Monday, July 2, 2007
Headlines--- Next Edition: Monday, July 9th ######## surrounding the article denotes it is a “press release”
-------------------------------------------------------------------- Next Edition: Monday, July 9th
Maria Martinez-Wong becomes acting editor as Kit Menkin goes on vacation without his lap top. -------------------------------------------------------------- Classified Ads---Senior Management
Atlanta, GA To place a free “job wanted” ad here, please go to: For a full listing of all “job wanted” ads, please go to: -------------------------------------------------------------- PCB Leasing sale---Let’s correct some rumors by Christopher Menkin
Actually got side tracked from this as Pacific Capital Bank Senior Vice-President Paul Menzel, CLP, was adamant that he was not lying, just not telling the truth because it wasn’t “official.” The direct Nevertheless, both Paul and I were just doing our job as we saw it, this time we were on opposite sides of the table. It was then a handicap to let readers know the “inside.” Here is some of it: It is not true that Jim Merrilees, CLP, left to join QuikTrak as president because the PCB credit scoring system was not producing the desired results. He was presented with a great opportunity and took it. He obviously also had knowledge that the division was for sale. Merrilees is like a cat, he always lands on his feet. One lucky fellow. And he has a few lives left. It is true that Alta was selected because they had a consulting relationship revising PCB's credit scoring system after it became evident that the credit scoring system was not producing the desired results. Alta Managing Principal John C. Deane, in a press release, said “...a number of factors contributed to the efficient and successful sale: (1) senior management of this lease origination unit is seasoned and well regarded for its positive track record; (2) the transaction moved to an exclusive basis very quickly because the consultants are known and trusted; and (3) Alta provided due diligence--well beyond industry norms to include a thorough analysis of every facet of operations, business culture, models, products, practices and systems. He said their working knowledge in this industry was invaluable.” Leasing News said the selling price was a “steal:”” ...purchase price equal to 104.7643% of the Bank's net investment in the equipment lease assets. The aggregate purchase price is estimated to be approximately $280 million.” Dean told Leasing News,” the gain on sale was approximately $20 million. “The fact that the buyer was well known and highly thought off was also a major consideration. LEAF has an excellent reputation and their performance in this transaction supported that reputation. Leasing News believes the sale price would have been higher if there had been a competitive sale. The Alta Group press release mentioned sending the offer to a select group for a short period of time, but “We represented the seller in this transaction; it was the seller's decision to consider a pre-emptive bid (we supported that decision),” “The fact that Alta and Fairview, both industry experts, were the advisors in this transaction was a material value add in my opinion I disagree with your characterization of the deal as a ‘steal’ or ‘take it or leave it’. In fact the seller received a substantial premium as they have publicly reported. We were directly involved in the price discussions and negotiations. It is our opinion that the final price and conditions were a near perfect balance for the interests of the seller and the buyer.” Leasing News asked Crit Dement, CEO of Leaf Financial to make Regarding the $100 million in new business a year, Leasing News was told: “I think what you missed in that statement is that LEAF expects future additional originations to be in excess of $100M. But as the SEC statements show, the existing portfolio LEAF purchased was for $279M+. Here’s the exact quote from the press release. “The new LEAF Third Party Funding Group will continue to operate from Santa Barbara, CA and is expected to originate in excess of $100 million of additional lease assets for LEAF investment vehicles in fiscal 2008.” Leasing News still does not understand that from the SEC filings, Pacific Capital Leasing in the thousands: No one is talking, including the officers who have a vested interest in the SBBT remuneration plan, but PCB Leasing is worth more than $20 million, as was NetBank Finance Leasing and even Marlin Leasing, even though their sales are reportedly down. The Leaf Financial press release did not mention the Alta Group. “FairView Advisors specializes in Mergers and Acquisitions, and finding private equity and debt financing as well as strategic advisory work for companies in select industries, including financial services, biomedical and healthcare, manufacturing, information technology, telecom and wireless as well as sports and media. The company is headquartered in Naples, Florida with offices in New Jersey, Pennsylvania and California. For more information visit the company's website is “We each agreed that each of us would handle our press release separately, “ John Dean responded. “Nothing nefarious.” Very interesting from Dean that the Alta Group wants to do more of these type situations. “Alta is active in providing advisory and consulting services to both buyers and sellers of equipment leasing and financing companies and portfolios both in the U.S. and worldwide. A few examples: It is true that each of the groups sent out their own press release, including Pacific Capital Bank, which was different than Leaf’s. Please also note Sr. VP Paul Menzel, CLP’s, comment about the role of the Alta Group in the press release that follows. As to Santa Barbara Bank and Trust being a collection of community banks, that is also true and the growing direction of the leasing division had perhaps “outgrown” the bank. Here is a report on http://leasingnews.org/PDF/KBW.pdf Before going into the Alta Group press release, it should be pointed out just like McCue and NetSol “merger,” these players all know each other from their networking, volunteering, committee assignments, and friendship made through the Equipment Leasing and Finance Association. It again --------------------------------------------------------------- The Alta Group’s Industry Knowledge Enables Efficient Sale of Bank Leasing Unit Transaction closes in just 12 weeks. Alta consultants’ due diligence, contacts and knowledge set stage for win-win deal
THEALTA GROUP.COM—June 27, 2007—The Alta Group, international consultants in equipment finance and leasing, demonstrated its commitment to merger and acquisition advisory services in its successful management of the sale of Pacific Capital Bank’s small-ticket leasing unit last week to LEAF Financial Corporation. The sale closed June 22, only 12 weeks from the time that Alta was engaged by the bank to represent them. Alta Managing Principal John C. Deane said a number of factors contributed to the efficient and successful sale: (1) senior management of this lease origination unit is seasoned and well regarded for its positive track record; (2) the transaction moved to an exclusive basis very quickly because the consultants are known and trusted; and (3) Alta provided due diligence--well beyond industry norms to include a thorough analysis of every facet of operations, business culture, models, products, practices and systems. He said their working knowledge in this industry was invaluable. Alta issued the opportunity to a select group of targeted potential buyers and within days LEAF Financial Corporation, of Philadelphia, Pa., made an attractive bid and the seller suspended discussions with other bidders, Deane said. The $280 million transaction included Pacific Capital’s small-ticket equipment leasing portfolio, along with operations, personnel and management systems. “The bank wanted to reposition its lines of business to core banking and relationship lending; the equipment leasing portfolio was among the lines of businesses it planned to exit,” Deane said. LEAF Financial Corporation, of Philadelphia, Pa, welcomed Paul J. Menzel, CLP, and his team into the new organization now called the LEAF Third Party Funding Group, which will remain based in Santa Barbara, Calif. “Alta was a godsend because they provided the leasing industry perspective, expertise and contacts to Pacific Capital Bancorp that the bank would otherwise not have had,” said Menzel, who led the bank leasing unit for 10 years. “Their knowledge and understanding was crucial to the success because they developed a strategic offering, rather than just a portfolio of financial assets. They presented the opportunity in a way that the industry would understand.” Menzel also noted that considering the size of the deal it was very fast and smooth. “I heard this from all parties involved.” Alta was selected over traditional investment banking firms to serve as advisors because Pacific Capital realized it could derive strong strategic value when potential buyers understood the true value of this unit, Menzel said. It was a good strategic fit for LEAF, which he characterized as both entrepreneurial and professional and with a tremendous desire to grow. Pacific Capital Bank reports $7.4 billion in assets, including a wide array of financial products. The Monitor noted that had the transaction closed before the Monitor 100 ranking was published, the combined assets would have put LEAF at #51, rather than #65, as reported in this year’s ranking. About The Alta Group: The Alta Group is a global consultancy serving equipment leasing and finance companies, investment professionals, manufacturers, banks and government organizations. Founded in 1992, The Alta Group supports clients in North America; Latin America; Western, Central and Eastern Europe; Australia and China. For more information, please visit www.theAltaGroup.com. (Sean Halladay, Senior Partner of the Alta Group is on the Leasing News Advisor Board. It should be noted that Paul Bent, Alta Group partner, is a frequent contributor to Leasing News. In addition,
### Press Release ########################### Brad Christensen—Remember Me?
Brad Christensen sent out a flyer to all leasing brokers wanting them to remember the former Jim Harris’s Alco Leasing, Portland, Oregon, now part of the Leaf Financial Corporation and using that name. They specialize in the $100,000 to $1,000,000 “consistent and ‘common sense’ approach to underwriting your transactions.” “You may have heard the news on the recent acquisition by LEAF “Call Brad Christensen on your next deal.” 503-624-7377 -------------------------------------------------------------- Former Marlin Leasing VP Broker Division Michael Bennie
Not true that Mike Bennie (etc.) is going to Pacific Capital Bank Leasing, nor is it a large company -------------------------------------------------------------- IFC Credit loses another NorVergence lease At the time NorVergence filed bankruptcy there were 1600 unassigned leases, and perhaps up to 3,000 not connected at all yet to the NorVergence “telephone network.” At one time John Estok, President of the small ticket division of IFC Credit Corporation, Morton Grove, Illinois, tried to claim those not connected. Later the FTC called the company on it, and when Leasing News questioned IFC Credit, their attorney threatened to sue us. This is a typical lease and why IFC Credit would take the lessee to court makes no common sense, as the testimony in the case shows that there are not only questions about signing of the lease, There certainly is more to the story, and it is told in the court judgment against IFC Credit: http://leasingnews.org/PDF/Burton%20Memorandum%20Decision.pdf Case is dismissed: Questions may be directed to Steven D.Cundra, Roetzel & Andress, Washington, D.C., who represented Burton Industries.
-------------------------------------------------------------- Story Credit List Up-dated
These companies specialize in "C" and "D" credits, often news businesses, or businesses where the principal(s) have Beacon score around 600 or previous difficulties; meaning to become comfortable with the credit and financial situation you need to learn the "story" to make a positive decision, often requiring further security, shorter term, or additional guarantors. Many of these companies may also be a "B," but appear otherwise without the "story" to understand the full financial picture. (To qualify for this list, the company must be a funder and not a "Broker/Lessor" or "Super Broker/Lessor", along with an acceptable Better Business Bureau Rating and no history of complaints at Leasing News. We reserve the right to not list a company who does not meet these qualifications.) We encourage companies who are listed to contact us for any change or addition they would like to make. Adding further information as an "attachment" or clarification of what they have to offer would be helpful to readers is very much encouraged. To see all lists, please go here: -------------------------------------------------------------- Largest Banks, Thrifts, Mortgage Lenders
-------------------------------------------------------------- Leasing Industry Help Wanted
EFD Marketing Specialist
---------------------------------------------------------------- Top Stories--June 25-June 29
Here are the top ten stories most “opened” by readers last week: (1) Paul Menzel, CLP: “I didn’t lie” (2) Huntington Bank sued by leasing companies (3) Notice: Two CLP’s Calculators (4) Pacific Capital Bank stock-Uh-OH!!! (5) Leasing Industry remains “sluggish” (6) Leasing 102 --by Mr. Terry Winders, CLP (7) Hope Bob Jacobson and family are okay (8) $600,000 CMC Plea Bargain (9) Sales makes it Happen---by Steve Chriest (10) (tie) (10) (tie) Not counted due to technical difficulties, but highly read:
-------------------------------------------------------------- New Address/Telephone for ELFA Effective today, July 2, 2007
Equipment Leasing and Finance Association Important! Equipment Leasing and Finance Association, Inc. eMail and web address still the same -------------------------------------------------------------- Leasing 102 by Mr. Terry Winders, CLP
Co-Lessee vs. Personal Guarantee We lease to a large number of small and medium size companies where the principle owner or a small group of individuals controls the company. In these transactions it is wise to request guarantees because as a lease we are precluded from requesting additional collateral or placing restrictive covenants, or indentures, in the lease. While this is acceptable in bargain purchase option leases, there is no language in a lease agreement that allows for these issues. Therefore additional documents are required or we move on to requesting additional payments or security deposits. When it is not possible to obtain additional monies to secure the transaction we request personal guarantees. The usual reason they are requested in good credit companies is to allow the owners complete freedom of movement of their assets. Without the guarantees and total control over the company it is possible to transfer all the companies’ assets out of the companies name into their personal capital and bankrupt the shell of the remaining company. This would leave the lessor holding the bag with the exception of the leased equipment. Personal guarantees can some times be more of a burden than a help because some States require you to first take all actions against the lessee including repossession, sale and litigation for the deficiency prior to taking any action against the guarantors. In these States it is better to request a business guarantor to sign as a co-lessee instead of a guarantor. This allows you to request the co-lessee to perform all of the requirements of the lessee including requesting past due payments, providing insurance coverage and paying any assessed taxes. The language for a co-lessee is usually better on a separate document rather than having them sign on the lease itself. This allows for a clear presentation of their obligations such as:
This is only part of the Co-Lessee document but it shows the Co-Lessee that they have complete responsibility for the lease and it frees you to press you claims against both parties. ### Please note another column by Mr. Winders regarding personal guarantees: "GUARANTIES: For Your Consideration" "More on Equipment Guarantees" Previous #102 columns: Mr. Terry Winders has been a teacher, consultant, expert witness for the leasing industry for thirty years and can be reached at leaseconsulting@msn.com or 502-327-8666.
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---------------------------------------------------------------- Yahoo gains on Google
According to www.netapplications.com, "...May 2007 results show Yahoo at 11.37% of worldwide search market share, up from 9.87% in April. Yahoo hasn't been at this level since October of 2006. "So who took the loss to match Yahoo's gains? Google. Their US search engine has fallen from 53.38% in April of worldwide search market share down to 51.71% in May. The loss almost perfectly matches Yahoo's gain. The bigger questions are what is Yahoo doing now to regain this share, and can they continue?" The competition is good for the users. There are also many other browsers active in the marketplace, but none in the number of users as Google and Yahoo. ---------------------------------------------------------------- Internet Closing In On TV as 'Most Essential' Medium www.internetnews.com
The Internet has already surpassed television and other media as the "most essential" medium, depending on what age group you fall under. The new Internet and Multimedia 2007 report by Edison Media Research surveyed consumers 12 and older earlier this year and found the Internet (33 percent) is gaining rapidly on television (36 percent) as "most essential." In a similar study, just five years ago, TV led the Internet by a wide margin, 39 to 22 percent. Radio netted a 26 percent "most essential" response in the 2002 study. The Internet is rated most essential by a majority in the 12 to 44 year old age groups; while the older age brackets skew toward television as most essential giving TV the overall edge -- for now. "With Web 2.0 and access to the Internet on different devices, like the iPhone where you can have the Internet in your pocket, there's no way for interest in the Internet to go anywhere but up," Jason Hollins, vice president at Edison Media Research, told internetnews.com. "In almost every category we surveyed, the Internet has doubled or tripled where in consumer's minds it bleeds into all facets of their lives." Newspapers won dubious top marks (35 percent) for "Least essential" medium. The Internet, which was tops at 33 percent in 2002, was named by only 24 percent of those surveyed as "least essential." Radio and television were each named least essential by 18 percent of those surveyed. Radio and TV still tops in some categories. But the results weren't all a slam-dunk for the Internet. For example, when it comes to learning about new music, radio remains far and away the leading medium, listed by 48 percent of respondents versus the Internet (25 percent) and television (12 percent). But the Internet only had a 9 percent share in 2002, while radio has fallen from 63 percent in 2002. Television still has a firm grip (62 percent) as the top first source people turn to in the event of a major news story. Again, the Internet has made incursions, eating into what was a 74 percent response for television in 2002. The Internet went from 8 to 18 percent in 2007 as the first source people turn to for coverage of a major news story. Edison said it conducted telephone interviews over the course of two months, January/February 2007, from a random national sample of 1,855 Arbitron Fall 2006 survey diary keepers, age 12 and older. Hollins noted that the "beauty and curse or research" is that you stick with the same wording to try and ensure a high degree of confidence in the results and where the trends are heading. "Today there's no confusion about what you mean when you say 'Internet' or 'TV'," he noted. "But in 2012, if we ask about television, will people still think of it as a box in the living room you sit in front of, or will television and the Internet morph into each other?"
--------------------------------------------------------------- NACM Credit Manager Index Positive
Columbia, Maryland: — The seasonally adjusted Credit Manager’s Index (CMI) rose a modest 0.5% in June as a 1.1% increase in the manufacturing sector offset a 0.2% decrease in the service sector. Results throughout the survey showed mostly small changes from the previous month. “The decimated housing market once again weighed heavily on suppliers of building materials in the service industry,” said Dan North, chief economist with credit insurer Euler Hermes ACI. “This condition seems likely to continue, given an increasing supply of homes for sale, sharp declines in housing permits and starts and the unprecedented fall of median year-over-year house prices for 10 consecutive months. Somewhat surprisingly, the manufacturing sector continues to expand on the back of an economy which continues to grow, albeit slowly.” Overall the report was moderately positive, reflecting the state of the economy as a whole.
The manufacturing sector rose 1.1%, chiefly as a result of improvements in sales and bankruptcies. Indeed, one respondent noted that they “have had no customer bankruptcy…” and “…no…collections.” “However,” said North, “it is important to note that the data was mixed as only six of the 10 components rose, and that comments from respondents were somewhat more inconsistent than usual, indicating lack of a definitive consensus opinion.” The service sector fell 0.2% as modest improvements in new credit applications and the amount of credit extended were outweighed by small decreases in seven of the other eight components. “Once again, the dismal housing market was cited by some respondents as the chief driver of weak performance,” North noted. One respondent stated that, “The housing market is very soft, creating less demand for building materials.” Another noted that, “Regional builders continue to suffer in the deflated housing market,” while a third cited the housing market as the reason its “profits are down.” On a year-over-year basis, the combined index was unchanged at 57.2%, remaining well above the 50 level indicating economic expansion. The service sector fell 1.7%, perfectly offsetting the rise in the manufacturing sector of 1.7%. “Certainly part of the relative weakness in the service sector stems directly from the decaying housing market which has dramatically affected suppliers of building materials,” North said. “The manufacturing sector index, standing at a solid 58.3%, has been supported by an economy which continues to expand, albeit at a slowing pace.” The CMI, a monthly survey of the business economy from the standpoint of commercial credit and collections, was launched in January 2003 to provide financial analysts with another strong economic indicator. The CMI survey asks credit managers to rate favorable and unfavorable factors in their monthly business cycle. Favorable factors include sales, new credit applications, dollar collections and amount of credit extended. Unfavorable factors include rejections of credit applications, accounts placed for collections, dollar amounts of receivables beyond terms and filings for bankruptcies. A complete index including results from the manufacturing and service sectors, along with the methodology, is attached. A complete view of the index can be viewed online at http://www.nacm.org/resource/press_release/CMI_current.shtml . The National Association of Credit Management (NACM), headquartered in Columbia, Maryland supports more than 22,000 business credit and financial professionals worldwide with premier industry services, tools and information. NACM and its network of Affiliated Associations are the leading resource for credit and financial management information and education, delivering products and services which improve the management of business credit and accounts receivable. NACM's collective voice has influenced legislative results concerning commercial business and trade credit to our nation's policy makers for more than 100 years, and continues to play an active part in legislative issues pertaining to business credit and corporate bankruptcy. www.nacm.org ### Press Release ########################### OneWorld Leasing Adds Two New Members To Its Ranks
OneWorld Leasing Inc. (OneWorld), a national, member-driven business cooperative for independent equipment leasing and finance companies, has added Target Equipment Leasing, Inc. (Target) of Farmington Hills, Michigan and Leasing Resources, Inc. (LRI) of Wichita, Kansas to its membership. “This brings our membership to twenty lessors and brokers” said Ira Romoff, President of OneWorld. He continued, “While our members are small individually, collectively we cover the entire U.S. and will lease and finance in excess of one quarter $Billion worth of equipment in 2007.” Linda Jolicoeur founded Target in 1985 and specializes in small ticket leasing for the franchisee market. This has led Target into financing trucks, construction, machinery and general office equipment. Linda is an experienced leasing professional and has been an influential leader in the tax arena in Michigan. “I am pleased to be part of the OneWorld family and look forward to expanding my already wide range of funders,” said Ms. Jolicoeur. Bill Mapes began LRI in 1989 and 80% of his business relates to agriculture. He is a Certified Machinery & Equipment Appraiser and acts as a Super Broker for those in need of Ag financing. Bill is a big addition to OneWorld and he states “I look forward to my membership in OneWorld and helping the cooperative grow while LRI also grows.” OneWorld Leasing, Inc. is a business cooperative that helps independent leasing and finance companies further their common interests and increase their marketing strength and funding power. Its mission is to leverage the volume of the co-op in order to provide its members with services and opportunities that might not be available to them individually. Those services and opportunities include greater access to funding and revenue streams, business services, national vendor programs, and best practice activities. OneWorld operates on a cooperative basis and is owned and controlled by its members. Its motto is STRENGTH IN NUMBERS.
Ira Z. Romoff Full list of members of the leasing co-op:
### Press Release ########################### Nitzsche/Gutmann new VP's U.S.Bank Equipment Finance
CLEVELAND, Ohio and ALTON, Ill. (June 29, 2007) – U.S. Bank Equipment Finance has named Stephen Nitzsche and Daniel Gutmann as vice presidents and area managers for the capital equipment group. Nitzsche is based in Cleveland and covers the central and northern Ohio, western Pennsylvania and western New York markets. Gutmann, based in Alton, Ill., covers southern Indiana, western Kentucky and central and western Tennessee. Both have responsibility for new business development and sales, providing equipment financing solutions to the middle-market through large-corporate companies in their markets. Nitzsche has more than 20 years of experience in the equipment leasing and finance industry. He worked previously with The CIT Group Equipment Finance, National City Leasing Corporation, Firstmerit Corporation, and Ameritrust Company NA. He holds a bachelor’s degree from Ohio Wesleyan University, Delaware, Ohio. Gutmann, an 18-year veteran of the financial services and equipment leasing and finance industries, was most recently with the community banking group at U.S. Bank. Prior to U.S. Bank he worked at Commerce Bank, N.A., General Electric Corporation and Mercantile Bank of Illinois, N.A. He earned a bachelor’s degree from Southern Illinois University at Carbondale and is a graduate of the School of Banking at the University of Oklahoma. U.S. Bank Equipment Finance, one of the largest bank-affiliated equipment finance companies in the nation, has been providing quality equipment finance solutions for more than 35 years. Based in Portland, Ore., it is a major funding source for companies in virtually every industry sector nationwide. Visit U.S. Bank Equipment Finance online at www.usbank.com/leasing. U.S. Bank Equipment Finance is part of U.S. Bancorp (NYSE: USB). With $221 billion in assets, U.S. Bancorp is the parent company of U.S. Bank, the 6th largest commercial bank in the United States. The company operates 2,498 banking offices and 4,837 ATMs, and provides a comprehensive line of banking, brokerage, insurance, investment, mortgage, trust and payment services products to consumers, businesses and institutions. Visit U.S. Bancorp on the web at www.usbank.com. ### Press Release ########################### Stump and Preston join U.S. Bank Equip. Machine Tool Finance
DENVER and ATLANTA — U.S. Bank Equipment Finance has named Charles Stump and Dennis Preston relationship managers for its machine tool finance group. Stump, based in Denver, will cover the Colorado and Utah markets. Preston, based in Atlanta, has responsibility for supporting distributors and clients in the southeast. Stump is a 16-year veteran of the leasing and finance industry, having worked at Key Equipment Finance, Lewan and Associates, Inc, Newcourt Financial Services, and AT&T Capital Leasing Services. He earned his bachelor’s degree from the University of Texas of Permian Basin and can be reached at 720-493-1576. Preston has worked in the machine tool leasing and finance industry for 14 years. Most recently he worked for Wells Fargo Financial Leasing and prior to that Telmark Leasing, LLC, The CIT Group, and Okuma Financial Services. He holds a master’s degree from Kennesaw State University in Kennesaw, Ga., and a bachelor’s degree from Framingham State College, Framingham, Mass. Preston can be reached at 770-926-8099. “We’re pleased to add two very qualified individuals to our sales force,” said Ken Rector, executive vice president of the machine tool finance group. “Both Chuck and Dennis have worked in the commercial finance arena for many years and will use their experience and professional approach to provide customer service that exceeds expectations.” ### Press Release ########################### 95% of Respondents Say Equipment Finance Aids Small Business Growth Strategies Arlington, VA——The Equipment Leasing and Finance Association (ELFA) releases the results of its eighth annual survey of the U.S. Small Business Administration’s (SBA) State Small Business Person of the Year winners about their equipment financing methods and reasons for financing equipment. Of the respondents from among 50 U.S. state winners, 95 percent agree that financing equipment is a good business strategy for meeting the demands of small businesses, and more than half (53 percent) currently finance equipment for their own businesses. The group of Small Business Persons of the Year surveyed by ELFA represents outstanding small businesses recognized by the SBA in each of the 50 U.S. states. The winners are selected on their record of stability, growth in employment and sales, financial condition, innovation, response to adversity and community service. “ELFA’s survey of SBA winners represents the best of small business owners in the country,” said Ralph Petta, Vice President of Industry Services, ELFA. “Their acknowledgement of the importance of equipment financing to the success of their small businesses should be a significant consideration for other small firms in making equipment acquisition decisions.” Among key findings: • Office equipment is the top equipment type financed this year, as it has been for the last six years, along with computers, both with 21 percent of respondents • 47 percent of survey participants finance through equipment finance companies, 32 percent through banks, and 11 percent through manufacturers’ finance programs • Asset management and lower cost were the top benefits of equipment financing through loans, with each cited by 58 percent of respondents • Ability to have the latest equipment, consistent expenses in budget planning, convenience, and help in managing company growth were the top benefits of equipment financing through leasing, with each cited by 53 percent of respondents. “The survey results show that the SBA State Business Persons of the Year understand the benefits small businesses can derive from financing their equipment needs,” said Valerie Hayes Jester, ELFA Chair and president of Brandywine Capital Associates, Inc., West Chester, PA. “Capital allocations are at a premium for small businesses, which explains why they finance equipment twice as much as buy it outright. Equipment financing provides flexible options for them to access the equipment they need to be competitive and grow their businesses.” The Equipment Leasing and Finance Foundation is currently preparing a new in-depth study on equipment financing, “Propensity to Finance.” This survey will provide a more rigorous detailed analysis of commercial users of equipment finance with larger survey samples consisting of firms of all sizes and categorized by market types and their disposition to financing equipment. It is scheduled for release in August. About the Equipment Leasing and Finance Association The Equipment Leasing and Finance Association (ELFA) is the trade association representing financial services companies and manufacturers engaged in financing the utilization of and investment in capital goods. ELFA members are the driving force behind the growth in the commercial equipment finance market and contribute to capital formation in the U.S. and abroad. Its over 750 members include independent and captive leasing and finance companies, banks, financial services companies, broker/packagers and investment banks, as well as service providers. For more information, please visit www.elfaonline.org ELFA is also the premier source for statistics and analyses covering the equipment finance sector. To access ELFA's comprehensive industry information, please visit ### Press Release ########################### Equipment Leasing & Finance Association Files Amicus Briefs in Cases ELFA Asks Courts to Affirm Established Legal Principles Underlying Equipment Finance
Arlington, VA——The Equipment Leasing and Finance Association (ELFA) has filed two separate amicus curiae or “friend of the court” briefs for the purpose of affirming established major legal principles underlying the equipment leasing and finance industry. In both briefs, ELFA argues that the correct tax treatment of leaseback transactions -- and commercial leasing transactions in general -- are cast into doubt by a recent federal district court decision. ELFA also filed motions asking the courts in the two cases to grant the association leave to file the amicus briefs. ELFA filed its motion and amicus brief before the United States Court of Appeals for the Fourth Circuit in support of the appellant, BB&T Corporation, in its appeal of a January 2007 decision of the U. S. District Court for the Middle District of North Carolina. ELFA believes that the BB&T case raises issues that upend established legal principles potentially impeding capital formation. Specifically, the District Court decision ignores the historical case law standard applied to determine whether the form of sale/leaseback or lease/leaseback transactions will be respected for federal income tax purposes which have been financial staples of commercial finance in the U. S. “ELFA believes the district court’s legal analysis on BB&T ignores established case law with significant unintended consequences,” said ELFA President Kenneth E. Bentsen, Jr. “We are asking the courts to affirm the established major legal principles underlying the equipment finance industry. The court’s analysis casts into doubt long established tax treatment of lease-back transactions and commercial leasing transactions in general, undermining reliance on our U.S tax laws and potentially impacting the cost of capital," Bentsen said. ELFA contends that the court’s analysis casts into doubt the correct tax treatment of leaseback transactions and commercial leasing transactions in general. The District Court improperly recharacterized the transaction at issue in a manner inconsistent with established law and precedent and thus adopted a standardless test that will prevent leasing companies from determining whether the form of lease transactions will be respected for tax purposes. ELFA believes the District Court should have followed the established precedent and at a minimum made a factual inquiry to determine whether the rights and obligations imposed on the taxpayer had economic substance. ELFA urges reversal of this decision or in the alternative that that case be remanded to the district court with directions to apply the economic substance analysis as established by the decisions of the Supreme Court and the Fourth Circuit. “ELFA historically has participated as amicus curiae in cases which are of national or market importance to the industry in both federal and state courts,” said ELFA’s Bentsen. “The crux of the issue at hand is that U. S. Supreme Court and Fourth Circuit Court of Appeals decisions have clearly established the principle/standard that in the realm of lease/leaseback and sale leaseback transactions, the form of a transaction will not be disregarded as long as the transaction has tax independent considerations and is not shaped solely by tax avoidance features,” he said. In addition to the BB&T amicus curie brief, ELFA filed a brief in the U. S. District Court for the Southern District of Ohio on June 18 in support of Fifth Third Bancorp’s opposition to the U. S.’ motion for summary judgment. The Fifth Third case raises the same issue of major significance to the industry and ELFA asks that the court reaffirm the time honored tax principles applicable to leasing as enunciated by the U. S. Supreme Court and leading Court of Appeals cases. ELFA’s amicus filing requests that the court deny the U. S. motion for summary judgment in this case and apply established precedent in this area. Once again, ELFA requests that the U. S. District Court make a factual inquiry to determine whether the rights and obligations imposed on the taxpayer had economic substance. ELFA is also the premier source for statistics and analyses covering the equipment finance sector. To access ELFA's comprehensive industry information, please visit ### Press Release ########################### Trinity Industries, Inc. Announces Railcar Leasing Transaction
DALLAS, -- Trinity Industries, Inc. announced today it has purchased 20% of the equity in newly-formed TRIP Rail Holdings LLC ("TRIP"), which will provide railcar leasing and management services in North America. TRIP's remaining equity is held by five private investors not related to Trinity or its subsidiaries. The entity is the first of its kind in the railcar leasing industry. As part of the agreement, a wholly-owned subsidiary of TRIP plans to purchase approximately $1.4 billion in railcars from Trinity Industries, Inc. and Trinity Industries Leasing Company ("TILC") during the next 24 months. TILC will manage and service the railcars for the new entity. "By forming this new company, we are able to shift a significant portion of Trinity's railcar backlog that had been dedicated to our internal lease fleet to third-party sales transactions," said Timothy R. Wallace, Trinity's Chairman, President and CEO. "By doing so, we can continue growing our leasing operations while simultaneously improving the Company's overall cash flow. We are excited to have identified investors who share our vision of growth and profitability in the railcar industry." The Company will provide further details on this transaction during its Second Quarter Results conference call. Trinity Industries, Inc., headquartered in Dallas, Texas, is a holding company that owns a variety of market-leading businesses which provide products and services to the industrial, energy, transportation, and construction sectors. Trinity reports its financial results in five principal business segments: the Rail Group, the Railcar Leasing and Management Services Group, the Inland Barge Group, the Construction Products Group and the Energy Equipment Group. For more information, visit: www.trin.net. ### Press Release ###########################
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Today's Top Event in History 1963 --In one of baseball's most memorable pitching duels, Giants' Juan Marichal and Braves' Warren Spahn both hurl 15 scoreless innings before Willie Mays ends the marathon with a homer off Spahnie in the bottom of the 16th giving San Francisco a 1- 0 win. [headlines]
This Day in American History 1776- the Continental Congress, Philadelphia, PA, having a quorum, voted to adopt a resolution introduced June 7, 1776, by Richard Henry Lee of Virginia: “Resolved, That these United Colonies are, and of right ought to be, free and independent States, that they are absolved from all allegiance to the British Crown, and that all political connection between them and the State of Great Britain is, and ought to be, totally dissolved. That it is expedient forthwith to take the most effectual measures for forming foreign Alliances. That a plan of confederation be prepared and transmitted to the respective Colonies for their consideration and approbation.” This resolution prepared the way for signature and adoption, July 4,1776, of the Declaration of Independence. -------------------------------------------------------------- Baseball Poem
-------------------------------------------------------------- SuDoku 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? http://leasingnews.org/Soduku/soduko-main.htm -------------------------------------------------------------- Daily Puzzle How to play: Refresh for current date: --------------------------------
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