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Donna Mount's Son Found—and Reaction!
"Quinten has been found alive by Detective Black in Denver.
"I would just like everyone to know that the reason I love leasing is because of the people. When you posted this, the reaction and outpouring of concern was so touching, makes me know why I’ve always considered leasing people to be my family. "THANK YOU so much!!!"
Donna J. Mount
Reaction from Readers:
BARRY S. MARKS
“That's Great! It will be a HAPPY HOLIDAY for her. Best Wishes.”
“Oh thank goodness! Please pass on our gladness to Donna….”
Anna Nason | Marketing Coordinator
“Thank you, Kit, this is great news! I’m sure Donna could think of no better Christmas gift.”
Gerry Egan New NEFA Executive Director-and Reaction
(sent out late Wednesday afternoon, and if you
“Thanks for the excellent news.”
Sonia v. M. Stoddard, BPB
“We are thrilled that Gerry Egan has decided to join in with us and lead NEFA. Personally I don't think we could have selected a better person.
Reaction to We Support FASB Recommendations
(International Financial Reporting Standards Foundation)
Most of the reaction was favorable to the position above, except for one email and one telephone call. On the web, Shawn Halladay shared The Alta Group Comment and the Equipment Leasing and Finance Association (ELFA) issued a press release about their official position. The IFRS has received 135 “comment letters” as of December 12. Cut-off was December 15 with all comments to be posted within ten days, according to IFRS. More than likely over 150.
The one telephone call to Leasing News was from a banker, who specifically said it was his personal opinion and not the bank’s. He was quite articulate, has specific objections, but when asked if he would send an email that could be quoted, he said again it was his personal opinion and not the bank's. No email was received.
Bill Bosco, Leasing 101, a member of the FASB/FASB Leases Working Group and the ELFA Accounting Committee, sent an email. He stated he “… has worked in the leasing industry since 1974 and am currently a consultant to the industry.” He is very active with ELFA, especially on accounting issues.
His email with his objections and suggestions plus his “comment letter” to the IFRS Foundation follows:
Bosco eMail to Leasing News (3 pages):
Bosco Comment Letter (20 pages):
Shawn Halladay, Principal, The Alta Group, who has written articles on the proposed FASB Resolution for Leasing News and other leasing media, as well as he is an active member of the Leasing News Advisory Board, issued a comment with suggested changes and sent out via the Alta Group RSS:
Halladay-The Alta Group comment (6 pages):
The Equipment Leasing and Finance Association issued a press release in their recommended changes:
ELFA Cities Concern (3 pages):
ELFA Comment to IFRS (33 pages):
There are 135 comments, as noted earlier, to December 12, and current and as stated on the web site may take up to ten days for all comments to be brought to date:
Even industry experts agree that lease accounting standards are arcane and esoteric. It doesn't seem to be a question of “if,” but “when” the SEC gets its way and has the current lease accounting standards rewritten. When this happens, the leasing industry, as it has existed during the last thirty years, will change, and those leasing salespeople involved in so-called structured transactions will have to change the way they sell.
It's hard to argue with the SEC's position that off-balance-sheet treatment of leases allow companies to easily make a finance purchase appear like a rental contract. Using current accounting standards, lessees are able to legally keep an estimated $1.25 trillion (undiscounted) in future payment obligations off their balance sheets!
Robert Herz, chairman of the Financial Accounting Standards Board (FASB), agrees with the SEC. He questions why companies that acquire even essential assets, and incur a non-cancelable obligation to pay for them over time, want to keep the assets and the payment obligations off their balance sheets. The concern, of course, is with accounting transparency, and with ensuring the ability of investors to accurately evaluate a company's true financial condition.
So, how much of the leasing industry would be affected by these accounting rule changes? Since the SEC estimates that 63% of public companies use operating leases, and the estimated total cash flows related to non-cancelable operating leases outweighs the cash flows related to capital leases by more than 25 to 1, a significant percentage of the equipment leasing industry will be affected by the changes.
What will lessors and leasing sales professionals do if off-balance-sheet financing disappears and leasing products must be justified solely on economic terms? Without the advantages of off-balance-sheet leases, lessors will somehow have to position themselves as viable alternatives to basic interest-rate-spread lenders.
For those involved in structured transactions, now is the time to prepare a game plan for competing in a new accounting environment. The value propositions of lessors will need to emphasize creative financing products that address their customers' pressing business problems, expertise in asset and risk management, and other operational benefits of leasing.
Whether the client requests a Capital Lease to take advantage of depreciation programs or not, the sizzle of leasing in the sales presentation will change. Perhaps there will be more Equipment Finance Agreement contracts introduced.
The end of true leases will surely present true challenges for the industry. Leasing industry boosters will no doubt argue that just as the industry survived and prospered after the repeal of the Investment Tax Credit, ways will be found to survive future changes in accounting rules. Having met a great many smart, creative leasing industry veterans, I would bet on this argument.
Copyright © 2010 Selling UpTM. All Rights Reserved.
About the author: Steve Chriest is the founder of Selling UpTM (www.selling-up.com), a sales consulting firm specializing in sales revenue improvement for organizations of all types and sizes in a variety of industries. He is also the author of Selling The E-Suite, The Proven System For Reaching and Selling Senior Executives and Profits and Cash – The Game of Business. You can reach Steve at email@example.com.
Previous columns: View from the Top
Aggregate Funding Sources
There were over 25 in this category in 2001, when it was started.
Govlease qualifies, but is basically only for governmental entities with qualified lenders in an online, sealed-bid environment.
Top eLeasing companies as ranked by employees and volume
Why Are Funders Bothering to Sue E.A.R. Guarantors?
(Banks as large as Bank of America, Comerica, Fifth Third Bank, Harris Bank are involved in the Equipment Acquisition Resources lease financing fraud. A bankruptcy is in place, where many creditors are saying it is all worthless, not worth bothering to pursue, yet there are separate actions against EAR and the individual guarantors. Why? That is the question asked Mr. Witt. Editor)
Much has been written in Leasing News recently about the infamous (alleged) scam masterminded by E.A.R.’s Sheldon Player and his cronies. More than a few loyal readers of Leasing News have raised the question: With E.A.R. in bankruptcy and stripped of its assets, and with the guarantors (Player and his wife) having either (allegedly) fraudulently transferred or hidden their personal assets, why would the injured funding sources waste their time and money suing and taking default judgments against them?
It’s a multifaceted question and, frankly, not all that difficult to answer. First, default judgments (which result when a defendant in a law suit fails to file an answer to the complaint and appear in the suit) are relatively inexpensive to obtain because, simply, there is no one there to fight you. Depending on whether the court requires a hearing to determine the precise amount of the plaintiff’s damages, the entire process usually takes an attorney only a handful of hours from start to finish. Even if the plaintiff can’t locate assets to satisfy the judgment now, the guarantor’s financial situation may change next year, or in five years – or maybe it will take ten. In most states, judgments last a certain number of years but can be renewed at the end of that period. Theoretically, as a very general matter, a judgment could last indefinitely and bind the guarantor’s estate.
So the question really becomes: Unless there are unusually complicated roadblocks in the way to obtaining a default judgment (which is quite uncommon), why not get your judgment? Certainly in a small-ticket situation – say, a claim against a guarantor of only $10,000 – you can probably conclude, wisely, that you’d be throwing good money after bad by taking action against a guarantor who has no known, immediately available assets. But in the E.A.R. scenario, most of the defendants were out millions. Given the dollars at stake, it might even be legal malpractice, arguably, for an attorney to tell a client not to obtain a judgment, put in on a shelf, and wait.
And, there’s always the possibility of a sweet moment coming five, ten, maybe even fifteen years later. Imagine this scenario: A guarantor against whom you obtained the judgment finally fades back into anonymity, comes across some more money, signs an agreement of sale on a new mansion and finds out at the closing table that the title company will require your judgment to be satisfied before they will issue the title policy. You get a call, you rejoice, and you fax your wire instructions to the settlement table. Within the hour, you have your money and maybe a good amount of post-judgment interest, too. Any creditor who has been in business for more than five or ten years has experienced at least one such serendipitous moment, and maybe many.
Query: If debtors with unsatisfied judgments against Sheldon Player dating back to his infamous Greyhound (alleged) scam in the 1980’s had remained vigil and reattempted judgment executions two decades later, when he had gone off people’s radar screen – and before he made history repeat itself in his (alleged) E.A.R. scam – what might they have found?
Michael Witt was Managing Counsel at Wells Fargo & Co and Senior Vice President and General Counsel of Advanta Leasing Corporation.
### Press Release ##############################
EverBank Commercial Finance launches industrial finance group
Parsippany, New Jersey – EverBank Commercial Finance, Inc. the commercial finance and leasing subsidiary of EverBank Financial Corp, today announced the formation of a new industrial finance group. Based in Hampton, New Hampshire, the new business unit will initially service original equipment manufacturers, dealers and strategic direct customers in the flexible packaging and plastic markets. Samuel H. Smith III has joined the company as Managing Director and will be responsible for the overall leadership of this new business unit.
Mr. Smith has over 25 years of experience in the equipment finance and leasing industry. Prior to joining EverBank Commercial Finance, Mr. Smith held senior positions with Equilease Financial Services, ORIX Vendor Finance, Wells Fargo Equipment Finance, and Charter Financial. He was also co-founder of Wentworth Capital, a plastics and packaging specialty finance firm, later sold to Charter Financial.
Joining Mr. Smith will be an experienced team with whom he has worked for over two decades. George C. Muhoray will be responsible for vendor program management, Sheila S. Mahon will serve as operations team leader, and Fred A. Clough will direct the risk and credit function for the group. Each of these professionals brings a wealth of knowledge and a track record of building successful businesses in the industrial marketplace.
The EverBank Commercial Finance industrial group will capitalize on the team’s significant expertise in the plastics and packaging segments, offering innovative equipment finance and lease solutions for processors, molders, extruders and converters.
“The launch of the industrial platform is a natural extension of the strong vendor financing franchises we have built in the healthcare, office equipment and technology industries,” said Jim McGrane, President of EverBank Commercial Finance. “We now offer the same stable source of innovative sales financing, industry insight, and technical ability to industrial OEMs, dealers and direct customers to help grow their businesses.”
“We are excited to have Sam and his team join EverBank Commercial Finance,” said Mr. McGrane. “Their industry knowledge, experience, and commitment to client service make them a natural fit within the entrepreneurial culture at EverBank.”
About EverBank Commercial Finance, Inc.
About EverBank Financial Corp
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#### Press Release #############################
Mazuma Capital Announces Exclusive Broker Services Program
Draper, Utah –Mazuma Capital announces a new extension of services to include an exclusive broker program. The offering is part of Mazuma’s Strategic Development Program and provides innovative turnkey solutions for brokers and their clients.
The broker program has been formed in conjunction with Mazuma Capital’s new affiliation with the NAELB (National Association of Equipment Leasing Brokers). The exclusive broker program is available to brokers whom seek funding from $100K to $10MM for qualified middle-market clients. Through a private label solution or as a turn key service provider brokers may access this program to reduce turn-around time and streamline processes.
Mazuma Capital possesses financial backing that provides strength to fund transactions internally, allowing Mazuma to carry residual risk, fund projects over extended installation periods, and other capabilities that most of Mazuma’s competitors can’t match. By bringing together these unparalleled resources coupled with a unique approach to the market place, Mazuma Capital can deliver the quality, timing, strategy and strength that top brokers are seeking.
“We know and understand the competitive landscape of equipment leasing right now. With the migration of the main stream banks, money centers and independent leasing companies to better credit markets, these sources continue to tighten as they stretch to find ways to reduce static loss, take less risk and strengthen their respective portfolios. This has made the “A” credit markets extremely competitive and left a gaping hole in the “B” credit markets, said Jared Belnap, Mazuma Capital CEO and President. “Mazuma Capital, staying true to its niche`, has successfully funded more than $100MM in “B” credits since the start of the downturn. This is due to our strategic partners who remain flush with capital and our own internal capital and expertise in being able to structure and carry equity risk on transactions that have merit.
"As relationship continue to win deals, it is important for Mazuma to be an advocate for these companies, and the brokers that represent them. By following best practices and delivering on our commitments we have created an amazing broker program that provides flexible lease options to meet the needs of brokers and their clients”, he said “It is Mazuma’s goal to help promote these best practices and incorporate them into each leasing transaction and relationship we enter into.”
LinkedIn Jared Belnap:
### Press Release ############################
ATEL Leasing Launches $125 Million EBO Repurchase Program
ATEL Leasing Corporation, a San Francisco-based equipment lessor, has a new initiative targeting the purchase of leases with lapsed early-buyout options (EBO’s). The goal of this program is to address the dramatic increase of expired EBO options in order to mitigate asset risk for credit-based lenders.
The $150 million program will purchase active leases from other financial institutions where the lessee has irrevocably failed to exercise all available early-buyout options. The program will acquire single investor and leveraged leases and will purchase residual options. Equipment leased to top credits in the rail and energy sectors as well as other low technology equipment with a minimum of 36 months remaining prior to the end of term will be considered.
“It’s apparent that many lessors and lessees originally structured leases with the expectation that the early-buyout option would be exercised,” said Dean Cash, CEO of ATEL Capital Group. “In practice, it appears that a surprising number of lessees are intentionally allowing the EBO option to lapse, especially in the rail industry, due to excess equipment, tough economic times and budget constraints.”
“Many credit-oriented lenders are now saddled with a significant number of end-of-lease returns and lack the infrastructure to successfully remarket the equipment,” said Bill Bullock, ATEL’s national sales manager. “We’re seeing that many lessees have excess manufacturing, transportation and production capacity which has increased the level of end-of-lease returns.”
ATEL Leasing Corporation works closely with investment grade companies to provide equipment finance solutions for a variety of low technology asset types. ATEL Leasing Corporation is part of the ATEL Capital Group family of companies which includes ATEL Securities Corporation and ATEL Ventures. www.atel.com
#### Press Release #############################
Leasing Industry Help Wanted
"The punchy drama “The Fighter” and the bewitching animated feature “Tangled” arrive in theaters, while DVDs for action (“The Town”), romance (“Easy A”) and comedy (“Soul Kitchen”) hit shelves just in time to become Christmas gifts.
The Fighter (Paramount Pictures): Oscar season finds one of its strongest entries in this punchy dramatization of the story of real-life welterweight boxing champion “Irish” Micky Ward (played by Mark Wahlberg). Set in the working-class Massachusetts town of Lowell, it depicts Micky’s rise to fame and relationship with his family, most notably his manager-mother (Melissa Leo) and older brother Dicky (Christian Bale), himself a former boxer now addicted to crack and memories from his glory days. Micky falls in love with a tough local bartender (Amy Adams) and starts training for the big time, but will he be able to triumph over his personal obstacles? With sure-to-be-nominated performances and vivid direction by David O. Russell (“Three Kings”), the movie should score a K.O. with audiences.
Tangled (Walt Disney Pictures): Taking notice of the digital fantasy send-ups being made at fellow animation studios Pixar and DreamWorks, Disney offers its own fractured fairy tale with this funny and charming tale of princesses, magical elixirs, and 3-D thrills. Blowing the dust off of the old Rapunzel chestnut, it follows its long-haired heroine (voiced by Mandy Moore) from baby to young woman as she gazes down from the castle tower where she’s imprisoned. Instead of a prince, she gets a likable bandit named Flynn (Zachary Levi), who becomes her main ally in Rapunzel’s escape plan from wicked Mother Gothel (Donna Murphy). Brimming with colorful animated sequences, catchy tunes, and quotable life lessons, it’s solid family entertainment to give best “Toy Story” and “Shrek” movies a run for their money.
New on DVD:
The Town (Warner Bros.): Following an acclaimed directorial debut with "Gone, Baby, Gone," Ben Affleck steps behind the camera once more for this action-packed drama. Set in Charlestown, a crime-filled Boston neighborhood, it tells the story of the unlikely romantic bond that develops between Doug (Affleck), the sensitive leader of an outlaw gang, and Claire (Rebecca Hall), the bank manager who had been taken hostage during one of their hold-ups. Doug dreams of a better life away from robberies, but, as the FBI draws nearer and nearer, will he stick to the woman he loves or to his longtime crime partner (Jeremy Renner)? Full of adrenaline-pumping chases and strong performances by Jon Hamm, Peter Postlethwaite and Chris Cooper, the movie provides a sturdy way to bring the summer season to an end.
Easy A (Screen Gems): Nathaniel Hawthorne's classic novel "The Scarlet Letter" gets a breezy update in this lightly enjoyable comedy set in the world of high-school beauties, nerds and jocks. Olive (Emma Stone, from "Superbad") is a dedicated student whose conventional attitudes leave her virtually invisible with the cool crowd in her Southern California high-school. It’s not until a rumor about her libidinous abandon starts being circulated in the halls that she’s noticed and, like Hawthorne's Hester Prynne, is metaphorically branded with a bad-girl mark. Unlike her literary counterpart, however, the sharp Olive figures out a way to use her new infamy for her own benefit. Directed by Will Gluck with an eye for fast wisecracks and the comic talents of the vibrant Stone, the film is a sweet and tart surprise.
Soul Kitchen (IFC Films): After tearing through art-house screens with such anguished tales as “Head-On” and “Edge of Heaven,” German-Turkish director Fatih Akin lightens up with this furiously energetic comedy set in the world of scrappy dreamers and tasty dishes. Set in a working-class Hamburg restaurant, the picture follows the misadventures of Zinos (Adam Bousdoukos), who’s scrambling to deal with one problem after another. There’s a girlfriend who’s leaving for China (Pheline Roggan), a new chef with a fiery temper (Birol Unel), and a band that’s going nowhere fast. To top it all, there’s a younger brother (Moritz Bleibtreu) who’s just out of jail and looking for a place to start anew. For a mix of tantalizing dishes and belly laughs, Akin’s on-stop party can’t be beat. With subtitles.
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Mt. Pleasant, New Jersey---Adopt-a-Dog
“Sheba is a four and a half year old Shepherd mix. She seems to like people very much. She comes over when you call her and wags her tail a lot. In fact her little butt wiggles with enthusiasm. She is very, very sweet and a good shelter find. She will be going up for adoption Saturday, December 18th, from 12-2pm to our Special Companions members and after 2pm to the general public.
Looking for a special type of dog? Become a member for $35 for adult dogs or for puppies and for the next three months we will do our best to locate one for you. Please come down to the shelter and ask the staff for more information.”
You love animals, but can’t adopt? Come on down to the shelter and choose the cat or dog that you would like to sponsor. For as little as $20 per month, you can sponsor a pet and help pay for the cost of their care while they stay at the shelter.
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1728 -Congregation Shearith Israel of New York purchases a lot on Mill Street in lower Manhattan, to build New York's 1st synagogue. Construction is completed in 1730.
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