Monday, August 4, 2014
Today's Equipment Leasing Headlines
Archives---August 4, 2006
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Archives---August 4, 2006
For almost five years, Bette Kerhoulas, CLP, has been trying to resolve an issue with the California State Board of Equalization, who after an audit, charged Panfinco dba Pacifica Capital, Irvine, California with not paying "sales/use tax" on documentation and filing fees (if they billed separately rather than on the invoice for first and last, they would not be subject to tax, they ruled). Additionally, leases the company assigned they consider "sold," meaning the assets were not only taken as collateral in discounting, but title changed hands, therefore the leases were subject to sales/use tax in the transfer.
“Several hundred thousand dollars are involved in ‘double taxation,’ and Pacifica-Capital has spent close to $100,000 to date in defending their position. The issue was ‘settled’ before the actual hearing by the California State Board of Equalization.
“In closing, all I can say is that if I had it to do all over again, I would still make the choice to fight the California State Board of Equalization for the tax assessments that were clearly double taxation and wrong. I spent thousands of hours and many thousands of dollars in attorney and lobbyist fees. Of course our win greatly reduced Pacifica's tax liability (which had been paid in order to reduce further interest), but the fight was primarily to keep a precedent from being set which would negatively affect thousands of leasing companies that do business in California - and with the added knowledge that other states would most likely follow California's lead.”
Bette Kerhoulas, CLP
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August 1, 2014 Alexa Ranks Leasing Web Media
"Equipment Advisor" number of US readers was below the cut off, so it is not recorded, dropping them in position. "Lessors" world wide ratings also dropped considerably from June 1, 2014.
The other rankings were basically the same, although most had lost visitors, except "Leasing News" improved. The "Equipment Leasing and Finance Association," with their weekly report evidently brought them more readers and they are in better position. Newsletters go to the web site, so it definitely shows.
It should be noted the "Commercial Financial Association" has a new, improved web site and the "Equipment Leasing and Finance Association" has just come out with a new and improved site. The ELFA QuickBrief news and features they generate are bringing more readers to their web site. Click here for free subscription:
June 1, 2014 Alexa Ratings
Top Stories July 28--August 1
(1) Brooms Give Bonuses to Direct Capital Employees
(2) Pictures from the Past---1996
(3) Funders Looking for New Broker Business
(4) New Hires—Promotions in the Leasing Industry
(5) Leasing 102 by Mr. Terry Winders, CLP
(6) This Case May Chill Assignments
(7) Blue Bridge Financial Relocates New York Corporate Office
(8) Correction: Marlin Leasing Second Quarter
(9) Funders Taking New Broker Business List
(10) Marlin Announces $15 Million Stock Repurchase Program
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Capital Relay Expands “On Line Third Party Origination”
Perhaps the last of the "Aggregate Leasing Web Sites" has expanded its "Current Network Broker Group" to 707, higher than any leasing association. It states on its web site it now has 118 "Current Network Lenders," also a higher number than any leasing association.
With LinkedIn connecting many in the banking, lending, leasing business, as well as Twitter and Facebook ((making more recommendations than Yelp (1)), leasing associations are feeling the pinch in attracting, and retaining, members.
The online network claims "Capital Relay has developed an innovative network that is revolutionizing the equipment financing arena. We have developed a proprietary software program that enables brokers to access lenders instaneously and enables lenders to access hundreds of deals monthly without cost or effort."
Founded in Overland Park, Kansas, the President is Mike Ellis. He was Chairman of the Board of Sunbridge Capital, August, 1997 to December, 2007, when he sold the business. Adrian Weber took over President-CEO of Sunbridge. May 4, 2009, three creditors push into Chapter 11.Bank of Kansas City holding an original portfolio of $97 million is now down to $76 million; local banks seem to be holding the bag as well as Lakeland Bank, HSH Norbank, and Midwest Bank.
Capital Relay does not have any complaints to Leasing News or on any of the web sites and appears to be quite successful.
Any feedback from readers about Capital Relay, particularly if you have used this web site, will be appreciated, and you name held in strict confidence. We would like to learn directly from those with experience with Capital Relay.
“At the Point, They Want a Plan from Me”
Question: I have been asked to prepare a “plan”/“proposal” as part of my interview process. I have not been asked this before, can you provide some guidance?
Answer: This plan (e.g. business plan) aka a “30-60-90-Day Plan” is requested for many Sales/Sales Management Candidates and Candidates that will be leading/directing a Department or Project. Hiring managers want to see how you would handle the first few weeks and months of employment, which is critical in setting the tone of your employment. Typically, a hiring manager will request this proposal after the second or third interview, but before a hiring decision has been made.
The 30/60/90 Day Plan is meant to be a written outline of the strategy and goals you have for the first three months in a new position. It should demonstrate your understanding of what is involved and your ability to perform.
In creating your business plan, one of the best sources of information is your interview with the hiring manager. Listen carefully for information that relates to the organization’s strategy, capabilities and culture. Pay attention for clues to the hiring manager’s problems and concerns and identify the company’s future growth goals.
SAMPLE QUESTIONS TO ASSIST IN PREPARING YOUR PLAN:
There are many more facets that go into creating your 30/60/90 Day Plan, one of the reasons a management position chooses a recruiter to not only help them in employment positions available, but help in making the best presentation of abilities and performance.
Career Crossroads Previous Columns
Leasing Industry Help Wanted
Do New iPhone Models Make People Think
First, I am an Android smartphone user, but everyone in the household (and many of my friends) use an iPhone. The latest model, iPhone 6, is expected to be released in the fall. Talk is it will have a larger, redesigned screen (4.7 inch), better pixel density, better battery, faster and more efficient A8 chip. A 5.5 inch version may be available at the same time.
If the chart above is any indication, current iPhone users will be moving up, especially if there are attractive plans in the competitive wireless industry.
New sales people always ask me in what markets they should try to obtain leases. My first suggestion is to look at what is common in your area. There are a lot of markets that cover a limited area. On occasion, if you can find a fair grounds or a major hotel that offers trade show facilities, you should get a listing of what shows are scheduled and attend those that offer equipment that you would like to lease.
The beauty of trade shows is the number of manufacturers or distributors that are in one place.
While the major industries are hard to break into, there are lots of smaller markets that congregate in trade shows so that if you look for gatherings in almost any industry you may be surprised by what you find. For instance in southern Indiana, there is a lot of furniture manufacturing, so woodworking equipment would be a great market to cover. There is a lot of furniture manufacturing in other parts of the country, but they are usually concentrated in specific areas.
One market I liked to cover in times past was the marina industry. They have house boats, boat lifts, floating docks and rental inventory. They usually are owned by “owner-operators” and you will not find them in Dun and Bradstreet, so it is too small to be approached by the major lessors. Small local markets are the best for new business, and as they grow, you can look for additional business.
Another market I enjoyed was the church market. They lease everything from organs to pews. I have leased them school buses, PA systems and computers.
Here is where you can obtain free trade magazine subscriptions to look
You need to spend some time with business publications that identify what businesses are in your area so you can pick a few and call on them to determine if the equipment that serves there business is good for leasing.
The major markets such as medical, construction, and machine tools are good markets, but you will be a “Johnny come lately” and would have to be cheap or have something different to be successful. The smaller markets are better to penetrate, especially if you are new to the business and your firm does not have vendor arrangements already for you to contact. Many you won’t find in a Google search, but may meet at a trade show or even an auction.
In addition, the better records you keep the better chances you have to control your marketing efforts. Also don’t make the rookie mistake of going after a very large lease to make up for any lack of sales. Usually large leases are not only difficult to do, competitive, but full of lessees who have a Champagne taste but a beer budget.
Mr. Terry Winders, CLP, has been a teacher, consultant, expert witness for the leasing industry for thirty-five years and can be reached at firstname.lastname@example.org or 502-649-0448
He invites your questions and queries.
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Debtor’s Use of Proceeds from Going Out of Business
By Tom McCurnin
Creditor Loaned Money to Debtor to Purchase Clothing Store Secured by All Assets. Debtor Conducted “Going Out of Business Sale” and Used Proceeds to Pay Owners’ Back Wages. Court Rules That Taking Cash Proceeds of Sale Violated Security Agreement and Was Conversion.
In re Rezykowski 493 B.R. 713 (Bkrtcy.E.D.Pa.,2013).
Greed is a funny thing. It consumes people and blinds them to all logic. In today’s case, a former business owner decided to sell her business in a going out of business sale, and simply pocket the money. Not surprisingly, she was tagged by the Bankruptcy Court. The facts follow.
Danielle M. Rezykowski owned a business called “Circles” financed through a prior owner’s note, security agreement, and UCC-1 Financing Statement. She apparently couldn’t continue the business and conducted a “going out of business sale.”
The Debtor opened up a new bank account and deposited the funds from the closing sale in that bank account. Counsel for the Debtor appeared to have structured this transaction, and proposed to pay all the trade creditors about 50 cents on the dollar. Since the Creditor held a lien on the assets of the business in first position, it is not surprising that the Creditor refused that offer and demanded the entire balance in the account.
The Debtor then withdrew the monies from the account and used the funds to pay her past due salary. Again, counsel for the Debtor may have structured this because the Debtor testified that she received the money from her counsel.
The Debtor then filed for bankruptcy. The Creditor filed suit for non-dischargeability, alleging that the taking of the money, which were proceeds of inventory, was intentional and an act of conversion, excepting the Debtor from a discharge.
Not surprisingly, the Court went through the analysis of the Creditor’s security interest, the fact that she loaned money to the Debtor, it was collateralized by a security agreement, the agreement included a security interest in inventory and proceeds, and the fact that she filed a UCC-1 Financing Statement.
The Court rightfully concluded that the sale of collateral is conversion under most bankruptcy decisions. The Debtor was aware that the Creditor held a security interest and the monies were proceeds of that security interest.
Finally, the Court concluded that the actions were not merely a mistake or negligence, but the intentional acts of a person with malice toward the Creditor, even though she not subjective dislikes the person. The Court found that the Debtor knew of the security interest and intentionally paid herself salary. Finally, there was some evidence of a judgment against her by the Creditor, and the fact that she withdrew the funds and spends the money quickly, so that very little was left by the time of the bankruptcy 341A hearing. While there was some evidence that a lawyer counseled her into taking the money, the Court did not believe that “advice of counsel” was a defense to the claims.
A Judgment of Non-Dischargeability was entered against the Debtor.
The lessons for the equipment lessor seem obvious. If the creditor has a secured claim, assert it early and often. Monitor the debtor to insure that the creditor knows what is going on with the debtor, so the creditor is not surprised by a going out of business sale. Don’t be bamboozled by a crafty debtor’s counsel.
Here the Creditor did everything right and was rewarded with a Judgment for Non-Dischargeability.
Tom McCurnin is a partner at Barton, Klugman & Oetting
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##### Press Release ############################
Record 14% Increase in Durable Goods*
Consumers resume spending on cars, furniture and appliances with an increase of 14.0 percent in durable goods purchases in the second quarter; the highest increase since the Great Recession
SAN RAFAEL, Calif. - A record quarterly increase of 14.0 percent in durable goods purchases since the Great Recession was reported by the U.S. Department of commerce. During the Great Recession, consumers cut back on purchases of durable goods, such as cars, furniture and appliances, in a phenomenon known in behavioralogy as "Durable Diet". The second quarter growth of 14.0 percent in durable goods spending indicates that consumers are off their "durable diet" due to lower level of money anxiety.
About half of the 14.0 percent increase in durable goods spending was on automobiles followed by noticeable increases in purchases of furniture and appliances. The second quarter increase is in sharp contrast to the height of the "Durable diet" period in the fourth quarter of 2008, when consumer spending on durable goods declined 25.8 percent in response to an increase in consumers' level of money anxiety.
The link between the level of money anxiety among consumers and their spending on durable goods is clearly demonstrated in the book Money Anxiety. During the 2008-2009 recession, when the Money Anxiety Index reached a high of 94.4, consumers reduced spending on durable goods by as much as 16.3 percent. In contrast, during the second quarter of this year, the level of money anxiety subsided to 71.3 promoting consumers to get off their "durable diet" resulting in an increase of 14.0 percent in purchase of durable goods.
* In economics, a durable good or a hard good is a good that does not quickly wear out, or more specifically, one that yields utility over time rather than being completely consumed in one use. Items like bricks could be considered perfectly durable goods, because they should theoretically never wear out. Highly durable goods such as refrigerators, cars, or mobile phones usually continue to be useful for three or more years of use, so durable goods are typically characterized by long periods between successive purchases.
Examples of consumer durable goods include cars, household goods (home appliances, consumer electronics, furniture, etc.), sports equipment, firearms, and toys.
Nondurable goods or soft goods (consumables) are the opposite of durable goods. They may be defined either as goods that are immediately consumed in one use or ones that have a lifespan of less than 3 years.
About Money Anxiety Index
About the Money Anxiety Book
### Press Release ############################
TYSON is a young exuberant Black Labrador. Retriever mix who was relinquished to the County Shelter as his owner no longer had the time to care for him. Due to space constraints at the County Shelter Tyson would have been euthanized. In order for The Ark to rescue this big strong boy we knew he would have to go to our trainer in San Diego where he would learn the good manners to make him the Adoptable dog we know he has the potential to be. Boarding & Training comes at a cost & we hope you can help Tyson be the dog he deserves to be.
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Auto sales grow 11% in July, Chrysler sales surge 20%
Banco Espírito Santo of Portugal Appears Headed for a Bailout
Green gold rush creating gray marijuana market (vending machine)
Chain Restaurant Workers Reveal the Items They Refuse To Eat
SparkPeople--Live Healthier and Longer
Portion Distortion Quiz
WHEN THE YANKEES WIN
WHEN THE YANKEES WIN IT'S PURE DELIGHT,
I CAN SIT IN TRAFFIC ULCER-FREE
I'VE A QUICKER STEP I'VE A BROADER GRIN
ELOQUENT I WAX, CLEVERLY I PUN
AND WHEN THE RED AND WHITE SOX SLIP,
AND PRIDE AS I REFLECT THEIR GLORY,
JOYFULLY I'M GIVING THANKS
AND WHEN AND IF THEY'RE CLEARED BY JETER
RICH THE COFFEE CRISP THE BAGEL
HOW MY FORTUNES RISE AND FALL
GOODEN, JUSTICE, JORGE, ROCKET,
EL DUQUE, MARIANO, HILL,
HOW LIGHT THAT HEART, HOW FREE OF CARES
NO NEED FOR THEM TO WIN EACH DAY,
Carol P, Yankee Poet Laureate (self-proclaimed)
Traffic, tech glitches mar 1st event at new Levi's Stadium
NFL teams will use tablets on the sidelines for the first time Sunday
California governor declares emergency amid fires
Boon or bane, Yelp's impact undeniable
Condé Nast Traveler praises Yakima Valley wine country
Nor-Cal rapper E-40 has become the suprise toast of the wine world
Champagne maker on trial for looting
Saving the Wine, One Glass at a Time
Free Mobile Wine Program
Wine Prices by vintage
US/International Wine Events
Leasing News Wine & Spirits Page
This Day in History
1693 - It is believed that a monk named Dom Perignon invented champagne at the Benedictine Abbey of Hautvillers in the region of Champagne, northern France. He made the first champagne by re-fermenting a certain wine in the spring and then placing it in strong, sealed bottles so that the wine would become sparkling. Dom Perignon was the Cellar master for 47 years until his death in 1715. The sparkling wine was crude and perhaps the first one to produce what we drink today was Mme. Nicole-Barbe Clicquot, who developed the sur pointe process that clarified the sediment out of sparkling wines. She was also an astute business person, especially in a day that women did not run business. Nicole-Barbe Clinquot was the daughter of the mayor of Reims who, at 20, was widowed with a daughter after three years of marriage to a vintner. She vowed to carry on her husband's business. She developed the process of remuage (moving) in which the bottles of wine are stored upside down (on their corks or sur pointe), then the bottles are shaken periodically and then rotated to force the sediments in the wine to settle down on the cork. After a certain period, the cork is quickly removed, the sediment is expelled by the wine gases and then the bottle is quickly re-corked. The widow Clinquot also invented pink champagne. My favorite is Louis Roederer, but a Grand Madame Clinquot, now that is a fine sparkling wine! Here is a secret. You can serve “Champagne” with everything. If you cannot match a wine to a food, serve “Champagne.” Next, consider a very good beer. Don’t laugh, some fine beer goes with everything (especially if it is “fresh.”) Now what does this have to do with American History? Nothing, but thought you would like to know more about sparkling beverages.
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