Jim Raeder Responds to Criticism of CapitalWerks

“In sixteen years of managing and growing leasing companies, our management team and coworkers have always provided profitable originations for our underwriters.  These malicious allegations do not represent CapitalWerks operations and would be clearly covered under representation and warranty agreements with our lenders. To risk having to repurchase transactions for the limited amount of profit margin left after commissions and expenses is ludicrous.  The due diligence we conduct to insure a profitable relationship with our customers and lenders will continue for years to come is inherent in our credit packages and the knowledge of our dedicated staff.   We would not jeopardize these relationships to benefit any salesperson or for any transaction.  

“We believe that we have built a very knowledgeable and experienced credit/doc/finance team that strives to provide quality deals for our business partners. With a solid infrastructure in place and now 118 employees, we continue to grow in a profitable and controlled manner.  All our software and work flow management systems are designed to match our lenders requirements to avoid losses regardless of if we hold the paper or sell it in the secondary market. 

“I apologize to all of you for having to be the recipients of what I consider to be cowardice attacks upon our company.   Mark McQuitty, our management team, and I point to our track record over the past several years, providing to our funding sources, and our lines of a credit, the ability to achieve strong volume and profit goals on leases and loans that pay to term. 

“In regards to the recent article in the New York Times regarding our handling of customer complaints, I can only say I found it quite one-sided, and seriously misstated. There was information not investigated properly by the writer, along with several misleading and inaccurate statements. In regards to the Better Business Bureau report, these complaints were attributed to the acquisition of the assets, and only the assets of several failed leasing companies.   CapitalWerks in almost every case was not the originating Lessor.   Our policies of retaining fees is explained up front in our agreements, and is considered industry standard for commitment language.   Ask Kit Menkin at Leasing News and he will tell you for the last four years we have investigated and resolved all disputes.

“I appreciate Equipment Leasing Association President Michael Fleming explaining the purpose of commitment letters as he expressed

our viewpoint perhaps more eloquently the we may have been able to present, and would like to thank him in some way for speaking up not only for ourselves, but for all of us whom are constantly bringing value to our customers in this underserved market of small business lending and leasing.”

   James Raeder

   President

   CapitalWerks/Preferred Lease