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August 31, 2001 Kit Menkin’s Leasing News www.leasingnews.org Friday, August 31, 2001 --------------------------------------------------------------------------------------------- Leasing News is also sent by e-mail, with “This Day in American History” in the e-mail signature. We celebrate birthdays, events in history, and get your ready to answer questions on “Who Wants to be a Millionaire.” To subscribe, send us an e-mail or use the contact us button above _________________________________________________________________ Headlines---- Louis Schneider of Preferred Lease Exclusive American Express Business Finance—Yes, a tree on a desert island makes a sound when it falls---- Keeping your Computer and software Up to Date/ Jerry Whitley CitiCapital Sells Canadian Fleet Management Operation to GE Capital Fleet Mutlitstate Tax Commission Conference Call Friday---Odds and Ends “Early Bird” Last Day/ United Association Equipment Leasing San Antonio Conference ### denotes press release ____________________________________________________________ Louis Schneider Exclusive Interview---- Preferred Lease in its hay day was doing $12 million a month with their best month $18 million, according to Louis Schneider, one of the founds and present chief operating officer. The plastic leasing card idea that the other founder David Murray discovered was originally being used by T rans Leasing International, Inc., of Northbrook , Illinois , and the card was the LeaseCard. “ We basically were a marketing company, “ Schneider explained. “ We were not interested in the back end, carrying leases, or even approving leasing. Our financial statements reflected a marketing company, not a lessor.” Consultants and advertising industry friends were hired to develop a “model”, a master marketing plan, that was then taken to companies such as Dun and Bradstreet, where groups were identify who would lease, who would be already a “good credit,” and then the lists were further re-defined, according to various “models” that were developed. “ I would originally go to funders and ask what kinds of leases' did they want,” Schneider says. “ They thought I was crazy. We wanted to fulfill what type of customer they wanted on their books. Instead, they gave us their ‘vendor score card’ system and rates. “Others would say we want a score of 620, four years in business, low 4 in the bank, no restriction on guarantees or collateral, or whatever their definition that they wanted for say 11 ½% return.” The operation was to take young people, not in the industry, train them in telephone marketing, in leasing, responding to the leads generated by specific mailings, not just bulk mail, but following the lists Fair Isaac or other scores, very similar to now bank card mail solicitations. “ We did over $120 million with Advanta over a fourteen month period,” Schneider summarizes. “ They had a full time supervisor and two credit people right here in Lake Tahoe.. All of a sudden, one day, the federal regulators walk into Atlanta Bank, tell them there are too may sub-prime mortgages and to close down the operation, including equipment leasing. “Advanta was buying like crazy, selling the leases off, putting them into securitization, and has a $50 million in warehousing when this happened. It not only put them into a spin, but they were our sole source at the time. We had a bank line, but we had this momentum going, and I remember this day very well, May 30st, it hit us hard. The down market came at the same time. We found ourselves living on the advance rentals until Jim Raeder came along with some investors and saved our company. “We are back to doing what we do best, market leases. As far as our portfolio at Advanta, I think much of it was sold off. People like Rudy Trebels also bought from us via Advanta. They chose the credits. I think the portfolio is performing well, but remember, we are not a “back-end” leasing company, we are a “front room” marketing company and I think we are the best in the business.” __________________________________________________________________ American Express Business Finance Tree Fell/Sound Heard "A high ranking executive with Amex has verified that Amex is investigating possible problems with the portfolios of RW Professional Leasing and the Republic Group. There is no cover up attempt on the part of Amex, but in fairness to everyone, the issues have to be thoroughly investigated before any public comment can be made". American Express Spokesman Statement----Name Withheld --------------------------------------------------------------------------------------------- Ask Jim Raeder? "What did RT at Amex mean when he referred to the RW Professional Leasing and Republic Group problems in his August 23rd conference call to all the Amex sales and administrative people?" Leasing News Reader Name Withheld -------------------------------------------------------------------------------------- ***I get that feel from what your putting out in front of us, hopefully everyone realizes that. Its nice to see rebuttals like today, very funny and interesting....what’s that old saying " if it walks like a duck...." TP ( Name Withheld ) ( Jim Raeder Reaction from Readers on Tuesday. editor ) --------------------------------------------------------------------------------------------- Virus---If you get this e-mail, do NOT open it Hi! How are you? I send you this file in order to have your advice See you later. Thanks text/plain 8 c:\temp\86210724.txt test/plain 289 intraScan-Disclaimer.text ----- Our Intra-Scan caught it, but your program may no. Don’t open it up: receiver, InterScan has detected virus(es) in the e-mail attachment. Date: Thu, 30 Aug 2001 16:21:59 -0700 (Pacific Daylight Time) Method: Mail From: <trixterg@bellsouth.net> To: <Kitm@americanleasing.com> File: obituary2.doc.bat Action: clean failed - deleted Virus: TROJ_SIRCAM.A --------------------------------------------------------------------------------------------- Keeping your Computer and software Up to Date One of the most frustrating facets of computers is keeping current on the hardware and software needs. In order to keep your business operating efficiently to meet all of your customers needs staying updated in both areas is a must. a.. Software 1.. Windows update from Microsoft http://windowsupdate.Microsoft.com/ will keep your windows up to date. 2.. CNet: http://catch-up.cnet.com/ this is a free service it will go look at all the software on your computer and tell you if there are any updates for any of your software. 3.. I get asked about Beta updates, I do not recommend this unless you have a problem you are trying to fix. a.. Hardware 1.. Hardware is a different story. I have not found a reliable source that checks for updates on all your hardware. I recommend going to each of the manufacture's web page and checking for updates. This includes mouse, sound card, modem, mother board, video card, keyboard, USB devices, printers, and any other devices you may have hooked up to the computer. 2.. A lot of hardware companies supply auto update software like 3com, Logitech, soyo, Microsoft and many others. Look for this on the box when you buy new hardware. 2.. Please don't forget to backup your data and do a virus check before you install any updates.
Jerry Whitley (The Computer Guru) Technology Consultant Albany Guru Technology, Inc 229-435-3961 Fax: 229-436-4010
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--------------------------------------------------------------------------------------------- Mutlitstate Tax Commission Conference Call Industry members are invited to participate in a conference call with the Multistate Tax Commission (MTC) to discuss a proposed rule for determining priority of sales tax credits when leased equipment moves between taxing jurisdictions. This MTC proposal has been revised to specifically include automobiles before it is adopted by the Streamlined Sales Tax Project(SSTP) subcommittee writing the uniform definition of leasing. This conference call with the MTC Sales and Use Tax Subcommittee is scheduled for Tuesday, September 11, 2001 from 2:30 to 4:00 PM Eastern Time (1:30 PM Central, 12:30PM Mountain, 11:30 AM Pacific). To receive dial-in instructions send your name and company to brown@elamail.com. If you do not want your company name shared with MTC in advance of the call please indicate in your request for dial-in information. I expect leaders of the conference call will be Claire Hasselholt, Washington Dept. of Revenue and Adina Christian, Texas DOR. The agenda is as follows: I. Welcome II. Public Comment Period III. Explanation and Discussion of Proposed Rule for Determining Sales/Use Tax Priority Regarding Leasing Transactions IV. Other Matters Pending Before the Subcommittee V. Adjournment The following is taken directly from the official MTC notice sent to state departments of revenue. It explains the purpose of these proposed rules and provides text of the proposals. STATEMENT OF BASIS AND PURPOSE: Establish standard rules for allowance of sales and use tax credits [insert your state statute] on leasing transactions where, after lease origination and at least one month of use, the leased property is moved from one state of the U.S. to another state. The rule shall be applied transaction by transaction, and no excess credit may be applied from one transaction to the tax due on a different leasing transaction. The result should avoid double taxation of the same transaction, provide a basis comparing states that apply tax at different points of the transaction and allow a tax collection where a higher tax rate would be applicable in a state property is moved to. These rules are intended to apply to all leases of tangible personal property, including, but not limited to, automobiles as well as other types of mobile tangible personal property. Proposed Rule 1 RULE WHERE LESSEE HAS PAID SALES OR USE TAX UP FRONT ON LEASE VALUE "Where sales or use tax is paid in full on the total rental due under a transaction that leases mobile tangible personal property and the taxpayer subsequently moves the leased property to another State, the state with the subsequent taxing jurisdiction shall allow a credit, not to exceed the amount imposed by the subsequent taxing jurisdiction, against any sales or use tax liability up to the amount of the sales or use tax previously paid to the State with the first taxing jurisdiction, regardless of whether the first tax imposed a vendee (retail) sales tax or a vendor sales tax". Proposed Rule 2 RULE WHERE LESSOR HAS PAID SALES/USE TAX ON PURCHASE AND PASSED THE COST THROUGH TO THE LESSOR LUMP SUM OR AS PART OF THE LEASE PAYMENT. "Where a lessor has paid sales tax on the purchase of tangible personal property intended for subsequent lease, and has billed the lessee for that tax or has included the tax paid in the lease price; credit, of the amount of tax paid by the lessor but not to exceed the tax imposed by the subsequent jurisdiction, will be available to the lessor or lessee for the sales or use tax due to a subsequent jurisdiction on the lease of such property. This provision shall not apply to intrastate lease transactions." Rule 3. DIFFERENT POINTS OF TAXATION BETWEEN TWO STATES. Where the tax application to leased property of two affected states differ between tax on periodic payments versus full tax at the origin of the transaction ( up front) the above credits shall be negotiated as follows: a. Where the second or subsequent state collects at an origin or up front point, credit shall be allowed for the sum of all the sales or use tax paid on monthly or cap cost reduction payments, regardless of rate, against the sales or use tax which the subsequent state would impose based on the original transaction values. b. Where the subsequent state collects taxes when periodic payments are made and the original (first) state collected sales or use tax on the full lease value up front, the second, subsequent state shall only be entitled to sales or use tax to the extent that the rate imposed by the subsequent state exceeds the rate imposed by the origin state. The portion of the rate in excess of the first states rate shall be applied monthly to the lease payments made after the property is moved into the subsequent state. Please answer the following only if you have voted NO to Proposed Rule 2: Is your objection based on the belief that there is no double taxation involved? Yes ________ No_____ If no, is your objection based on the difficulty in administering this rule? Yes No If no, do you propose alternative language? Yes No If yes, what language do you propose?
Dennis Brown ;DBROWN@ELAMAIL.COM --------------------------------------------------------------------------------------------- Friday Odds and Ends Tom Jones Syndrome ( The original remark was from the wit: Tom Jones makes Ricky Martin look gay. Several asked to be removed, including this person. editor ) Hey, you can't please everyone, but "what's new pussycat?" Actually, the joke was fine! I just decided to get the Leasing News from your Web site instead, and unsubscribe to cut down on my incoming emails.
Regards,
Troy ~~~ Tom Jones is a virile, hairy chested man with a baritone voice. Ricky Martin is a boy. Please withhold my name. ~~~ Hey, Kit, this Tom Jones/Ricky Martin thing reminds me of the first time I really started to feel old. I overheard someone say that his favorite Beatle's song is "Hey Dude." Barry baldguy@frontiernet.net ~~~~ DO NOT BE MORE SENSITIVE! I LIKE YOUR JOKES. Bob Bell ~~~ I asked my wife to ask her hair dresser if Ricky Martin was gay. And she said he was. Why is the joke so funny? I don’t get it. Stu ~~~ Well, I happen to be gay and thought the joke was pretty funny. Don't let an over-sensitive reader discourage your humor. I also meant to comment Monday after your 'sermon'...man, sales managers across the nation were wishing they had something as nice and positive to say. Well put. ( name with held ) ~~~ ~~~ Thanks for the inspiration Kit. It is very timely. Ginny Young ~~~~ Jim Buckles --Preferred Broker Solutions American Leasing up-graded |