Mission Statement

Mission Statement ---Reader's Survey Part II

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by Christopher Menkin

Editor/Publisher

There were over 452 e-mails over the holidays, which I read, some of

them several times. There were a few after this period. All were very

positive and encouraging. The only criticism, and two of them anonymous,

concerned “cronyism.”

I will keep in mind not letting the same people keep making responses

in Leasing News. I will try to use less from old friends, although they

do help with leads, inside information, and “opening doors.”

It is very difficult to get a company to respond to a negative news story.

Often “inside information” is quite contradictory. It is history that often

proves the “inside information” to be accurate. Often that is within three

to six months.

One major indicator is the number of complaints about a company,

and when they build, you see through the smoke and find the fire.

During the holidays, Leasing News recounted some of these

stories from MSM Capital, the Funding Tree, Centerpoint, United

Capital, SaddlePoint, to name just a few.

What started this survey was the “rat pack,” as one reader described

them, calling our advertisers, sending e-mails to readers who signed with their e-mail address ( note, we don't do this anymore, unless the sender wants it for a “plug,) calling our advisory board members, and complaining we were not “fair,” putting pressure by saying, “Who's side are you on?”

Some call them the “NAELB guys,” as some are ex-directors, and current directors, of the National Association of Equipment Leasing Brokers. They are not calling or sending e-mail representing NAELB, but themselves.

When we asked a reader if we could quote him, he responded, “Yeah. Go ahead and quote me. I can live with the Naelb guys and their issues.”

( Naelb is pronounced as one word: Nah-elb, not commonly spelled out n.a.e.l.b. when spoken.)

It appears we were not fair because we did not print a “slanderous” statement, in my opinion. Since then we have repeatedly asked for a statement to print in the complaint that follows at least “netiquette.” None has been received since December 2, 2003. Just about a month ago, I personally asked the NAELB president Bob Bell to ask their legal counsel to help put a statement together for the bulletin board complaint. He told me he was trying to stay out of “it,” but he did have some personal advice as my friend: to wake up the next morning, look in the mirror first thing , stare into what I saw, and learn if I was being “true to myself.”

http://www.utdallas.edu/police/wavs/dragnet1.wav

Here are comments from readers about:

Bulletin Board Complaints

I like the format of your newsletter just the way it is.

And for those that keep advance rentals even when the lessee is a jerk are

wrong.

The only the time you earn a commission is when the deal funds. If they what a fee to work on the deal they should ask for it as a fee not an advance rentals that are earned because they say so.

You reported Barry (Reitman of Keystone Financial Services) kept advanced rentals which he admits. He just thinks he earned them because the lessee lied. What lessee tells 100% the truth?

Jeff MacDonald

Mesa Leasing

San Diego, Ca

I have been a reader for a couple of years, and am mostly interested in keeping abreast of the industry with regard to regulatory changes and the goings on of other companies in the industry.

Thanks for the effort you put into this letter! You clearly seem to be "under fire" from a number of quarters recently....as a reader, it is impossible to know both sides of the story that created this issue; however, I have not read anything that struck me as unfair to either party, and it is equally clear that both parties have had ample opportunity to provide their own input in a form suitable for publishing.

Consider this to be a "hang in there" message - I would hate to see you bail out based upon pressure that appears to me to be very self serving.

Thanks again, Kit.

Dana Prescott

Merrimak Capital Co

Lakewood, CO

I was dismayed that so many of your editorial advisors thought that advance rentals could be kept if the applicant was found (by whom?) to have lied on the app. Who died and made them Judge Judy?

Dave McDonough

For what it's worth, I think Mr. Reitman (of Keystone Financial Services )should have given back the deposit. The unwritten rule is you give the money back if you can't produce the deal the lessee signed up for in a reasonable period of time.

There is a lot of room for interpretation here, but the amount of time spent on a deal or even allegations of fraud don't count.

Nobody said being a lease broker is an easy job. The resignations are uncalled for.

Neil Whitman

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Keep the LeasingNews.org website going but maybe cut it back to one day per week to ease up your burden.

2nd comment: The recent debacle over the "non-refunded, security deposit" matter put you, Kit, in an untenable position.

Bottom line: you were damned from both sides. One the one hand, LeasingNews has a bone fide policy of not printing libelous comments on any subject, yet that unnamed lessee stipulated that all of his comments were to be published regardless of some of their reckless nature.

By upholding your own editorial standards and abiding by state laws surrounding libel/slander, you exercise caution and professionalism.

In the end, Kit, no good deed goes unpunished. Please continue your fine work.

(You may publish my comments, Regards. Gary Ford, San Rafael, California)

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“Candid Reporting”

All of us here at Black Rock Capital, LLC enjoy and benefit from your

candid reporting - I'm sure you know that the only objections come from

those with embarrassment or something to hide so don't pay attention.

Please keep up the very good and necessary work and accept our very best

wishes to you and yours for the Holidays and coming New Year.

Regards,

GKB

George K. Booth

Managing Director

Black Rock Capital, LLC

Chapel Gate

110 Chapel Street

Bridgeport, Connecticut 06604

Over the past few years I have taken time each day to read the Leasing News. The service you provide our leasing community is invaluable. I know it takes a great deal of personal time and effort to accomplish this task each day. We are both old enough and wise enough to know that there will always be people who will complain about someone else and their work. I would say that the vast majority of your readers find the service you provide to be accurate, fair and worthwhile to our leasing community. Please keep up the good work.

Best wishes,

Bob Chlebowski

President

Capital, Technology & Leasing, LLC.

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I think your leasing news E-mail is a great thing. You are doing an

excellent job and have a variety of information that is important.

Your leasing news classified add section helped me get a job back into leasing.

I was not only contacted by a recruiter but by several different companies

due to my add. Thank you for posting the ads.

I enjoy reading all the news and issue you bring up. Please continue with the excellent news you provide. I think you are doing a great job.

Pamela Loomis

Reading Leasing News has an element of the BBC World Service (integrity and some subject matter that seems a bit foreign), a bulletin board for complaints, and Jerry Springer. That's all good, entertaining, usually relevant, sometimes useless tidbits, what have you. You can't please all of the readers all of the time, but providing some good stuff fairly often makes the publication a standout from the other industry rags which are formulaic, unimaginative, and written by robots or PR hacks.

Leasing News gets juiciest of course when it is exposing bad people or bad practices.

Give yourself a break though, reduce the frequency. Our industry doesn't move so fast as to need or deserve a daily. Three times a week and improve your quality of life.

But: keep it going. It's good, and a testimonial to its publisher.

Paul B. Weiss, ICON Capital Corp., San Francisco

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Although not an "early" reader, I have been an ardent fan of your

e-publication. I became involved in equipment leasing in 1982 when I went to work for Control Data Business Centers/Commercial Credit. I have seen

a lot, heard a lot, and had many horses shot out from under me (none of the banks, commercial finance companies, nor brokers I worked at are extant, or

in the form in which they existed when I was their employee).

The reason for the above preface is to bring home a point. This

industry is inherently unstable. It absolutely needs the light of day that you bring in your publication to unearth corrupt players and ignorant/greedy management.

I realize that your intelligence is sometimes anecdotal, but I think that you are ethical, and weigh that before you go to press. You are also willing

to tell the success stories, which, hopefully, will be emulated within this industry.

I want you to continue in your diligent efforts to provide a modicum

of common sense to an industry that very much needs it.

Dave Brownlee

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I hope you aren't writing and publishing Leasing News with a wish that all

your readers will appreciate exposé's, especially when those exposé's are

about them, their companies, or their industry friends. It appears that you

have a right, just like any other media publication, to print what you

believe is correct, even if it is based on reliable, but confidential

sources. Not everyone will be happy with what you print, but I notice that

even those who are unhappy because they have become targets still read your

newsletter.

Steve Chriest

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Leasing News is my source of leasing information.

The pic's from the past and other non-core data I find to be fluff. You excel in getting the inside scoop on industry issues. The articles that describe a company and what it does (a profile) are good let s one learn more about who s out there.

Announcements about funding source windows opening and closing and

general scuttlebutt are where you shine.

David Rabinovitz

Bankers Capital

LaChance Financial Services, Inc.

Marlborough, MA 01752-1981

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2003 has not been a year without its obstacles and hurdles, which as usual,

is all too typical to the leasing industry. Our career choice formulates

the exacting responsibilities we endure since the monetary upside has its

definite draw and advantage.

Having said that, I know that what you have been through over the past

years, and even so more recently, can be really taxing and extract from all

of the positives that you research and report for the rest of us on a daily

basis. Christmas is always a good time of the year, to take time off,

reflect on the past year, and strategize for the next.

Concentrate on the facts, forget about the gossip, ignore the ignorant, and

more importantly, keep reporting the truth.

Few things are impossible to diligence and skill... Great works are

performed, not by strength, but perseverance. - Samuel Johnson.

Evan Barker

Alliance Funds

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I like the newsletter and appreciate the time you must put into it and I

know it is difficult to strike the "right" balance, wherever that it is,

probably in left field.

With the comments I have read recently about errors of fact I humbly

suggest that you follow something the New York Times and other publications follow, and that is that any information given you be confirmed by a second, responsible source. At the very least the half told story may be fleshed out and corrected or confirmed. News from people who do not sign their names is tricky but without such tips news is often missed. Somehow verification from a reliable source needs to second that item, otherwise it is speculation at best.

I don't think free ads is a strategic business goal. As a tactic to

induce people to place ads and see positive results it is a good concept but

ads should pay the freight. Your requirement that 10% of the money recovered for companies go to the Equipment Leasing and Finance Foundation is excellent.

Without such a requirement being accepted, in black and white on paper,

nothing will ever be donated.

Announcements are ok as long as they are useful to the audience. For me

this means is an announcement of a company that an individual is promoted is not of importance unless the new position is one that a broker has to have

contact with that individual.

All in all, it is a good news source you put out.

Jerry Bernardy

Commonwealth Capital

This message may be arriving too late to encourage you to keep the format. We do need stories about brokers, independent lessors, the GEs and others related to the leasing Industry.

I have been in the leasing business in Austin, Texas, for 27 years, not a long period of time but enough to understand a small portion of this business. It is fun. When I retired from the US Army after 30 years service, I needed a hobby or fun job so I elected to become a one man broker entity. A competitor, Gary Millhollon, joined me after my second year and we grew the newly formed company, doing both governmental as well as commercial leasing. We began as a broker, then discounter, then independent lessor. I can recall doing business with IFG out of Great Falls; now that is really going back. We had a great business going with 15 employees when the bust of the 80s hit Texas. In a short period of time, we lost two of our leading employees to cancer while in their 50s, and one to an auto accident. Some of our former employees remained in the leasing business but with other firms. Our small company survived but tumbled in size and Gary moved on to Albuquerque. Because of my age (now 76) , I continued to reduce the size of the company until we are now down to two employees. We will continue until we finish servicing the leases we now have on hand.

Could I have retired earlier? Of course, but it was too much fun to quit. Also, my father, now 101, suggested I was too young to hang up my hat.

We have been members of WAEL, later UAEL, from 1985 until 2000 as well as AGLF during the same period. These are great organizations and very useful to a growing entity. I am proud to have been a member of those organization and the leasing industry. I have terminated our memberships because I feel I am to ancient to associate with the young folks and travel has become more difficult. I never did feel comfortable in pure social situations, yet I enjoyed attending the meetings, the networking and gaining new ideas.

I am happy with the Leasing News format as you now have it. Thanks for the news and the memories.

Chuck Seideman

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I am not familiar with how you run your business (so

don't take this as a personal attack), but I am

familiar with how several of the southern California

leasing companies operate. The notion that 90% of the

leasing industry is crooked is being generous. The

following are some examples of SOP's in the leasing

world

1: giving pre-approvals (just to get a check on the

deal and "get the deal off the street"). Then

submitting (shot-gunning) it to banks seeking

approvals. If no approval is achieved keeping some

money for "work performed". If any approval is

achieved, even at ****** rates keeping the entire

amount of advanced rentals is considered appropriate.

2: Quoting "Simple interest" to clients hoping they

don't know how to run rate.

3: Charging Interim rent on deals. Thus spiking the rate of return on the deal.

This Interim Rent is often times calculated from the

time the invoice is dated NOT the date with which the

D&A (verbal audit) was completed. Interim rent at a

minimum is deceptive and at best deceptive

4: Including "IMPLIED FMV" language in documents and

telling the lessee that it is a $1out lease.

5: Including Insurance language in the docs that state

"if the lessee does not provide proof of insurance on

the equipment the lessor will attach insurance to the

equipment and add the amount to the monthly payment"

Although this makes funding deals easier it ultimately

ends up PILING ON the lessee.

6: Collecting extra payments on leases, and many of the big ones

do it, unless the customer counts payments, saying you didn't tell me

in time so the lease continues, and there are more----

I mean come on KIT you even give time to a law firm

advertising "HOW TO KEEP THE WHOLE ADVANCE RENTAL

CLASS". How the HELL does that advance the legit

leasing worlds agenda?? Why is finding out ways to

keep lessee's money such a hot topic on this

newsletter?? Shouldn't it be how to book more

transactions?? I bet the answer is "we can't stay in

business by doing work we don't get paid for" well if

you are unsuccessful at your work maybe you SHOULDNT

BE IN BUSINESS.

name and address withheld please

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The Mission of “The World” newspaper

“An institution which should always fight for progress and reform; never tolerate injustice or corruption; always fight demagogues of all parties; never belong to any party; always oppose privileged classes and public plunder; never lack sympathy with the poor; always remain devoted to the public welfare; never be satisfied with merely printing the news; always be drastically independent; never be afraid to attack wrong, whether by predatory plutocracy or predatory poverty.”

October 30,1911 Frank J. Cobb, editor, “The World”

We will stay the course.

We will try to not quote the same people as often as we have in the past.

We will continue printing “press releases” trying to put them into one section.

We have purchased rights to more cartoons and will run at least one a week.

There will be less leasing association news, as readers say they get this

information direct. We will continue the free “job wanted,” “attorney,”

and “outsourcing” classified ads.

If you missed part one, please go here:

http://www.leasingnews.org/Conscious-Top%20Stories/Mission%20Statement.htm

Christopher “Kit” Menkin

http://www.utdallas.edu/police/wavs/glock.wav

Part I ---

Mission Statement ---