June
01, 2000
-- Rodi Popular/ Wilbur makes peace plus Bishop, Menzel, Teichman,
and Thelma too. --
Kit,
I was out of the office last week -- sorry for the delay in getting back to you.
As usual, your sources seem to be "on the money". I also understand that the purchaser
is Sovereign Bank and the transaction is to close by 6/30/00. The question remaining
is employee retention and ongoing activities. I hope that your sources are correct
(i.e., New England Capital will continue to offer funding to financial intermediaries).
Best regards,
Dennis
Dennis
Cesen cesend@firstinterbank.com
((
yes, but it most likely will be through Sovereign Bank, who I am told wants to
become more aggressive with "select" brokers ( Rob Yohe leaseconsultant@yahoo.com
) ---editor )
Kit: Regarding Bob Rodi's message about funding sources. This industry has always
been guided by one precept (NAELB's efforts notwithstanding), and that is The
Golden Rule ("He Who Has The Gold Makes The Rules").
Something else lessors and brokers should keep in mind. There ain't no such thing
as non-recourse. Especially in these days of overwritten broker agreements, heightened
reps and warranties, and increasing delinquencies.
So I totally agree with Bob; be comfortable with your deals before you send them
to your lenders, if you want to sleep nights.
Bob
Teichman BoTei@aol.com
In
response to Bob Rodi's e-mail. We have had very similar experiences and know that
we must protect our interest first. If we do this we will almost be certain that
we are also protecting the interest of our funding source. We have learned that
programs that are too good to be true are too good to be true. The damage of losing
a funding source, regardless of whose fault it is, is severe. Protect the interest
of your own firm and funding sources will be lining up to do business with you.
Andrew Thorn
President
Thalman
Financial, Inc.
athorn@nowlease.com
In
re Rick Wilbur - It is not about "trust and respect" ... it is about managing
risk in an increasingly uncertain economic environment. The Federal Reserve Board
has been promoting higher credit standards and their latest survey has shown that,
indeed, lenders have tightened credit. This is what "the World's Chief Credit
Officer", Mr. Alan Greenspan, wants to see happen. We can complain and try to
buck that trend, but I assure you that he has more influence on the market than
Rick or I do. Requiring personal guarantees on a closely held corporation is one
of the ways we are all seeing credit tighten ... whether we like it or not. Times
are a changin' and lets just hope the duration of this change is short. Hang in
there ya'll.
Sincerely,
Paul
*************************************************
Paul
J. Menzel, CLP
Senior Vice President / General Manager
Leasing Division
SANTA BARBARA BANK & TRUST
P.O. Box 1199
Santa Barbara, CA 93102-1199
1 South Los Carneros Road
Goleta, CA 93117
(805)560-1650
paulm@sbbt.com
Subject: Leasing
News---Rick Wilbur Shares a Recent Experience Kit,
speaking as a lender, I don't know Mr. Wilbur but I think he is fortunate that
this is the first time he's experienced such a reaction. I saw this adversarial
relationship coming in 1997 about the time funding sources were throwing all reasonable
credit standards aside. I don't have a lot of sympathy for the funding sources
who allowed brokers to manipulate their shops and put them in difficult times
today, however, the funding sources clearly blame the brokers. While I don't agree
with those conclusions, I think the attitude Mr. Wilbur encountered is prevalent
within the lending industry for many who are having to explain to their boards
why they earned such high bonuses for earlier volumes, and now must write off
the mistakes made as a result of attracting those numbers-not an easy task to
do. Brokers should remember that while they might find short term gains as a result
of some one with lower credit standards, generally there is a long range price
to pay for both the lender and the broker. You are a magician with words and I
hope you can convey Mr. Wilbur's final sentence to all you come into contact with.
Good
Luck !!
Jerry
Bishop
jerry@firstbankrichmond.com
(
Rick Wilbur Last sentence: "If the funders can't trust and respect the originators
and the originators can't trust and respect the funders we're all in for a very
rough ride." )
CODA---Rick Wilbur's Response:
Kit:
Thanks for publishing my e-mail. During the past day and a half I've had a number
of interesting phone calls. I'd like to share one in particular.
I
received a call from the President of the funding source I had the problem with.
He was both gracious and sincerely apologetic for the entire episode. Apparently
his company is struggling with making the transition from broker /lessor to funder
and has suffered a few hard knock lessons during the recent past. He admitted
that their reaction was inappropriate and personally took full responsibility
for their actions.
We spoke for a few minutes and before long realized we both perceived the industry
in much the same light. We both learned from the experience. He was a gentleman
and treated me with the respect I believe I deserve. I was encouraged by his approach
hope we will do business in the future. Funny how things work out sometimes.
I
hope you'll publish this as well.
Rick
Wilbur
Managing Partner
Media Capital Associates,LLC
www.mediacap.com
(800) 836-7753 ext. 104
