New Aggregate Funding Process---and it connects!
You May have Missed---
######## surrounding the article denotes it is a “press release”
and was not written by Leasing News nor information verified, but from the source noted. When an article is signed by the writer, it is considered a “by line.” It reflects the opinion and research of the writer. It is considered “bias” as it is the writer’s viewpoint.
At the turn of the century, 2000, there were 30 aggregate internet websites that promised to put lessee and lessor together over the World Wide Web, some within an answer within an hour, not only with approval but all rates and terms. It never worked. Eventually, in my opinion, it whittled down to one, Ecologic Leasing Services:
While listed as an “Aggregate Funder” by Leasing News, it perhaps is more “portal” today as the company was originally purchased from the original and changed to what it does today. It is a successful company.
There are three World Wide Web leasing portals, which work in a similar way, but not providing automated approvals in our definition for the category:
As software and the internet with its algorithms have improved, there have been several who have tried to automate matching lessee and lessor on line together, but failed because they never had a program that married a funder with the lessee automatically as perhaps the way Google works: click a subject and there you are. InAjiffy may be successful, as it comes close with speed and service, but in the end, it all depends on the proposals that they received and satisfying the parties involved.
The reason that InAJiffy works on line is that they take requests for proposals, those looking for funding, and list their needs for free, lining them up with vendors, as they call them, who are funders or brokers or lessors. To qualify as a “vendor,” you go through an automated process that includes verifying address, length in business, an application procedure, which is free, then to verify, an automatic telephone call puts the site on line as the final verification, similar to how on line telephone service is verified. It is free and it is an easy process.
InAJiffy is designed for other services, not just finance and leasing, but the system works in the same manner. The vendor chooses from a list of requests for proposals (RFPs) and can view details of any RFP by clicking on it. The vendor then can offer their services by filling a form called a proposal. The step then brings buyer and seller closer.
Vendors can see how many proposals have been submitted, but they cannot see the proposals themselves or who submitted them.
There are two ways that vendors connect with the customers. One is by submitting a proposal, the other is by a click to call button by which the vendor can call the customer’s phone. At this time, there is no cost for submitting proposals and an introductory low price for calling the customer. It is an introductory phase, and fees are to be determined after the beta testing of the system.
To see a sample of how this works, please click here:
Here is a link for lessors and brokers to learn more about how it works:
To sign up for a free introductory offer, this is the web site:
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Happy Birthday Patrick Sponsel
Sharpe Financial Network
Tomorrow, Saturday, July 21, Patrick Sponsel will be 52 years old. He is recovering from his surgery, beginning to receive further treatment toward his recovery. He received many prayers and well wishes, sent to him directly, to Leasing News, as well as on social networks.
While there are many, this one has a definite message that he would like conveyed, as he had stated in the article of July 9th:
From Bernard Whitley, President, BW Transportation Solutions Inc.
"Patrick, you and your family will be in my prayers and my thoughts and I wish you a speedy recovery, I have been in your shoes so please hang in there.
"On a side note, if you are at the age of fifty please go and have a colonoscopy done make that a birthday present to yourself and your family, if you are African American the age, is actually 45 and not fifty.
“Last year in February at the age of 51 I had a colonoscopy done I had put it off for a year, with my wife on my case to get it done I finally caved in, when I woke up from the procedure the doctor informed me that he was sending me to a surgeon without giving me a whole lot of information, to make a long story short I had about 13 inches of my colon removed and about nine inches of my lower intestine removed, all due to a precancerous polyp that was fort anally caught early, a quote from my surgeon during my follow up visit, "I you would have waited one more year you and I would be having a different conversation." I walked out of my surgeon’s office with tears in my eyes because I knew I had dodged a bullet.
"Those words are still stuck in my head to this day, so please take a few hours and get it done the procedure is not as bad as it sounds."
Pray for Patrick Sponsel
Funders Looking for New Broker Business
B* Lessors on CA leases required to be licensed
“RLC Funding is a B+ to A credit funding source with an extremely experienced, flexible staff (formerly Republic Leasing and NetBank). With “app only” to $75,000 and commercial to $125,000 we are a credit based (not asset based) lender offering a range of credit standards and commensurate rates. We do not have volume requirements for broker/lessors but expect proficiency.”
Funders Looking for New Broker Business
KeyCorp plans big cost cuts
The headline comes from Crain's Cleveland Business, who reported "KeyCorp (NYSE: KEY) is aiming to reduce expenses by $150 million to $200 million by December 2013, the Cleveland-based bank announced as it reported second-quarter profits this year were down 9% from the year-ago period.
"Key said its net interest income in the latest second quarter declined 4.6% from a year earlier, to $544 million from $570 million. The second quarter of 2012 included a $13 million reduction to net interest income from the write-off of fees as well as capitalized loan origination costs due to the early termination of leveraged leases. In addition, Key said the decrease in net interest income and net interest margin 'resulted from the continuation of the low-rate environment, contracting the spread between lending rates and funding costs'.”
Key’s noninterest income was $485 million for the second quarter of 2012, compared to $454 million for the year-ago quarter. Gains on leased equipment increased $31 million compared to the same period one year ago, primarily related to the early terminations of leveraged leases. Net gains (losses) from loan sales also increased $21 million from the year-ago quarter. These increases in noninterest income were partially offset by a $14 million decrease in electronic banking fees as a result of government pricing controls on debit transactions that went into effect October 1, 2011, and a $12 million decline in operating lease income.
Six month lease operating income was $67 million June 30, 2011 compared to $42 million June 30, 2012, with the three month ending June 30, 2012 at $20 million, continuing the decline.
Commercial Lease Financing also continues its downward trend
(dollars in millions)
Second Quarter, 2011 $6,094
Tier 1 risk-based capital is now at 12.5%, healthy, but down from 13.29% March 31, 2012 and compared to $13.92% same period June 30, 2011.
Full Second Quarter 2012 Earnings Review:
(This ad is a “trade” for the writing of this column. Opinions
Microfinancial Reports Business Up!
The company specializing in vendor based leasing and finance programs for microticket transactions from $500 to $10,000 going down to $500, and primarily in the under $15,000 range, reports New lease originations in the quarter increased by $5.2 million to $23.9 million as compared to the same period last year.
The Board of Directors of MicroFinancial Incorporated declared a cash dividend of $0.06 per common share payable on August 15, 2012, to holders of record of MFI common stock at the close of business on July 30, 2012. This dividend represents the same amount per common share as the last dividend paid by MFI in May of 2012.
"We are very pleased with the continued improvement in our financial performance in the second quarter of 2012. We realized solid earnings for the quarter of approximately $2.6 million and received cash from customers of over $30 million," Richard Latour, President and Chief Executive Officer said. "Through the first six months of 2012, we have increased the number of lease applications processed by approximately 45% to 35,000 and increased our lease originations by approximately 23% to $45.5 million as compared to the same period last year."
For the six months ended June 30, 2012, net income increased by 7.9% to $4.7 million versus net income of $4.3 million for the same period last year. Net income per diluted share year to date was $0.32 based on 14,635,068 shares versus $0.30 based on 14,495,745 shares for the same period in 2011.
Year to date revenue for the six months ended June 30, 2012 increased 7.9% to $28.9 million compared to $26.8 million during the same period in 2011. Revenue from leases was $19.6 million, up $1.3 million from the same period last year and rental income was $4.7 million, up $0.6 million from the prior period. Other revenue components contributed $4.7 million for the year to date, up $0.2 million from the same period last year. New contract originations year to date were $45.5 million versus $37.1 million through the same period last year.
Total operating expenses for the six months ended June 30, 2012 increased 7.0% to $21.2 million versus $19.8 million for the same period last year. Selling, general and administrative expenses increased by 4.9% or $0.4 million to $8.4 million primarily due to increases in compensation.
Employee . Headcount at June 30, 2012 was 139 employees as of June 30, 2012 compared to 129 at the same date last year. In June of last year, MicroFinancial opened the office of their subsidiary TimePayment Corporation office at 2801 Townsgate Road, Suite 101, Westlake Village, California, on the edge of Los Angeles. The idea was to give better service to the West Coast.
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Jennifer Stamps named Vice President - Equipment Finance Sales at BMO Harris Equipment Finance, working out of Austin Texas. Previously she was vice-president, Siemens Financial Services, covering TX,LA,OK,AR (May, 2007-April, 2011), vice-president, CIT Equipment Finance (march, 2006-April, 2007), senior vice president, GE Commercial Finance (June, 2004-February, 2006), marketing director, Boeing Capital Corporation (July, 2000-June, 2004), principal, Creative Business Solutions (July,1994-June, 2000), Director-Business Development (GE Capital(1987-1988). The University of Texas at Austin - The Red McCombs School of Business BBA and MBA, Finance and Accounting http://www.linkedin.com/in/jenniferstampsequipleasing
Massachusetts Court Upholds DLL’s Forum Selection Clause
by Tom McCurnin, Esq.
Everyone probably is familiar with the role of a forum selection clause in an equipment lease, as National companies do business in most of the 50 States but litigate smaller matters to judgment in their home State with local counsel. What if a lessee sits back and lets the judgment get entered, and then the lessee commences its own action in its home State?
The answer ought to be that the lessee’s second action should be dismissed—And that’s exactly what happened in Financial Planning Alternatives, Inc. v. De Lage Landen Financial, 2012 WL 2588553 (Mass. App.Div.2012). There DLL leases some copiers to Financial Planning Alternatives, a self-described “sophisticated entity in the business of financial planning for individuals.” When Financial Planning failed to pay, DLL commenced an action in Chester County, Pennsylvania to recover the balance of payments on the lease. The action was filed in Pennsylvania pursuant to a forum selection clause contained in the equipment lease. Judgment was entered in late 2010. Financial Planning filed its own suit within a few weeks of that Judgment in Massachusetts.
DLL filed a Motion to Dismiss the suit based on the forum selection clause, and should have prevailed and while the Court ultimately dismissed the action, it did so with some gratuitous comments about the propriety of such forum selection clauses. The Court stated:
“While recognizing . . . established law that compels the decision in this matter, we are not unmindful of the inequities potentially created by De Lage's use of a boilerplate forum selection clause. The standard bearer for the use of forum selection clauses in finance equipment leases with small businesses was, for many years, Leasecomm, which entered into a consent judgment with the Massachusetts Attorney General . . . abandoned its forum selection clause and agreed to institute its collection suits where the consumer resided or did business.”
But after that rant, the Court struck down the Complaint and entered Judgment for DLL.
There are few lessons here for leasing professionals, except to say that the use of a forum selection clause is advantageous for those companies located in a single State, but where they do business in multiple far-off States. It is uneconomical to litigate small dollar copier cases in other States with collection counsel that might not understand the leasing issues, and safer to use local counsel where the lessor does business. The Court got it right.
Visit our Web Site at www.bkolaw.com
Leasing Cases by Tom McCurnin
BSB Leasing, Inc. is pleased to announce a new division which will provide additional financial products to the Broker Community.
The new division is BSB Capital Access and is providing B2B Working Capital Loan and Merchant Cash Advance products to the entire Broker Community. This division will be managed by Randy Propeck as General Manager. Randy has been active in the Broker Community for over 25 years in various capacities throughout his career in the equipment leasing industry.
BSB stands for "Broker Serving Broker" and we have earned the trust of our partner brokers over the last 30 plus years of serving and supporting the Broker Community. These new products will enhance and expand the outstanding equipment leasing funding services we currently offer and will allow our broker partners to earn more commissions by offering more products to their client base.
For more information about these exciting new products, please contact Randy Propeck at 800-845-3372 x 334 or direct at 303-376-4667."
Beige Book--Loan Demand Grew Modestly
Contacts in the New York, Richmond and Kansas City Districts reported that credit standards remained largely unchanged. Cleveland reported some loosening of auto lending guidelines, while San Francisco indicated credit standards were somewhat restrictive for businesses and consumer loans. Philadelphia, Kansas City, Dallas, and San Francisco noted general improvements in credit quality. Delinquency rates held steady or declined in the New York and Cleveland Districts. Banking contacts in the Cleveland, Atlanta, Dallas, and San Francisco Districts noted stiff competition for quality loan customers. The Chicago District noted uncertainty over the effects of U.S. fiscal policy actions was reducing their customers' demand for credit. Likewise, Dallas reported a slightly more pessimistic outlook than the previous Beige Book due in part to European debt issues and regulatory and political uncertainty.
Overall loan demand grew modestly in most Districts. New York indicated no change, while Richmond observed flat-to-weakening loan demand. Chicago, Kansas City, Dallas, and San Francisco noted increased commercial and industrial lending, but lending in that sector decreased somewhat in the New York District and was characterized as soft in Cleveland and Atlanta. Most Districts reported an increase in mortgage lending, with Dallas noting especially strong demand and a healthy backlog of loans. Refinancing of mortgage loans was steady or increasing in New York, Cleveland, Richmond, and Chicago, but Philadelphia noted a recent slowdown. Kansas City and Dallas noted some improvement in lending for agriculture and commercial real estate. The Atlanta, Chicago, Dallas, and San Francisco Districts observed steady-to-increasing demand for consumer credit, especially for auto loans, while consumer loan demand was somewhat weaker in Kansas City and little changed in Cleveland.
Summary of Report:
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United Capital --- Two Firehouse Subs® Operators
HUNT VALLEY, MD – United Capital Business Lending, a national business lender specializing in franchise finance, announced today that it provided $2,050,000 in financing to the largest Firehouse Subs® franchisee, DKSS Subs, LLC. United Capital refinanced 12 existing locations for the Florida based operator and will provide funding to open two additional restaurants.
In a separate transaction, United Capital established a development line of $900,000 for Firehouse Subs® franchisee Impact FHS Restaurants II, LLC, allowing the operator to open three new restaurants. With the additional locations, the Florida based franchisee will own and operate nine Firehouse Subs® restaurants.
“United Capital recognizes the strong performance and growth of the Firehouse Subs® system,” says Andrew Jones, vice president and business development officer for United Capital. “We are committed to working closely with Firehouse Subs® franchisees to provide financing for new store development, acquisitions, remodels and debt refinancing.”
United Capital Business Lending is a subsidiary of BankUnited (NYSE: BKU), the largest bank headquartered in Florida with over $12 billion in assets.
In addition to Firehouse Subs®, the United Capital team has financed franchisees for Subway®, Popeyes®, Denny’s®, Dunkin’ Donuts® and Five Guys® Burgers and Fries among others.
For information about financing for franchise acquisition, new unit development, reimaging or debt refinancing, call United Capital at 866-218-4793 or visit the company’s website at www.unitedcapitalbusinesslending.com.
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NY Supreme Court Rules in Favor of Northern Leasing Systems
Court Grants Motion to Decertify Class and Denies Plaintiff’s Motion
New York, NY, – Northern Leasing Systems, Inc. (www.northernleasing.com), the leading provider of third-party micro-ticket equipment leasing services in the United States, today announced the New York Supreme Court has ruled in favor of the company, granting the company’s motion to decertify a class of hundreds of thousands of merchants in a breach of contract class action brought against the company by four lessees. Judge Martin Shulman had previously certified the class in April 2009. Last week’s ruling by Judge Shulman follows a New York State Appellate Division’s September 2011 decision to reverse summary judgment as to liability on the breach of contract claim.
“Northern Leasing has always prided itself on the fairness of our business practices and the open dialogue we strive to maintain with our merchants,” said Jay Cohen, chairman and chief executive officer of Northern Leasing Systems, Inc.
“This opinion, like the Appellate Division’ decision in 2011, has vindicated our confidence in a favorable outcome to our case,” Mr. Cohen continued. “We have always felt that the plaintiffs’ claims were without merit.”
The plaintiff’s claim was essentially that the lessees thought the four-page lease in the form of a booklet was, in reality, only one page long and therefore Northern Leasing Systems’ enforcement of the terms on the other three pages constituted a breach of the contract. In March 2010 Judge Shulman granted summary judgment to the plaintiffs under that theory.
However, in September 2011 the New York State Appellate Division unanimously reversed that decision stating that “questions of fact exist that preclude granting plaintiffs summary judgment on the breach of contract claim.”
“It will now be necessary to determine what each plaintiff’s lease is comprised of and whether it was reasonable for any plaintiff to believe the document consisted of only one page,” reads the decision, handed down July 13 by Judge Martin Shulman.
“Again, this necessarily entails individual inquiries into the circumstances of each plaintiff’s lease execution. Clearly, this fact-specific inquiry cannot be determined from a review of the lease’s language. And as a result of the Summary Judgment of the Appellate Division decision, individual issues now predominate over common questions of fact or law. As such, the motion to decertify the class must be granted,” he said.
The court also ruled against the plaintiff’s motion for summary judgment on a previously unpleaded unconscionability claim as to breach of contract.
“This court cannot help but conclude that this claim is ‘coming from out of nowhere’ in an attempt to prevent class decertification,” said Judge Shulman.
About Northern Leasing Systems, Inc
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