yielding loans and cross sell additional business solutions, like our cash management services."
Drew Neidorf will lead the new division, supported by a seasoned team of relationship managers and credit staff. Neidorf has spent the majority of his 30-year career serving middle-market businesses with asset-based lending solutions. He most recently served as president of Greystone Business Credit in New York City. He also has held a variety of executive-level positions, including president of CIT Credit Finance in New York City, president of Nations Credit, also in New York City, and national director of lender services for Jefferson Wells International in Milwaukee, Wisconsin. He holds a bachelor of science in Accounting from Syracuse University.
"The team is extremely excited to join the well-respected professionals at Sun National Bank at a time when businesses demand and appreciate banking partners who offer more flexible alternatives to help them grow," said Neidorf. "There is more than $100 billion of asset-based loans outstanding in New Jersey, New York and Pennsylvania, with growth trends increasing. We believe Sun Bank Business Credit will take advantage of market opportunities and strongly complement the bank's already broad scope of banking and finance solutions."
Sun Bancorp, Inc. (Nasdaq: SNBC) is a $3.6 billion asset bank holding company headquartered in Vineland, New Jersey. Its primary subsidiary is Sun National Bank, serving customers through 70 locations in New Jersey. The Bank is an Equal Housing Lender and its deposits are insured up to the legal maximum by the Federal Deposit Insurance Corporation (FDIC). For more information about Sun National Bank and Sun Bancorp, Inc., visit www.sunnb.com.
### Press Release ############################
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Today's Top Event in History
1987 - Celebrating its 5,000th performance today was "A Chorus Line". Since its opening night in 1975, an estimated 25 million theatre goers had seen the musical, with an estimated 16.7 million having seen the show on Broadway, and an additional 8.3 million viewing the touring production. On September 29, 1983, "A Chorus Line" became the longest-running show on The Great White Way, staying there until 1990.
This Day in American History
1588 – This event is mentioned as history may have been quite different for the founding of the United States. The Spanish Armada, a fleet of 130 huge ships, met defeat at the hands of English sailors and their smaller, more maneuverable vessels. Then a series of wicked Atlantic storms off the coast of Southern England took their toll. Only half of the 130 Spanish ships managed to limp ... at best ... home. The 60 or so English ships, plus the weather, saved England from the Spanish invaders.
Your 95 MPH Fastball Won't Get You In The Draft Anymore
Like a 1400 on your SAT won't get you into Harvard
Who will get through the traffic jam?
Let me write one tremendously long line like the horizontal bar at
Tim Peeler in "Waiting for Godot's
The object is to insert the numbers in the boxes to satisfy only one condition: each row, column and 3x3 box must contain the digits 1 through 9 exactly once. What could be simpler?
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