February 21, 2001

 

 

Headlines----

 

   Preferred Capital/Advance Rentals

       AccessLease.com Becomes Ampent

        Baltimore Technologies and eOriginal Enter WWW Fray

          Citibank Also Picks Up Dell Computer Financing

           Comdisco Gets Serious Class Action Fraud Lawsuit            

             Rents in Fog City Falling After Dot-Com Shakeout

                ( Is Silicon Valley Next? )

 

    Readers Rate the Rodi-Goodman Show------------

 

 

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   Employee Question----

 

After reading your story about the employee inquiring about a new position

at a company she didn't know much about and giving the sound advice of

ascertaining their financial condition etc. before leaving her current

position. It occurred to me that us Lessor/Brokers should take the same

advice relative to funding sources.

Thanks for the great job you do.

Jeff Rudin, Quail Leasing

jrudin@quailcap.com

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    Preferred Capital---Advance Rental Fees

 

 I have only been in the leasing industry for a year and a half, and

all of that time was with Preferred Capital/Lease.  They taught me

everything I know about it.  Recently Mark Seif put out this e-mail about

keeping advanced rentals from customers and I'm a bit confused and concerned

about this practice.  What do you think and what do your readers think about

this kind of activity?  I've attached the company e-mail sent to me for your

review.

 

Also- The rumor around the company is that Preferred Capital will declare BK

this week.

 

Thank you for your help and keeping my name out of this.

 

 ( Name With Held )

 

 

   ( First, I don't think Preferred Capital will go BK.  I think they will

     rise from the ashes.  Mergers/Acquistions are very difficult and time

     consuming. Many leasing companies are having their difficulties with

     funding sources drying up, changing overnight, and credit is definitely

     tightening. I know morale is down among many leasing companies, but

     if you have the right attitude, as the principals appear to have,

     a positive attitude, you can make it in this industry. They have a

     strong bank behind them, and more importantly, everything in place

     to turn things around.  Don't give up.

 

     Advance Rental Fees---wow.  There are legal issues, policy issues, and

     many funders have rules on making payments on time, and this is not

     as simple an issue as it might appear.

 

      I will ask readers for their opinion, but to understand this better I suggest you go to
                           
www.leasingissues.com

            and click on the button "Advance Rental fees."

  

                    or you may take attorney Ken Greene up on his offer:

 

       " I would be happy to discuss this issue with Mark ( Seif), or anyone.

       I am involved in several cases involving the failure of brokers to return security
             
deposits or advance fees.  I believe this is a very important topic and welcome all input

      and inquiries. "Please feel free to call me at 415 925 0700, or to email me.

       " Thank you."

         Ken Greene

         KGreene100@aol.com

 

 

Leasing News has verified that Mark Seif, General Counsel, and former prosecutor

for the Los Angeles District Attorney's office, did write the memo.  Preferred

Capital, perhaps one of the first to use telemarketing and the Plastic Lease

Card, will become a Capital Werks company. You will hear competition complain

about this and that, but remember the funder is the one who bought the deals,

set the parameters ( scores,etc), and there are always two sides to a story,

perhaps many sides. ( Readers, you make up your own mind. editor )

 

 From: Mark Seif

 Sent: Tuesday, February 13, 2001 9:30 AM

 To: Whole Company

 Subject: What Happens to Advance Rentals When Deals Die? And Other

 Important Stuff.

 

 I want to take a moment to answer the above question and reiterate

 our policy regarding this issue because apparently there is some

 confusion. ***** also sent out e-mails last week and today on

 this topic and we both as well as Louis wish to be ultimately

 clear on the procedures for handling advance rentals. First though, a

 couple of general issues need to be addressed.

 

 Please understand we will soon be one company. As such I don't want to

 hear anymore about the CapitalWerks guys said this or CapitalWerks

 policies are different, etc. Soon (in a matter of days) Preferred

 Capital Corporation will cease doing business. It's sad but unfortunately

 there is nothing that can be done about it. The reason is, Preferred simply

 can't continue as a going concern with the millions of dollars of debt

 it has accumulated over the past several months. In fact, had our

 creditors pushed the issue we would have had to file for bankruptcy

 protection and probably close our doors weeks ago. Fortunately, Louis negotiated a

 deal with CapitalWerks that allows the company to survive, all of us to

 keep our jobs, and to rebuild the biggest and best leasing company in

 America.

 

 We are all very lucky to have these opportunities. Let's embrace this

 fact and stop the divisive, negative, and morale crushing comments

 that have been floating around lately.

 

 Simply put, we have collectively to resolve some of the problems

 that invariably come up when two companies become one. And, as you've

 probably heard the old adage, "if you're not part of the solution,

 then you're part of the problem." If this applies to you, do us all a

 favor including yourself -- please leave. The fact is, those of us that

 have been around through everything that has gone on for the last several

 months do not need nay Sayers preaching doom and gloom and bringing

 everyone down. The entire executive management team is committed to

 succeeding in this operation and will not allow a handful of negative

 people to prevent that success. So, please tell us about any

 problems, concerns, or suggestions you may have but do so in a

 constructive, professional way that is intended to resolve the problem and make

 everyone's job easier, more satisfying and more profitable. Do not

 whine, gripe, or complain just for the sake of it. It's not productive and

 will not be tolerated.

 

 Now, with respect to advance rentals, management

 recognizes the need to return many advance rentals to preserve

 relationships for current or future deals, and for fairness or ethical

 reasons. We are willing to do so and will do so on a case-by-case

 basis.

 

 Just present your reasons to Louis or myself and we will

 send back the money even though it's a Preferred liability that technically

 has nothing to do with our new company. Of course, any advance rentals

 received by the new company will be returned to the lessees if the

 deal can't be approved.

 

 What happens when the money is not returned? The advance rentals

 will be applied to commission after 6 months from the date the deal

 was declared dead (lessee notified that we are not going forward with

 their lease). The amount stated on the docs as doc fees will be treated as

 doc fees meaning will be paid at 40%, the rest will be treated as regular

 commission. The legal dept. will receive the requests on the same

 form currently being used, and will sign off that there is no threatened or

 pending litigation and will forward the request to accounting for

 payment to the reps.

 

 Please let us know if you have any questions or comments regarding

 the above or any other matter.

 

 

 

 

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            United Capital Clearing Up

 

There appears to be some confusion with the reports on

United Capital.  Yesterday's information appears to be

about the United Capital that is a division of Hudson

United Bank out of Atlanta.  United Capital, Austin,

Texas, has no connections to this company, Unicapital,

or United Financial.  United Capital of Austin was

started by Steve Dallas in 1997 in Fresno, California

and it was moved to Austin in the summer of 1999.

United Capital of Austin has never been associated

with anyone else.  The only owner is and has been

Steve Dallas.  Apparently, the news of their

operations caught them off guard last week and they

haven't been able to respond.  It's hard to deny the

truth.  Two more employees have supposedly left since

then. 

 

Name withheld

 

--------------------------------------------------------------------------------------

  More JDR

 

I'm sure you'll hear from JDR on this but their relationship with Copelco

was terminated last year when Citigroup took over. I'm not sure who they are

currently using. Our experiences with them indicate that they functioned

more as a super broker than a direct funder. It appeared that they didn't

have internal authority to approve or fund. This, combined with Copelco's

"slower than industry standard" turnaround lead to frustrating service

delays. We haven't had much opportunity to work with them recently since

their credit window tightened but they certainly were a key component of our

service offerings for our first 2 years. Hopefully they can find their way.

We have lost too many funders already.(You may quote me, there's nothing

here that they don't already know.)

 

On another issue, I think that if you're going to print comments like those

below you should absolutely demand that the author's name be used. It's one

thing to protect "insiders" from retribution. It's entirely something

different to allow unmitigated and unsubstantiated funder bashing. I'm sure

you receive plenty of relevant comments with attributions attached. To do

less undermines the credibility of your publication and pushes it into the

realm of "chat room". It's far too easy to throw stones from behind a tree.

*******************************************

John Craine, VP Sales

PowerNet Financial Group Inc.

Your Professional Equipment Leasing Network

http://www.thePowerNet.com

(800)348-2288

Fax (781) 461-9449

JohnC@thePowerNet.com

 

 

 ( We do not allow anything to be said or posted without either knowing the sender,

   personally, or verifying the information from a minimum of three sources, and/

   or speaking directly with the company or people involved.  There are many companies

   we have not mentioned who state United Capital owes them money from deals not

   funded or commission to their brokers, and super brokers who are complaining

   they can't pay the commission because their source, such as United Capital

   or U.S. Capital, have not funded the deal or paid them for the specific deal

   or other deals.  We screen all "name with held" to the best of our ability.  editor.)

---------------------------------------------------------------------------------------

 

 

  The Rodi-Goodman Show

 

 

I would rather Leasing News not print personal attacks.  Though they are quite

entertaining, I think it is counter productive to supporting the industry.

I know Bob can take care of himself.  He does so very well.  I know Ken

Goodman thinks as highly of himself as he states that Bob does.  Maybe this

is a little bit like Andy Kaufman and the wrestler.  Can't we all just get

along?

 

Andrew Thorn

<athorn@nowlease.com>

 

  ( Wow. A great idea. I bet it would be a big draw at the Scottsdale Conference

  to see Ken Goodman take on Bob Rodi in the wrestling arena. Youth and courage

  versus old age and cunning ( at least, that is the way Rodi would see it...who

  by the way, is an ex-cop, Baltimore, Maryland, I believe...but maybe Ken could

  make it a tag team event!!! )

                 +              +               +

 

 

Good grief....do we have to see this gladiator match between Goodman and Rodi every day?  These

guys are supposedly grown men, business professionals and, more than that, representatives of

our "profession" as commercial finance and lease specialists dealing in a very

sophisticated marketplace.  They are both acting like petulant children with "my Dad can whip

your Dad"...grow up!!

 

I am used to having our industry associated with classy people like yourself, Armon Kamesar,

Fred Shieman, Ron Wagner, Bob Skinner, Bob Putnam, Steve Head, etc.  They projected dignity,

integrity, vision and a sense of civility that is sorely missing through this recent scenario.

 

Where is there any value to revealing this kind of inane slander in your publication each day? 

Who is it serving? Are any of us learning even a single lesson from it? Is our industry gaining

prestige with our investors, funders and clients?

 

This has been a very sad display and I don't believe there is any redeeming value for any of us

in it.  Why don't you just help them find a dark alley and let them prove forever who is the

best man (read "child") by beating on each other until one doesn't get up.....won't that prove

more than the verbal shots hiding behind email volleys??   Enough!!!

 

Other than this crap, I really enjoy the terrific service and presentation you give us each

day...keep up the good work and, Keep the faith!

 

 

Larry B. Turner, President

Vision Capital Corporation

lbt@visioncapitalcorp.com

 

 

   ( Just a moment, I never said I was a classy guy.  and I have known Steve Head

   a long time.  He is much a classy guy as Ron Wagner, who I also know.  I also

   knew Fred Sheiman when he was alive ( he was a great guy, but he was a "street

   fighter," too.) Bob Skinner, Bob Putnam!!! Next you'll tell me what a classy

   guy Herb Saltzman was? He did run for five miles each morning through the mountains in

   Mill Valley, California.... )

 

                 +                +                 +

 

 I have been enjoying Leasing News and having a few

chuckles over the Testosterone Boys. Thanks for the laughs we all need then

right about now.

 

 "R. Runyon" <capitallease@adelphia.net>

 

            +               +                +

 

 

            Mr. Goodman sounds like an interesting person-I hope you can point

him out            in New Orleans.

 

  ( name with held )

 

    ( He is definitely "interesting."  I will introduce you to him. editor )

            =             =                =

 

 

Perhaps I do not represent a majority of Leasing News readers, but I would like to suggest that

Mr. Rodi and Mr. Goodman take their "discussion" offline. In my opinion, disagreement and

discussion are inevitable and often healthy.  However, name-calling and insults serve no purpose
except to be inflammatory, and are not worthy of this newsletter.

 

Thank you,

Haley Carter

Cobalt Leasing Program Manager

Sun Microsystems, Inc.

mailto:haley.carter@sfbay.sun.com

 

 

   ( Not worthy?  I mean we are not talking about M&M singing with Elton John? editor )

                  +               +             +

 

 

        +   +                 +

 

As I have enjoyed the Bevis & Butthead (Bob Rodi & Ken Goodman)

show, I have to agree with Ginny Young.  For many years we have all tried

very hard to project an image of professionalism in the leasing industry. 

Both Bob and Ken have initials after their names (CLP) which is supposed to

indicate the most professional individuals in the leasing industry.  The

tarnish which is the end product of this kind of behavior is very hard to get

rid of, even using Brasso, and both Rodi & Goodman are well aware of that.

 

If Bob and Ken want to continue to "duke it out", a more appropriate forum

would be a convenient alley, or a pool full of Jello.  I want the ticket

concession.

 

Mark Speros, GM, Broker Division

Landmark Financial Corporation

Mark@LFCINC.com

 

  ( Mark, How about a wrestling match at the next leasing conference? editor )

 

 

   I think Steve Geller had the right idea yesterday about this, "Those of who know the

"Testosterone Boys" find this amusing and thought-provoking. For those who don't maybe it looks

in bad taste. This is not the New York Times..." I have known Ken Goodman  for many years, and

the same with Bob Rodi. They both have dynamic personalities.   They both have their own strong

opinions, and God love them for it.  Ken is quite  active and helped form the National

Association of Equipment Lease Brokers.  Bob is very active and contributed enormously to the

United Association of  Equipment  Leasing.  Many see the two associations having different

"attitudes", and perhaps this can be underscored in both their opposing views. It is like

having the Gore Vidal and William Buckley on the leasing industry or maybe not.

 

 Inside their humor, are some thought provoking ideas and opinions. Almost like

   one is a Democrat and the other is a Republican.  Why can't they have opposing

   views.  In revolutionary times, Congress literally had fist fights.  The first

   censure was against one congressman spitting in the face of another. Of course

   we have changed since then. Alexander Hamilton would not call Aaron Burr a

  gonif.editor

 

 

      Did you know we also have cartoons.  http://www.leasingnews.org/cartoons.htm

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AccessLease.com Becomes Ampent (tm); Releases Capital Acceleration

Platform(tm)

 

Company Accelerates the Current of Capital

 

 

SAN FRANCISCO, CA. - February 21, 2001 - AccessLease.com today changed its

corporate identity to Ampent (www.ampent.com <http://www.ampent.com>) and

completed its transition from a traditional lease intermediary to a

principal provider of private-label, automated financing solutions with the

release of their Capital Acceleration Platform(tm) (CAP). 

 

"Ampent's new identity delivers upon our mission to offer the best-in-class

business platform for the automation of ng the financing supply chain," said

Troy Klith, Ampent CEO/Founder.

 

"We've evolved from a traditional leasing intermediary to develop

technologies and services that focus on solving our partner's core needs:

the rapid fulfillment of their customers' financing with the widest

selection of equipment-lease products the industry has to offer," Klith

said.  "Ampent's new identity reinforces our direction and provides a

corporate umbrella for all our leading-edge products and services."

 

Along with its new identity, Ampent unveiled its Capital Acceleration

Platform(tm), the first complete point-of-sale leasing solution, providing

vendors, manufacturers, banks and B2B Exchanges with an instant, automated

lease-financing alternative.  The CAP brings the lease transaction closer to

the point-of-sale and, through Ampent's diverse Wholesale Funding Network,

increases equipment vendors' and manufacturers' lease approvals, while

providing competitive, risk-adjusted pricing. 

 

"Ampent's Capital Acceleration Platform is a winning solution for vendors

and manufacturers who will increase their sales as their customers enjoy

instant approvals, affordable financing, and quicker access to their leased

equipment," said Todd Lowdon, Vice President, Business Development.

 

About Ampent's Capital Acceleration Platform(tm)

 

Ampent's Capital Acceleration Platform(tm) (CAP) is an automated platform

solution that accelerates the distri