Wednesday, November 10, 2010
Leasing News Migration
You May Have Missed---
Leasing News Migration
www.leasingnews.org was “migrated” to a new, more modern, more up-to-date, more secure, faster web server. During this time, the web site was down, then was brought up, but had some difficulties. eMail was lost during this transition, into “outer space,” so if you did not get a response, it is because email was “lost.” Please try again: email@example.com
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“Evergreen” is Marlin’s Third Quarter
“Renewal income net of depreciation totaled approximately $1.9 million and $1.8 million for the three-month periods ended September 30, 2010 and September 30, 2009, respectively.”
As Marlin Business Services, Mount Laurel, New Jersey continues with its adding of direct and indirect sale personnel, and improves its position with its bank and tax consequences, including as of September 30, 2010 having approximately $94.2 million of available borrowing capacity in addition to available cash and cash equivalents of $44.1 million, its main income still comes from "Evergreen Leases," where at the end the lessee continues making payments. Most of them, according to their SEC filings, are from copier leases.
Marlin, a member of the Equipment Leasing and Finance Association (ELFA), is one of the prime motivators to keep states from changing the laws to formally notify lessees about the end of their lease and options that they have. In Marlin's case, when the lessee does not contact them 90 days in advance, the lease continues as evidenced by the many SEC filings Leasing News has printed.
It is true that Marlin has increased its sales force and is now taking broker business and therefore has more originations. Here is their explanation, but buried deep in the 10Q is the real reason.
Here is the information as recorded in Marlin's third quarter SEC filing:
“During the three months ended September 30, 2010, we generated 3,253 new leases with a cost of $35.8 million compared to 1,916 new leases with a cost of $16.8 million generated for the three months ended September 30, 2009. Much of the change in volume is the result of increasing sales staffing levels, which were 84 sales account executives at September 30, 2010 and 34 sales account executives at September 30, 2009. Approval rates also rose from 38% for the quarter ended September 30, 2009 to 49% for the quarter ended September 30, 2010 due to the improved credit quality of the applications received.”
Nine Months Ended
Fee income included approximately $1.3 million and $1.3 million of net residual income for the three-month periods ended September 30, 2010 and September 30, 2009, respectively. Fee income included approximately $4.0 million and $4.1 million of net residual income for the nine-month periods ended September 30, 2010 and September 30, 2009, respectively. Net residual income includes income from lease renewals and gains and losses on the realization of residual values of leased equipment disposed at the end of term.
“Our leases generally include automatic renewal provisions and many leases continue beyond their initial contractual term. Based on the Company's experience, the amount of ultimate realization of the residual value tends to relate more to the customer's election at the end of the lease term to enter into a renewal period, purchase the leased equipment or return the leased equipment than it does to the equipment type. We consider renewal income a component of residual performance. Renewal income net of depreciation totaled approximately $1.9 million and $1 8 million for the three-month periods ended September 30, 2010 and September 30, 2009, respectively. Renewal income net of depreciation totaled approximately $5.8 million and $5.3 million for the nine-month periods ended September 30, 2010 and September 30, 2009, respectively.”
-Marlin 10-Q 9/30/2010 filing
Again it is highlight in the following press release that direct sales have increased, but not mentioned is business from third party originators. According to one independent broker, he was told the cut-off was 20 brokers, but perhaps in the future, Marlin would increase it. Once heavy into this method of sales, Marlin has made no comment, nor gives any emphasis to its real profit coming from Evergreen Leases.
In an effort of presenting all sides, here is Marlin Business Services press release in full:
### Press Release ############################
Marlin Business Services Corp. Reports Third Quarter 2010 Results
Third Quarter Highlights:
MOUNT LAUREL, N.J., -- Marlin Business Services Corp. (Nasdaq:MRLN) today reported third quarter 2010 net income of $1.4 million, or $0.11 per diluted share, and net income on an adjusted basis of $1.4 million, or $0.11 per share.
"Despite the lingering effects of a weak economy, we're pleased with the solid results for the quarter," says Daniel P. Dyer, Marlin's CEO. "We continue to make steady progress on the sales side, with solid new lease originations growth and continued investment in the sales force. Portfolio credit quality is in very good shape and the underlying credit and profit fundamentals of the business are solidly intact to support profitable growth in the future. Looking ahead, our attention is squarely focused on disciplined growth and capitalizing on the exciting opportunity to serve the growing demand for our services by customers across the U.S."
Third quarter 2010 lease production was $35.8 million, based on initial equipment cost, up 12.9% from $31.7 million for the second quarter of 2010. Approval rates on lease originations were 49% for the third quarter of 2010. The average implicit yield on new lease production was 14.40% in the third quarter of 2010. Net interest and fee margin was 12.26% for the third quarter of 2010 compared to 11.66% in the second quarter of 2010 and 10.20% a year ago.
The Company increased its sales force 22% in third quarter 2010 to 84 full-time equivalents.
Credit trends continued to improve and have returned to historic levels. Highlights for the third quarter of 2010 included:
At September 30, 2010, the Company had outstanding $110.6 million of leases and loans funded through its banking subsidiary, Marlin Business Bank, and had $95.4 million in FDIC-insured deposits outstanding at an average borrowing rate of 2.69% with a weighted average term to maturity of 2.9 years. Average deposits outstanding for the third quarter of 2010 were $96.3 million at a weighted average interest rate of 2.70%.
On September 24, 2010, Marlin Leasing Receivables XIII LLC, an affiliate of the Company, closed on a $50 million three-year committed funding facility with Key Equipment Finance Inc. The facility will be used by the Company to fund its growth, increasing its ability to extend flexible equipment financing options to small- and medium-sized businesses nationwide.
At September 30, 2010, the Company had $105 million of available funding through its bank facilities and Marlin Business Bank.
In our form 10Q filed on August 6, 2010, we disclosed that we were in discussions with the Federal Reserve Bank in connection with the Federal Reserve Bank's interpretation of the Interagency Policy Statement on the Allowance for Loan and Lease Losses (SR 06-17) dated December 13, 2006 (the "ALLL Policy Statement") and the appropriate application of the ALLL Policy Statement to management's estimates used in determining the Company's allowance for credit losses (the "Allowance"). On October 27, 2010, Marlin Business Bank received a written determination from the Federal Reserve Bank of San Francisco and the Utah Department of Financial Institutions (the "MBB Report"). We do not believe that any of the recommendations in the MBB Report require a material adjustment by the Company.
While the Company has not received a written determination from the Federal Reserve Bank of Philadelphia in connection with the ALLL Policy Statement and Allowance discussion, if the Company receives such a written determination and if, as a result of the Company's review of such written determination, management determines that it should revise its estimates or methodology used to compute the Allowance, such changes could have a material impact on the size of the Allowance.
Conference Call and Webcast
About Marlin Business Services Corp.
#### Press Release #############################
Marlin 10-Q 9/30/2010 filing:
Leasing Industry Help Wanted
Please see our Job Wanted section for possible new employees.
Leasing Web Site Rankings
(Several of the leasing web sites send out newsletters that click to their web site. Most are 20 to 21 times a month. The news edition from Leasing News is 12 times a month, but as can be seen from these rankings, is visited more often that the other leasing trade publications.
Alexa Ranks Leasing Media Web Sites
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. They are partnered with Google.
Sales Make it Happen --- by Linda P. Kester
“Thanksgiving & Sales”
Is your favorite part of Thanksgiving feeding your face until you're stuffed like a pig and then "vegging out" in front of a football game? American is a great country, we have a national holiday centered around food.
Besides being an excuse to overeat, Thanksgiving is a great time to reflect on all the good in you life and to reach out to your customers.
I love to send Thanksgiving cards. Last December I did a sales training at Capital Innovations, a fabulous leasing company, in Warminster Pennsylvania. When I walked in I was happy to see my Thanksgiving card hanging front and center. They put up my card and then started receiving Christmas cards. My card was the first one received in the holiday season and they liked it because of the handwritten thank you note inside.
You don't have to send a card to let your customers know that you're grateful for their business. Just pick up the phone and tell them “Thanks for doing business with us this year. Happy Thanksgiving.” If you say it with sincerity, it will make both you and your customer feel good.
Frequently we underestimate the power of gratitude. How much time do you actually focus on gratitude, compared to the time you spend thinking about the problems in your life? Many leasing sales people think “I don't have enough applications. I don't have enough volume. I don't have the income I want.” When you focus on the things that you don't want you continue to get those things. Instead focus on the things that you're grateful for like the last big deal you booked, or the lessee who stuck with you even when the funding source backed out at the last minute.
It's simple, what you appreciate, appreciates. What you're grateful for you get more of. When you appreciate the customers and volume you have, more customers and volume come to you.
I've experienced myself how powerful gratitude is. After selling copiers door to door I was jaded. I brought that negative attitude into leasing sales with me. After struggling for a couple months, I started writing down five things that I was grateful for each day. My gratitude list improved my attitude and my outlook. I started prospecting more and I began to see results. I went from an under performing sales rep to a member of my companies President's Club. After four continuous quarters in President's Club I was promoted.
If you count your blessings, then instead of becoming negative at the first sign of difficulty, you take note of all the good around you and you retain your positive energy.
This Thanksgiving think of the things you're grateful for and really feel those feelings of gratitude. When your heart swells a little bit, pick up the phone and thank your customers. You will end up expanding your heart and your customers' heart as well. To me that's better than stuffing you face with food. It's stuffing your soul with vitality and optimism. Way more satisfying then pumpkin pie.
If the only prayer you said in your whole life was “Thank You,” that would suffice.
Linda Kester helps leasing companies obtain more volume.
For more information please visit www.lindakester.com
Sales Makes it Happen articles:
Letters!---We get eMail!
(Mostly in chronological order)
More Layoffs at LEAF Financial
“Good article on Leaf today. Looks like the end is fast approaching and they’ll probably do the same thing they did with the predecessor Fidelity Leasing and sell off the assets. The structure of Fidelity was similar but who’s buying bulk lease assets. I tried calling my credit buddy over there to get the latest scoop but no answer. He might be gone too- I don’t know for sure. I attached the latest 8K showing Leaf got a 6 month line in September for $21.5M. Ever hear of a bank line for just 6 months?
“It seems to me that getting the short term $21.5M line for only 6 months is indicative of how US Bank looks at the future for Leaf. Anyway, $21.5M is tiny and it certainly won’t help their big picture.”
(name with held)
(LEAF appears to be active with Dolphin, and perhaps is working with other financial institutions, as noted in this press release:
("Leaf Financial Corp. has reached an agreement with Samsung Business Communication Systems to provide co-branded customer finance programs. The new initiative, Samsung Finance, gives small- and mid-size businesses nationwide access to financing and leasing.
Samsung Business Communication Systems, a Dallas-based division of Samsung Telecommunications America, is the distribution arm for the company’s line of business communications solutions. Leaf Financial is a commercial finance and asset management company based in Philadelphia. It originates small- and middle-ticket equipment leases through strategic alliances with manufacturers, distributors and dealers of equipment and software. After origination, Leaf manages the leases for its own account, institutions, and individual investors through investment partnerships and other investment vehicles."
(Samsung telephone systems is a non-brand and they don’t sell much in the USA, I am told. Perhaps the above is a vendor private label deal where Leaf makes the credit decision and buys Samsung’s contracts.
Leasing Business Improvement by Christopher Menkin
“This was what we need to hear more of…Optimism.
Leasing 102 by Mr. Terry Winders, CLP
“Let me be the first to say ‘thank you’ for the well written article in Leasing News this morning. CLP Foundation appreciates your support! “
Four Prominent Attorneys on "Reps and Warrants"
“FYI – see attached email from a broker who was pushing us hard (a big tip off in itself) to approve the Allied Healthcare scam back in 2007. The broker made sure he also wrote me a terse email after we rejected the Allied Health Care credit and even attempted to disparage us when he copied the highly respected Ira Romoff, (who I have known back to the EAB days when Norm Bobins hired me to start LaSalle National Leasing Corporation in 1993).
“The broker’s parting cheap shot that we took too long to make a decision is clear evidence of Cobra Capital’s thorough underwriting process. If something sounds too good to be true or something does not add up, we dig in our heels and investigate with as many sources as we can contact and very simply, we just keep asking questions until we hit the foundation for any deal.
“Obviously, Cobra made the correct decision in turning down this huge scam. Just like we turned down the EAR and Wildwood scams.
“All three had very similar characteristics – they were all too good to be true!”
Dale R. Kluga
I received your voice message this morning. I am disappointed with your decision on this credit but far more disappointed with the time it took and your lack of communication. Our success depends upon our ability to provide excellent and intelligent service to our customers and that requires collaboration with our lenders. Frankly taking over a week to make a decision that could have been rendered before we ever submitted the transaction is simply unworkable for us.
“I thank you for your effort but suspect we are not a very good fit for each other.”
(name with held)
(This lessor put together many Allied Health Care Service deals and is relatively well-known in the leasing industry.)
Allied Health Care Services 123 pages of Creditors
“I saw Bruce Donner and Donner Medical were listed as creditors….what a joke.”
Adrian Hebig resigns from US Bank Manifest
“Your article on US Portfolio Service and then Adrian Hebig resigning did not get the entire story. There are $125-175 Million in bad debts at Manifest.”
(name with held)
(Adrian Hebig did not return repeated telephone calls. No officer or public relations person at US Bank Manifest returned the many emails or telephone calls…but makes sense why so many brokers were cut off, staff, reps gone, salesmen let go, and many other cuts backs, including the US Bank Leasing Portfolio Service as it certainly looks like major cut backs to a once high flying leader in the small ticket leasing field. Editor.)
NEFA Conference Best Ever by Brad Harmon, CLP
ELFA Boca Raton Conference Report by Shawn Halladay, the Alta Group
“Just getting back from the ELFA and read the Leasing News first thing this morning. First thanks for the very nice article on Tara Aasand as NEFA member of the year. She has really gone over and above in her efforts for NEFA this year and throughout her years of involvement. NEFA is truly a member run and driven organization, and Tara work exemplifies that.
“Also, wanted to comment that Shawn’s article was “spot on” regarding the tone and demeanor of the 49th annual ELFA conference. It was really a well run event and there was a positive “buzz” in the air during the entire conference. It was fantastic to see so many industry leaders at this year’s event. Lessors that I spoke to are shifting gears back to the origination side of their business and the lenders in the room were actively searching out lessors to discuss funding facilities. These are all positive signs for improvement.
“It really is time for lessors to make their way back to active association membership if they haven’t already. There is a tremendous amount to be gained by doing so.
“Thank you again!”
Washington has less power over the economy
“This is in regards to the link you had today to a Washington Post article about how Washington has little power over the economy (written by Allen Sloan & others).
“I found that article to be one of the best summaries of what has happened to the economy over the last 4 years and would encourage any leasing professional to read it. “
Joe Schmitz. CLP
“Thank you for publishing the news about the management changes in our parent company’s equipment finance division.
“It might be useful to remind your readers about the relationship between BNP Paribas and Bank of the West & Trinity Vendor Finance. Here is a link the BNP Paribas Lease Group’s web page which might be useful to anyone interested in learning more about us:
“Thanks – Go Giants! “
(Link was added to the story on line. Editor)
Leasing 102 by Mr. Terry Winders, CLP
“Great message in Kit’s missive this morning; thanks for having the courage to raise the subject as it applies to our future ….. “
Jim McCommon, CLP
“I see what you are doing with the adopt a dog section of your newsletter, which is raising people's awareness of how to give a new home to a pet in need. In fact in May, when we decided to get another dog after our previous dog, Heidi who was 12 years old, passed away last November, I suggested to my wife we consider a dog from a shelter or rescue organization. After some research, my wife was looking into West Highland Terriers as a potential dog for our family.
“Through the awareness created by your newsletter, we searched out and found a rescue organization called Westie Rescue of Missouri. Within a few weeks, one of their volunteers came out and "interviewed" us to make sure we had the right type of home (no small kids and a fenced in back yard). Once you have been approved, they let you know of available dogs that have recently come under their care.
“Then within another week or two, we were off driving to Kansas City to pick up Rowdy, who we re-named as Emmet. A picture is attached below. He was about a year and a half old when we got him about 6 months ago. He was owned by an elderly couple, and the wife got sick with cancer. Unfortunately, the husband could not take care of the wife and the dog so they called Westie Rescue of Missouri. Through Westie Rescue of Missouri, he became our family pet. Emmett was perfectly healthy and just needed a good home.”
“So I wanted to share with you the good you are doing by publishing the adopt a dog segment of your newsletter.
“Perhaps you could add Westie Rescue of Missouri to one of your upcoming newsletters. Their website address is http://westierescueofmissouri.com/“
Sending files on the Internet
Sending large files has gotten easier. Not only are speeds faster, but new products. Here is a list starting with the oldest to the newest available
One of the oldest, but not utilized as much today is:
This program is often free with a new computer, and the company gives free up-grades from registered owners. Two basic versions. They drive you nuts with up-grades, but if the one you have is working fine, not really necessary to up-grade.
Adobe was perhaps the first to make PDF files easy to use.
This is perhaps the most popular method of copying files. The only problem is they are in the PDF format. You need to convert Word and Excel into PDF format. Adobe has two versions. It is often given as free software with a new computer, plus has a "free" version on line, but up-dates will drive you nuts, too; as well as the pitch for the larger program that you pay for the conversion to Microsoft Word.
Gaining popularity is Nuance PDF Converter, as it not only has PDF but the ability to easily convert into a word or other document. It is very fast and convenient. Many scanners today also have the feature to convert PDF. The main advantage with Nuance is not only its speed and ease to use, but easy ability into conversions (and doesn't use up all the hard drive space that Adobe does, either.) I used this exclusively.
You can use this account to send files to anyone, however there are limitations, based if the free version or paid versions.
Free version limitations:
Transfer Big Files has a free program as well as larger programs for frequent users:
Skype 5.0 for Windows has features that allow free large file sending from Skype user to another Skype user or for paid subscribers, you can use the feature to a non-user computer file.
Apple or IPhone users have the ability to use Mobile Me, which allow the use of a program called "public me," which allows a sender to post a file that requires a password. The URL is sent along with the password for the user to open up larger files.
For $69.95 now you can get YouSendIt: up to 2 GB, which includes videos, PowerPoint presentations, and other very large files. You can also use the service for one time at $9.99 with other features, for instance if you have a vacation trip you took and you want to share only with your family (not public as you would have on other programs.)
If readers have other programs you prefer, please send and will include as an up-date. firstname.lastname@example.org
“Frankie is a two year old Westie boy whose family didn’t have the time to spend with him any longer. He's a champion sleeper, not possessive with food; pretty good with sharing toys, and very good with the foster homes other two Westies (adult female and male puppy). However, he wasn’t crazy about a visiting male Westie, but this is prior to his being neutered. Frankie would appreciate a Westie wise home and older children. Frankie is housetrained, however for any new dog brought into a new surrounding, there could be accidents once adopted. He has only had one accident in his foster home and with a quick, positive correction there have been no more. Goooo Frankie!!”
Spayed/Neutered • Up-to-date with routine shots
Adopt-a-Pet by Leasing Co. State/City
Adopt a Pet
Former GE execs launch Nations Equipment Finance
Direct Capital Takes “Chill” Out of Winter for Franchisees
Banks more willing to lend, Fed survey reports
Paper Checks Losing Grip on B-to-B Segment
Consumer Credit Sees Largest Increase in Two Years
Disabled Carnival cruise ship now being towed to San Diego
Kurt Warner eliminated "Dancing with the Stars"
((Please Click on Bulletin Board to learn more information))
GM to lay off one: Mr. Goodwrench
California's unemployment fund has $10.3 billion deficit
Culinary Institute Names 2011 Vintners Hall of Fame
First Annual #Zinfandel Day November 19
Walla Walla winery wins top award at Tri-Cities Wine Fest
New company aims to reuse wine bottles
Ghost wineries link past and present
Wine Prices by vintage
US/International Wine Events
Leasing News Wine & Spirits Page
This Day in American History
1674 - Dutch formally ceded New Netherlands (NY) to English as provision of the Treaty of Westminster at the End of the Third Anglo-Dutch War.
American Football Poem
(1913-1970) US football coach
If winning isn't everything, why do they keep score?
The difference between a successful person and others is not a lack of strength,
Gentleman, this is a football.
We didn't lose the game; we just ran out of time.
Fatigue makes cowards of us all.
The harder you work, the harder it is to surrender.
If you can't accept losing, you can't win.
Winning is a habit. Unfortunately, so is losing.
The quality of a person's life is in direct proportion to their
The spirit, the will to win, and the will to excel are the things that endure.
Individual commitment to a group effort -- that is what makes a
Winning isn't everything it's the only thing.
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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- Messenheimer of AMC Funding Group filed BK 4/19/10