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Over 113 tuned in to “Meet the Leasing News Maker” on Thursday at 1pm, California time. More than 60 stayed longer than an hour. The first time session was expected to bring 25 to 50 on line, but Bill Hanson of Commercial Money Center had a major announcement. “We are still experiencing delays and we've decided to give all the advance rentals back to the customer until we are ready to fund in 72 hours, “ he announced. “Starting today and going through next week… UPS starting today” “We are hoping 30-60 days and all lessees will be contacted to see if they want to move forward with the lease. If they do all broker commissions will be paid, “ he added. The audience appeared quite surprised. “Wow!! That is a big announcement! “ [Bill Hanson ANSWERS] “I have seen many companies in my 20 years not "do the right thing” morally...I think giving back the money is rare” I have seen many companies in my 20 years not "do the right thing” morally...I think giving back the money is rare “ Ironically, September 11 was Bill Hanson’s 62nd birthday. “It has affected us greatly due to the banks concern about the Insurance companies maintaining their rating, “ he explained. The summer funding was to have been September 14th, it then was postponed several times to November 14th, and then to December 15th. ] “Some transactions that came in June funded in late July, the rest were waiting for the pool in September when tragedy hit...we funded over 100 million through June.” Hansen fielded many tough and direct questions: “Is CMC currently not funding transactions and effectively out of business until surety issues are resolved? “ [Bill Hanson ANSWERS] “Out of business is a strong word, we are far from out of business we are still accepting applications and intend on processing them and funding them We are returning everyone's advance rentals “ >> INTERVIEW [SUBMITTED QUESTION] “ So you are still accepting applications? “ [Bill Hanson ANSWERS] “YES, please support us and we will support the brokers.”
“ Everyone talks about CMC being the last resort, what does the credit look like and roughly what would be the rate “ [Bill Hanson ANSWERS] “500 fair isaac..closed BK....several NSF's..... released tax liens and judgments.........we have a rate factor ...like renting an apartment .03630 for 64 months… we only have 64 months...we are trying to get our shorter leases back “ “It takes 5 to 6 weeks because we sell the transactions off in pools of 5 to 10 million and this is after all documents are correct “ “ Have faith CMC has shown good faith by returning the advance rentals and they will come through. And CMC in the last 3 and 1/2 years has funded over 300 million.” “Is the Tampa office going to remain open, I find it very convenient “ [Bill Hanson ANSWERS] “We have NO current plans of closing any of our offices.” “Is CMC currently not funding transactions and effectively out of business until surety issues are resolved? “ [Bill Hanson ANSWERS] “Out of business is a strong word, we are far from out of business we are still accepting applications and intend on processing them and funding them We are returning everyone's advance rentals “ : “How, exactly, does CMC manage to insure against the obviously risky credits? “ [Bill Hanson ANSWERS] The performance bond issued by the insurance company guarantees the banks each and every payment to the bank “Does this mean that ALL companies that have deals waiting for funding will be refunded their advance monies????? “ [Bill Hanson ANSWERS] “We will start with transaction in funding, when this process is done if we are still under a delay we will then issue the transaction in processing “ “I have heard stories about vendors having to wait for 30 days or longer to get paid, is this due to the nature of your credits or your funding sources “ [Bill Hanson ANSWERS] “Yes, It takes 5 to 6 weeks because we sell the transactions off in pools of 5 to 10 million and this is after all documents are correct.” ] : “What about all the vendors who have delivered equipment 6 months ago? “ [Bill Hanson ANSWERS] “Good question, we have not given up on being able to fund these transactions and we feel most vendors will be paid We are refunding the lessees advance rentals, but still trying to move forward and fund them as soon as possible” ] “How do you suggest we handle the vendors who now have used equipment and no funding? “ [Bill Hanson ANSWERS] “We're giving you the money back so the lessee can control his or her destiny, while we try our hardest to get it funded ASAP “ “Why would a broker submit a deal if funding is unsure or never? “ [Bill Hanson ANSWERS] “Your job is to get approvals and we usually only like to look at deals that are headed for your trash can....SO, what's to lose? “ :”What's to loose? Only a good vendor relationship “ [Bill Hanson ANSWERS] “TRUE TRUE TRUE TRUE That's why you have to be completely honest with your vendor. do you tell your vendor your taking to them to CMC?” “ How long before all checks are returned?” [Bill Hanson ANSWERS] “We are cutting them as we speak” “Okay, what would you say to a lessee on funding? 30, 60 days, if at all?! “ [Bill Hanson ANSWERS] “I'd say 30-60 days and that's what the letter will say that’s going to be with the check “ “When you said the advance rentals will be returned does that include the doc fees as well? “ [Bill Hanson ANSWERS] “No, we plan on funding these deals. Doc's and Quik Trac have been paid and done “ “ If they could make question to you is...Why did you bring them here? By keeping doc and quik trak fees, aren't you holding the lessee's feet to the fire to continue to work with you? “ [Bill Hanson ANSWERS] “First, we are not walking away from the lease and from our experience these lessees can't” “Approximately how many advance rentals will you be returning? “ [Bill Hanson ANSWERS] “All of them “ [SUBMITTED QUESTION] “Will you fax copy of lessee letter to broker? “ [Bill Hanson ANSWERS] “We are working on a letter for the broker and the vendor! We want to keep everybody working together! That's what America's all about “ “Since I was late.............is there even a "realistic" time frame for the deals that have been in the funding process for several months? “ [Bill Hanson ANSWERS] “To fund? 30-60 days...to get their money back? 2 to 10 days “ >> INTERVIEW [SUBMITTED QUESTION] “: Do you have any suggestions as to where to place some of these deals? “ [Bill Hanson ANSWERS] “Contact me and I will be more than happy in trying to help...1-800-856-0907 “ >> INTERVIEW “What are the odds of you being able to straighten everything out??? “ [Bill Hanson ANSWERS] “Excellent “ These are only excerpts from the transcript, which is not available to the public. Here is the “ Meet the Leasing News Maker “ introduction to Bill Hanson: I have been in the leasing industry since 1982 making me a 20-year veteran. I graduated from Ottawa University and have a Masters degree from Pittsburgh State. After completing my degree I went directly into teaching and coaching. I spent 15 years coaching basketball on all levels from High School to Professional Ball, working in the camp system with the Milwaukee Bucks. My coaching career came to a screeching halt in my early 30's, under doctor’s advice, after suffering a heart attack in 1973. My passion was coaching, but my love is my children (I have seven children and 12 grandchildren). So, the decision was easy to stop coaching with no regrets! I also thoroughly enjoy the leasing industry and care about the people involved. Leasing is similar to coaching with the aspect of being able to help people and I enjoy watching their business (skills) grow. I started my leasing career with Heritage Leasing under Ron Wagner and my life long friend Gil Evans. They sold Heritage to Imperial in 1995. I decided my skills in leasing were ready to branch out on their own and I started my own company in 1996. Once I worked out the kinks and started to roll, I brought my son, Ty on board. I know the old saying” that you shouldn't work with friends or family", but it's been a great experience for both of us and I highly recommend it! In 1999, we sold the company to Commercial Money Center. Commercial Money Center's goal is to become a one-stop do all leasing company. Right now, we are trying to capitalize the C and D market. Our niche is tying challenging credits in with surety bonds that enhance the transaction so we can sell them off to our banks! Trying to do the deals the mainstream WON'T can be difficult and challenging at times, but we are determined to get the challenged credit deals to fund timely and as simple as A B C!
Bill Hanson The full story on Commercial Money Center, go here: www.leasingnews.org/Conscious-Top%20Stories/CMC_stories.htm
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