Tuesday, August 4, 2015
Today's Equipment Leasing Headlines
ELFA Webinar August 5, Noon EDT
Broker/Funder/Industry Lists | Features (writer's columns)
You May have Missed---
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ELFA Webinar August 5, Noon EDT
WHAT: The Equipment Leasing and Finance Association is hosting a one-hour webinar to present findings of its 2015 Survey of Equipment Finance Activity, the largest and most important source of statistical information available on the $903 billion equipment finance industry. This special event is being held in honor of the report’s 40th anniversary.
WHO: The webinar will be presented by Raymond James, Chair of the ELFA Research Committee and Senior Consultant at Ivory Consulting Corporation; Carol Ann Fisher, Consultant at PwC, which produces the report in partnership with ELFA; and Bill Choi, ELFA Vice President for Research and Industry Services.
HIGHLIGHTS: The webinar is designed to help business leaders utilize the data in the 2015 Survey of Equipment Finance Activity to benefit their organizations. Topics will include:
Introduction to the 2015 Survey of Equipment Finance Activity
Top Stories July 27 -July 31
(1) Three Years for Stealing $700,000 Lease Proceeds
(2) New Hires---Promotions in the Leasing Business
(Tie) (3) Archives: July 29, 2005
(Tie) (3) Marlin Leasing Introduces Business Loan Website
(5) CIT Group Reports Drop in Profit as Revenue Declines
(6) FinPac, Alumni, Friends Get Together, Puget Sound
(Tie) (7) 10 Tips to Boost Equipment Sales with Leasing
(Tie) (7) Archives: July 31, 2001
(9) Archives: July 29, 2002 - Anderson Joins LeaseTeam
(10) Placard--Don't Have Time to See a Leasing Salesman
(11) Leasing 102 by Mr. Terry Winders, CLFP
(12) SBA 7(a) Raised from $18.75 to $23.5 Billion
by Christopher Menkin
Marlin Business Bank, a subsidiary of Marlin Business Services Corp (NASDAQ: MRLN) announced the formation of FundingStream.com: "Customers can access the short, simple loan application via a computer, mobile device or tablet. The entire process takes less than 10 minutes on average, with loan decisions in as little as two hours…”
Here are the requirements from the Marlin Bank Website:
Loan amounts: from $5,000 to $100,000
Time in business of 2+ years
Apply online in less than 10 minutes
You can use the funds for:
(More than likely Marlin Business Bank will also need at least three months of bank statements to verify the cash flow (their requirement is good cash flow and to see that you need the bank statements) as well as average minimum daily balance (their requirement), which may also show "credit strength," although trade references may reveal this. It should be noted their actual application has a statement section, and an upload is required, when I tried the system (1). No mention regarding personal guarantees, consumer credit scores on the website, although required on website application I submitted for a partnership, including SS#, credit card information, and partner's personal information. (1)
(There is a pretty strong Marlin Business Bank disclaimer when you get close to submitting, which may take a while to read and understand, requiring your agreement. It is also time consuming to read, as well as to fully understand. I guess this is typical bank requirements.
(My point is the exaggeration of what was needed, such as a “simple application,” and the short time needed to complete the form was “hype.” It was quite an exaggeration for a bank to put on their website, in my opinion.
Career Crossroad---By Emily Fitzpatrick/RII
Q: I lied on my resume, and now I am scheduled to interview with the employer. I want to come clean, and do not know how to handle. Do you have any suggestions?
A: Stick to this golden rule – be truthful and do not embellish on your resume or public profiles. A sample fib might be adding months/years of employment to minimize gaps in employment or perhaps by adding a job or two appear more suitable for a position. As a resume writer, I advise my candidates that resume integrity is critical. While a resume is meant to portray you in the best light, never under any circumstances lie or embellish.
99.9% of companies will require candidates to fill out formal applications. When completing the form, as an applicant, you are legally affirming your information, e.g. dates and employment history. Lying on a job application is grounds for termination at any point in the future even years later.
If you have submitted your resume to the potential employer, you can:
Rather than fudging the truth, build a resume that sells you. A qualified resume writer can structure your background to show achievements at any level. Demonstrate passion in your correspondence with the decision makers, e.g. reasons you want the role, as employers will often be swayed by determination. You can also utilize your cover letter to address any gaps in employment or other areas that may seem negative.
Your accomplishments and successes will speak for themselves in a properly developed resume and cover letter. There is no need to misrepresent yourself; it will only haunt you in the end.
Career Crossroads Previous Columns
Leasing Industry Ads---Help Wanted
For information on placing a help wanted ad, please click here:
Please see our Job Wanted section for possible new employees.
Leasing 102 by Mr. Terry Winders, CLFP
(Terry retired January 1, 2015. To honor him and his many years of writing for readers of Leasing News, is repeating several of his columns that are still meaningful today. Here is August 14, 2006, with links updated.)
"What good is Lease Education for the back office?"
On many occasions, I have had to thank my lucky stars that a member of my staff questioned what was occurring and therefore saved my bacon. This would not have occurred if I had not understood how valuable education on all aspects of leasing was to my staff. They need not be lawyers, but they need to understand documentation and the purpose of doing it correctly. They do not need to be accountants, but they can find a problem with structuring and pricing faster than you can. A completely trained staff is the best back up in the world. If you train and respect them, they become part of the team ---and not part of the furniture.
Regardless of how many years someone has been in leasing and finance, changes occur every day. New ways to offer and handle the business need constant attention. Management is not always on top of communicating changes. Sending staff to training to refine their tasks and review current changes can support your need to control costs and be on top of your market.
Just staying abreast of changes in documentation can save you time and money and protect the viability of your company.
If you do not belong to a leasing or finance association that offers these courses, have a finance and lease educator come in and do a review of your procedures by having all of the staff explain their function and where they fit in the chain of events. (1) When everyone sees the correct work flow and its purpose, it gives meaning to their jobs. Current changes in the company’s business plan can also be presented that makes everyone aware of the company goals and makes sure they are all pulling the same way.
Usually an outside trainer is best because the teacher is not handicapped by the restrictions of the company's outlook and current and new approaches can be presented.
If everyone is trained to understand leasing and its benefits, then they can be your ambassadors away from the office. A happy employee encourages customers to do business each day because the customers get answers instead of being past off to others. The more professional your staff looks, the better it is for your company reputation. I applaud the companies who help their employee become a Certified Leasing and Finance Professional (2).
Another suggestion I have is to prepare a test for your staff on the rules and regulations, plus questions on your company policy, plus simple questions on types of leases you offer, the markets you prefer --- and then prepare yourself for the results. If you are not surprised at some of the answers, you will be in the minority. A good book to use is “The Certified Lease & Professionals’ Handbook” (3)
One thing is for certain "all the rules and all the competitors change every day" and staying on top of the changes is a full time job. Education and training is a must to a properly run leasing and finance company.
Previous #102 Columns:
CLFP Academy for Lease and Finance Professionals
The Academy for Lease & Finance Professionals (ALFP) is a new product offered by the CLFP Foundation. This three day event is designed to fully prepare an individual to sit for the CLFP exam assuming that the candidate has read The Certified Lease & Finance Professionals' Handbook prior to attending. All of the mandatory sections of the exam, as well as three of the elective sections, are covered in-depth during the first two days. On the third day, the exam is offered, but is not mandatory.
(Leasing News provides this ad as a trade for appraisals and equipment valuations provided by Ed Castagna)
Possession or Sue for Damages, Which Comes First?
By Tom McCurnin
When we repossess a medical practice we engage the services of a broker who is HIPA compliant. The seizing of the collateral before proving damages has always been a chicken and egg thing for many courts.
The court is often unwilling to order possession and damages, so the secured creditor must decide which one he wants. The secured creditor doesn’t know its damages until it liquidates the collateral, and it can’t liquidate the collateral until it knows its damages.
In today’s case, a Federal Court allowed a secured creditor to seize the collateral of a dental practice before it established its damages. The facts follow.
CIT Small Business Lending Group financed the acquisition of a dental practice for Advanced Dental Concepts in 2006. The borrower defaulted in 2011. CIT sued in 2012 and the borrower answered the complaint.
CIT wisely moved for partial summary judgment, seeking only a judgment for possession of its collateral, while preserving its claim for a money judgment. The borrower opposed the motion, claiming the repossession of the collateral was premature until CIT put on some evidence of its damages.
The Court looked at the pleadings and correctly decided that there was no dispute, that the borrower, Advanced Dental Concepts, was in default, but there was a question as to how much damage CIT suffered. The Court ordered the borrower to assemble its collateral for repossession by the secured creditor CIT. Because this was a partial summary judgment, the issue of the exact amount of damages was preserved until another day, presumably after resale of the collateral.
What are the lessons for the equipment lessor here?
First, although there is a chicken and egg dilemma here, this court had no problem with granting a partial summary judgment for possession. This case can be used as authority by creditor’s lawyers.
Second, motions for possession (claim and delivery and/or replevin) are often heard by magistrates, which sometimes tend to over-analyze fundamental issues. A summary judgment is heard by the actual trial judge. The secured creditor might prefer to move for partial summary judgment in lieu of a motion for replevin.
The bottom line is that the court got this issue right. The UCC allows the secured creditor to damages and possession of its collateral, and there is no reason why possession of the collateral cannot occur first. Indeed, it makes perfect sense.
Tom McCurnin is a partner at Barton, Klugman & Oetting
Previous Tom McCurnin Articles:
Top 25 Most Influential Lawyers
Leasing News is looking for nominations for the Top 25 most preeminent lawyers in the finance and leasing business who are still active. This is not a popularity contest or who was the most beneficial, but most influential. We would like a nomination and a minimum of a paragraph of the reasons you consider this person one of the top 25.
The top 50 brands in Quick Service and Fast Casual
The evolution of the limited-service restaurant industry continued in 2014, as traditional powerhouses faltered while fast casuals and other rising concepts asserted themselves as forces to be reckoned with. For the first time in the history of the QSR 50, a fast casual entered the top 10, as Panera Bread leapfrogged KFC to land a spot in the industry elite. Meanwhile, Subway ceded the No. 2 spot to Starbucks after an $800 million sales tumble, Chick-fil-A grew by $700 million to become larger than every pizza brand in the country, and Wingstop claimed the biggest jump of the year, with an 11-spot leap.
Will Voice Mail Become Part of the Past?
Answering Services were the first to take messages, followed by machines that answered the telephone for you that you could access as an answering service, then were part of the telephone system itself, meaning you could retrieve messages more easily. This all happened in the early 1970's.
The New York Times reports that text messaging, IMs, Twittering, WhatsApp, and other forms of instant communication, have changed the process of retrieving voice messages, now considered slow and cumbersome. Google, among other companies, is developing services that translate voice mails into texts and delivers them to e-mail boxes. Verizon offers a service of turning all voice mails on their smartphone into text, so you just bring it up without having to listen (saves time, plus is handy when you don't want it to play aloud in a room). You also have a written record, meaning if they leave an address or another telephone number, you don’t have to write it down.
(Please click on ad to learn more)
Electronic Gift Cards (internet)
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"The foster parents just love him and say he is the perfect dog. Great with other dogs and housetrained and such a loving boy. He knows how to sit and give his paw. He is such a good boy with a gorgeous thick shiny black coat. He really loves a good rub and will la his head on your lap. He is a great boy!!"
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Adopt a Pet
Leasing News Classified
(Leasing News provides this ad as a trade for investigative
NACM's Credit Managers' Index; a Positive Recovery
EverBank Equipment Financing Receivables $2.1B
Warren Capital Receiver Proposals $2.2 Million
Nearly 20,000 Drivers have Lease from Uber
The Disruption Uber Has Brought To The Taxi Business Is Coming To Trucking
Puerto Rico just defaulted for the first time
Oregon already on the path to meet Obama's new clean power goals
Gartner Forecast Worldwide IT Off 4.3% Last Year
Ex-Im Bank faces long road to reauthorization
Television is still king, claiming nine out of ten video minutes viewed
SparkPeople--Live Healthier and Longer
Minerals and their Value
Practice moved to training fields, giving Levi’s Stadium field a ‘maintenance day’
Grant Cohn: For 49ers, this season all about one man
St. Louis Stadium Moves Closer to Reality
Eagles coach Chip Kelly has a growing image problem
Jim Harbaugh 'just striving to coach the football team'
Here's How Much Water Golf Courses, Ski Resorts, and Pools Are Using in California
Apple sets stage for San Jose campus with 15,000 workers
Forty Years and $6 Billion of White Zin
Beyond Red, White and Rosé: Wine Color Decoded
Veseth, Money, Taste, and Wine: It’s Complicated
Balancing traditional vineyard management practices in the modern era
The new West Burgundy Wine Group:
Free Mobile Wine Program
Wine Prices by vintage
US/International Wine Events
Leasing News Wine & Spirits Page
This Day in American History
1735 - Freedom of the press was established in the United States when John Peter Zenger, publisher of the New York Weekly Journal, won an acquittal of the libel charges placed by Gov. William Crosby. The royal governor had tried to censor Zenger's attacks on the British crown.
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Ten Top Stories each week opened the most by readers
- FinPac, Alumni, Friends Get Together, Puget Sound