Harmon on His Way Back!!!

  El Camino Resources in Woodland Hills, California, was one of the largest independently owned leasing companies in 2000. It had 1300 employees with over $50 million a month in originations with more than $1.3 billion in assets installed on four continents, as well as technology services in both the U.S. and Europe.  Dave Harmon was one of the founders of the company and was instrumental in its growth that was accomplished over a twenty year period. 

 In the year 2000 the El Camino's bank lines were pulled with the company being forced into liquidating at any costs to repay the lines.  Harmon worked to repay the obligations and was successful in doing so without totally closing the company.

 Today he is on his way back up with 50 employees today, specializing in high technology again, director leasing, looking at repeat customers, his direct salesmen bringing in accounts, and selective brokers for “fair market value” leases over $150,000.

 Much of El Camino's business today comes from Mexico, where Harmon  started to re-build his portfolio.  He specializes in Latin America, but wants to get back into the “operating lease” marketplace in the US..

 El Camino specializes in technology and is looks for companies that are dependent are dependent on it.  Part of the universe is companies, such as internet providers, software developers as well as users with global requirements.

 El Camino provides financial and technical service offerings to business enterprises in the United States, Mexico and selective other countries in the Americas.  In addition to its  lease financing activities, El Camino also  provides new and  used IT equipment where appropriate.

 Their website, www.elcamino.com , states:

 “El Camino Resources gives you choices in client device selection, hardware support, financing and asset management. We help you plan client strategy based on current and expected needs, the state of the hardware and software industries, current and emerging network technologies, budget and the skills of your end users. If you prefer one or a few particular vendors, that's fine with us. We are totally vendor independent. If you need information about our field experience with a large range of client terminals, please just ask.”

 “It has taken me three years to ramp it back up again, “ Harmon says. “ It has been a to repay all of the banks from a shrinking asset base.  Restarting the leasing is also taking a good deal of work in that the IT leasing business has changed with a diminished volume of good business remaining available to the independent lessor.  It is now a business of looking at and making very selective credit decisions.  By that I mean ones thatmake sense, and if not, collateralize them.”

He says he has very good  lines with key banks for transactions, particularly in Mexico.He wants to stay independent.

The keys to his success?

“Work hard,” he answered. “Have sales people that make great relationships with their customers, and who do it right...treat the customer right. Explain the economic benefits and find different ways to develop transactions...make it helpful for the economic benefit of the customer.”

In Mexico, the company went through a 12-month period of reduced activity, but is now a leader in independent leasing. ECR has forged relationships with a number of leading banks in Mexico, and has negotiated several bank lines for leasing in excess of $20 million, as well as other partnering facilities. In calendar year 2003, the Mexican operation achieved bookings for its own account of over $20 million in new leased assets. This year, the company has extended its reach with new partnering programs and expects to book in excess of $65 million in new lease receivables.

David Lopez, ECR country manager, reports “Due to the fast responding banking environment in Mexico, ECR Mexico has grown organically without an equity infusion or financial assistance from a U.S. parent. We expect to continue to utilize our skills and market contacts to substantially grow ECR Mexico's leased asset base.”

According to Harmon, “Our Mexico management team has forged strong and deep relationships in Mexico with both our clients and financing partners. Recently – and for the first time ever – we completed the discounting of lease receivables in Mexico on a non-recourse basis.

“ This speaks to the strengths of our Mexico operation, its management team, and the maturing banking system in here.”

Harmon is on his way back as he has recently announced his company will again write leases in the U.S. His company has several banking and investor programs under development, is in negotiations with leading world-scale financial organizations, and expects to announce details over the near-term future. He states his company emphasis will be the same as during the company's previous 20+ years of operation: to write good leases with clients it expects to service over many years.

He is looking for good business, and new business

“We expect substantial growth in leased assets in the U.S., in concert with partners utilizing El Camino Resource's expertise and asset management programs. If you have an operating transaction over $150,000, give us a try.”