Monday, September 8, 2014
Today's Equipment Leasing Headlines
1993 - Pictures from the Past
Broker/Funder/Industry Lists | Features (writer's columns)
You May have Missed---
######## surrounding the article denotes it is a “press release”
and was not written by Leasing News nor information verified, but from the source noted. When an article is signed by the writer, it is considered a “by line.” It reflects the opinion and research of the writer.
Please send to a colleague and ask them to subscribe to our news
1993 - Pictures from the Past
Balboa Capital Corporation, VP Finance Shawn Giffin, CLP (left) congratulates President Patrick E. Byrne, CLP. The Western Association of Equipment Leasing member firm was recently ranked #67 overall on the Inc. 500 list.
Firms: Balboa Capital Corp.
Shawn Giffin, 45, passed away Thursday, June 17, 2010.
(These ads are “free” to those seeking employment
San Diego , CA
All “free” categories “job wanted” ads:
Sometimes Lawyers Give Themselves a Bad Name
In An Obviously Correct Ruling, Utah Federal Court Reached the Obvious Conclusion That Equipment Lessor is Not Debt Collector for Purposes of Fair Debt Collection Practices Act
Pettingill v. Northern Leasing Systems, Inc. 2013 WL 4084754 (D.Utah, 2013)
Today’s case is stupidly simple case in which Northern Leasing Systems apparently leased equipment to a lawyer, Scott Pettingill. Pettingill defaulted, and after Northern Leasing filed a State Court suit, Pettingill filed his own Federal lawsuit alleging that Northern Leasing was required to be licensed as a debt collector under the Fair Debt Collection Practices Act.
As ridiculous as the case sounds, the Federal Judge analyzed the issue and threw the Lessee’s case out of court.
Under the FDCPA, a debt collector is any person “who regularly collects or attempts to collect debts owed to another. The Lessee did not allege that the Lessor attempted to collect a debt owed to another, but merely contended that the Lessor filed a lawsuit against him. Since an action based on the FDCPA must be dismissed if the Defendant is not a debt collector, the Court correctly dismissed the action.
I have no lessons for the equipment lessor here, other than sometimes lawyers give themselves a bad name.
Tom McCurnin is a partner at Barton, Klugman & Oetting
Previous Tom McCurnin Articles:
Top Stories August 25--August 29
(1) Enverto Introduces IMCA Express
(2) New Hires---Promotions in the Leasing Industry
(4) Leasing 102 by Mr. Terry Winders, CLP
(5) Archives--September 3, 2002
(6) Crestmark to Acquire Michigan-based TIP Capital
(7) Advertisement---19% Looking for Equipment Financing
(8) Lease Accounting Changes May Trip Up Bank Loans
(9) Mike Fleming October 24, Naples, Florida
(10) Phablets are going to be bigger than tablets, laptops,
One of the problems with having a small portfolio of your own comes from the responsibility to manage the portfolio for accounting purposes. Leasing is not lending and requires knowing where “each” leased equipment is at any moment for property tax and sales tax purposes. You may have one lease with multiple pieces of equipment in multiple locations. This is one of the reasons master leases are used with location dictating what equipment is bundled together for each schedule.
In some States, where sales tax is collected and remitted, having the ability to separate the tax into each jurisdiction is a necessary evil. Property tax assessors will stop by on occasion to check your records to see what assets you have in their jurisdiction. Therefore, an accounting program that can handle loans is customer based. Commercial equipment leasing needs to be asset based. There are companies who will perform this service for you.
Lease accounting programs are not cheap, but most of them come with the ability to select parts that fit your needs, and you will not have to purchase parts that you do not need. In addition you need to have personnel that can use the accounting program and can operate it daily.
You also need to separate the different type of leases for accounting because of the different information required. Tax leases have tax depreciation that is different than book depreciation, which requires a different early termination value. Municipal or tax free transactions are different than tax or nontax deals. TRAC leases are different because the residual is guaranteed.
Collection is difficult without the ability to determine the current status. In addition, back office supplies and documentation add an expense that means before you decide to maintain your own portfolio, you need to determine how large the portfolio needs to be so that it creates sufficient profits to pay the freight.
Sometimes it is best to farm out the accounting function where you can pay as you go. Generally, they charge to book and maintain each transaction and can do both property tax compliance and file sales tax returns. This requirement is increased because as you add additional States for new business, you must quality to do business in those states and complete business income tax forms.
Having a small portfolio is attractive until you see the cost to maintain it. Many lessors utilize companies who specialize in these functions,
Mr. Terry Winders, CLP, has been a teacher, consultant, expert witness for the leasing industry for thirty years and can be reached at email@example.com or 502-649-0448.
Previous #102 Columns:
(This ad is a “trade” for the writing of this column. Opinions
Back Office Companies--Classified
Back Office Companies
For information on placing a help wanted ad, please click here:
“How Do I Exit an Interview Ending?”
Question: Can you give me some advice on what to do when an interview is ending? I am never quite sure how to exit the interview.
Answer: The goal of the candidate should be to leave the right impression; a professional and memorable one. A company rarely hires the first competent person. Unless you are the last person to be interviewed, the impression you make will fade with each subsequent candidate. So make sure your exit is a graceful and an impressive one. Confidence and openness should characterize the strategy for the "close.” This is an opportunity to continue the “bonding” process with the interviewer, and an opportunity to tell the interviewer anything else that you feel is important to your candidacy.
Note: the more the interviewer likes you, the more information they will provide without asking, e.g. additional interviews, benefits, future goals, etc.
Most often, the signal that the interview is drawing to a close comes when you are asked whether you have any questions. Use this to you advantage.
Asking questions will give you the opportunity, once again, to highlight your strengths and show your enthusiasm.
You want to thank the interviewer for taking the time to meet you, express your excitement with the organization / department, and get information on the decision process.
For more advice and sample do’s and don’ts, feel free to contact us firstname.lastname@example.org
Career Crossroads Previous Columns
Certified Lease Professional Circular Issued
“2014 has already been an exciting year for the CLP Foundation. We have received 38 CLP applications, have successfully organized and staffed 3 Institutes for Leasing Professionals on behalf of the National Equipment Finance Association (NEFA) and have had 31 people sit for the Certified Lease Professional exam.
“ECS Financial hosted our first ILP of the year the last week of July. We owe a great thanks to Nancy Geary, CPA, and her team for a fantastic event in the Chicago area. I would also like to recognize and thank the instructors of this ILP: Dennis Dressler, Esq., Nancy Geary, CPA, CLP, Marc Keepman, Chris Maudlin, CLP, Matt Padden, CLP, Ken Peters, Esq., and Brian Schonfeld, CLP. There were four candidates who sat for the exam and I am proud to say that all four passed.
“My team at Banc of California was honored to host the second ILP the first week of August. There were twenty participants in the ILP followed by thirteen candidates that sat for the exam. Of these candidates, eight passed. I would like to recognize and thank the instructors of this ILP; Steve Tidland, CLP, Andy Alper, Esq., Doug Houlahan, CLP, Joe Schmitz, CLP, Tamara McCourt, CCE, CLP and Jenny Wood CLP. Lisa Whitehead, CLP proctored the exam and Amy Spragg, CLP and Jaimie Haver, CLP were essential in coordination of the event.
“The third ILP of the year was hosted by Financial Pacific Leasing and spearheaded by Terey Jennings, CLP. I would also like to thank the instructors there: Jeff Bartholomew, CLP, Brian Black, CLP, Pete Davis, Terey Jennings, CLP, Samantha Nettles, CLP, Virginia Piazza, CPA, CLP, John Rosenlund, CLP, Lia Wax, CLP, Jenny Wood, CLP, Terry Wood, CLP, and John Wright, CLP. There were four participants and the one individual who sat for the exam, passed.
“The fourth and last ILP that the Foundation is assisting NEFA with in 2014 is being hosted by FSG Capital in Baltimore, MD on October 11-13. We are currently looking for instructors and participants for this event. Please reach out to Reid Raykovich CLP at 206.535.6281 to find out more information on how you or someone you know can be involved.
“Additionally, Amy Spragg CLP, Chris Lerma CLP and I have been working on updating the CLP exam to increase clarity. For those of you who remember the scale of the exam, this has been a large project that is close to completion and will further our efforts to promote and grow the Foundation.
“Indeed, 2014 continues to be an exciting year in the life of the Foundation. Thank you for your active participation in living the professional example of what it means to be a Certified Leasing Professional.
“Best continued success,”
David Normandin CLP
((Please Click on Bulletin Board to learn more information))
CEO age continues to be more than just a number
A SNL Financial Exclusive Report
While CEO age has always been one of the elements involved in bank M&A deals, it may be an even bigger factor today in determining which banks are likely sellers.
The age of CEOs that are potential sellers is still "a pretty big thesis" impacting bank M&A today, Nishil Patel, an analyst at Keefe Bruyette & Woods Inc., told SNL. The potential sellers list compiled by Keefe Bruyette & Woods is often marked by CEOs that "tend to be pretty old," he said. The average CEO age in selling banks recently was about 65. "And I think once you start getting to 66, 67, 70 and onward it really starts to become a much bigger factor and people look for them to sell," he said.
The average age of a selling CEO in the nine largest deals from early 2012 to early 2013 was 64 — compared to 58 for the average small and mid-cap CEO, according to analysis conducted by Keefe Bruyette & Woods in 2013. Patel said the analysis has not been updated recently, but he believes 2014 deals would support the findings.
Closely held banks & thrifts with CEO's at least 65 years old
At least two recently announced deals involved sellers with CEOs that were 65 or older and where insider ownership was at least 30%. Marietta, Ohio-based Peoples Bancorp Inc. on Aug. 4 signed a definitive merger agreement under which it will acquire Wilmington, Ohio-based NB&T Financial Group Inc. And Rockland, Mass.-based Independent Bank Corp. announced Aug. 5 that it agreed to acquire Brighton, Mass.-based Peoples Federal Bancshares Inc.
Lafayette, Ind.-based LSB Financial Corp., with insider ownership at 28.11%, is led by 65-year-old President and CEO Randolph Williams. The company announced June 4 that it would be acquired by Old National Bancorp.
Flynt Gallagher, president of Meyer-Chatfield Compensation Advisors, told SNL he agrees that there could be occasions when CEO age does affect a bank's decision to sell. This is especially true as baby boom generation executives retire and board fatigue sets in to some degree. He said situations in which a bank has not prepared for the succession of executives, directors and even shareholders exacerbates the problem. "Additionally, the realization that any potential merger will not provide 5x book — as many banks identified in their business plans in the event of a sale — coupled with the increased cost of regulatory compliance, contributes to the easy solution to sell and take their toys and go home," he said.
Fairmont, W.Va.-based MVB Financial Corp. President and CEO Larry Mazza said the older average age of the leadership teams in markets such as western Pennsylvania compared to some areas where leaders tend to be younger, including Baltimore/Washington, D.C., is a definite factor in M&A. He cited a recent study that suggested 50-year-old CEOs merge because they want to be part of the larger bank's leadership team, 60-year-olds sell so they can cash out and retire, while those in their 70s and older tend to stand pat.
Keefe Bruyette & Woods' Patel said CEO age in selling banks is typically one of the larger factors in a bank's decision to seek a partner. And it tends to be smaller banks of less than $2 billion or $3 billion in assets where the age factor comes into play simply because of the way those companies are structured. Larger banks usually have succession plans in place, and so the idea of the CEO selling out is far less of a possibility, he said. "With the smaller banks, sometimes they're family-run and maybe they don't have their kids working there," he said. "And if the leadership is older it makes more sense, especially if there is no succession plan in place."
Terry Stroud, a former OCC and OTS regulator and now CEO of Dallas-based consulting firm Opportunity Group, told SNL the departure of the older generation of bankers is leading to a change in personality among bank leadership teams across the sector. People who used to want to be bankers did not have many of the same basic personality traits as those entering the business today, he said. Risk quantification and minimization is the No. 1 concern of young bankers today, compared to the prior generation that worried first about how to help communities and businesses grow. "My generation thought about making or creating something," he said. "That is not the mentality of today's younger banker."
"I am a neutered male, yellow and white Labrador Retriever mix."
Humane Society of Utah
Adopt a Pet
So You Wanna Buy A Franchise?
Credit Markets Need an Alternative to Libor — Fast
At Alibaba, the Founder Is Squarely in Charge
SparkPeople--Live Healthier and Longer
5 Healthy Habits That Fight the Signs of Aging
The game was tied in the bottom of nine
"Do something Ben, murder the ball,
He dug in his right foot then positioned his left
The pitcher glared in, the Ump hunkered down
This is the sum that the game's all about
John W. Knight
Serena Williams wins 3rd US Open in row, 18th Slam
Tony Romo bad, Cowboys embarrassing in opening loss
San Francisco 49ers fans take over Cowboys’ AT&T Stadium
Raiders fall to Jets in season opener, 19-14
Falcons' win over Saints more entertaining than enlightening
Miami Dolphins maul New England Patriots on both lines of scrimmage
Joe Flacco critical of himself, Ravens' offense in loss to Bengals
Ben Roethlisberger shows leadership rallying Steelers
Bears Lose---Rosenbloom Things Season is Over
After win, Ducks leapfrog Alabama for No. 2 spot in the AP Top 25 Poll
California may tax drivers mile by mile
Los Gatos nudist colony running dry in California drought
Five New Destinations for Wine Lovers
The ripening wine industry in Colorado
Free Mobile Wine Program
Wine Prices by vintage
US/International Wine Events
Leasing News Wine & Spirits Page
This Day in History
1565 - Spanish explorers led by Pedro Menendez de Aviles founded St. Augustine in Florida, the first permanent European settlement in North America. St. Augustine was founded 42 years before the English settlement of Jamestown in Virginia.
The object is to insert the numbers in the boxes to satisfy only one condition: each row, column and 3x3 box must contain the digits 1 through 9 exactly once. What could be simpler?
How to play:
Refresh for current date:
See USA map, click to specific area, no commercials
Real Time Traffic Information
You can save up to 20 different routes and check them out with one click,
Ten Top Stories each week opened the most by readers
- Banks Turn Toward Leasing for More Profit