Kit Menkin's Leasing News

                   Www.leasingnews.org   Friday, August 2, 2002

  Accurate, fair and unbiased news for the equipment Leasing Industry

( posted daily at www.leasingnews.org and sent by e-mail by subscription

     with the Day in American History signature .)

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HP Launches Cash Back Lease Promotion

HP announced a new promotion that offers customers two percent rebates for leased purchases between $499 and $50,000. The lease-rebate program will run from Aug. 1 to Oct. 31, 2002, with rebates paid within 60 days of the product purchase.(1)

"HP is committed to ensuring customers have access to quality and affordable technology solutions," said Irv Rothman, president and chief executive officer, HP Financial Services. "Leasing is a smart way for customers to purchase the technology they need to be competitive while preserving capital to invest in other key areas of their businesses." The promotion is available to customers purchasing directly from HP or indirectly through solution providers or affiliate Web sites.

"This is a remarkable program that will enhance our ability to deliver HP solutions and quality services to customers," said Natalie Knudson, president, Modern Business Technology, Inc., an HP solution provider based in Madison, Wis. "Leasing is an attractive purchasing alternative because it requires less capital outlay which is important to growing businesses."

Knudson will be among the first resellers to leverage HP's new leasing promotion. Per a joint announcement with HP, her company is showcasing Virtual Receptionist -- a remote greeting solution -- to more than 1,000 small business owners attending the National Black Chamber of Commerce annual conference in Milwaukee, Aug. 1-3.

 

Leasing also provides access to affordable disaster-recovery services. According to a report by the University of Texas Center for Research on Information Systems, "Nearly half the companies that lose their data through disaster never re-open, and 90 percent are out of business within two years."

"Fewer than half the 7.1 million U.S. small- and mid-sized businesses with PCs have formal backup procedures," said Raymond Boggs, vice president, small business and home office research, at market research firm IDC. "Regular backup is like regular dentist visits. People know they should take preventive steps, but many wait until there's a problem."

HP Financial Services offer customers Advantage Protection Plus, a repair and replacement program that helps customers keep their businesses up and running in the event that leased information technology is damaged, destroyed, stolen or lost. Advantage Protection Plus is one of the most comprehensive programs in the IT equipment leasing industry that helps companies safeguard their IT investments and ensures quick access to critical data in the event of a negative incident.

Customers obtain Advantage Protection Plus by simply indicating they choose Advantage Protection Plus during the lease process and paying a low monthly fee of 0.2 percent of the total equipment cost. Advantage Protection Plus covers all hardware including non-HP equipment for immediate repair or replacement.

"Small- and medium-sized enterprises have the same needs as multinational corporations when it comes to business continuity measures and disaster planning," said Rothman. "Advantage Protection Plus provides them with a cost-effective solution for protecting their assets and for providing them with access to the data they need to run their businesses."

More information about HP Financial Services is available at http://www.compaq.com/financialservices/homepage.html. More information about HP's business continuity services is available at http://www.hp.com/hps/. More information about HP is available at http://www.hp.com.

 

(1) Lease products available through Hewlett-Packard Financial Services Company (HPFSC) to qualified commercial customers in the U.S. and are subject to credit approval and execution of standard HPFSC documentation. HPFSC reserves the right to change or cancel this program at any time without notice. 2 percent cash rebate lease offer -- HPFSC will send customer a check for 2 percent of the total lease transaction amount within 60 days after HPFSC has received the first lease payment from customer. Two percent lease offer applies to all lease transactions up to $50,000. Some product restrictions may apply. Other fees and restrictions may apply. This offer is valid through Oct. 31, 2002.

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( Yes, it is also true, ask any superbroker. Compaq Leasing is buying almost anything, no personal guarantee required, too. Their orders: put business on the books. Editor )

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Computer Tips

 

Windows 2000 Service Pack 3 is out.  Don’t be fooled by the one

minute download.  This is a minimum 45 minute project, even

on cable or T1.

 

Instant Messenger eat up broadband width. They constantly check

for messages.  If you are employer, be aware that you have administrative

rights to ban them.  Just for bandwidth purposes, be aware of this.

As for disruption during the day, it is like a telephone ringing and

you pick it up, no matter what you are doing. Worse, it could be

just chat.

   Ban instant messengers on your computer.

 

 If you are a single workstation, be aware of the disruptive behavior and

draw it does on your system.

 

RealAudio---close it down.  Even when you think it is off, it is not.

It also constantly checks the internet. It draws down bandwidth. It

can cause problems.  If you see the icon on, close it down.  The program

is running in the background and will affect your computer performance.

 

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Mortgage Rates Edge Up

By THE ASSOCIATED PRESS

 

WASHINGTON, — Mortgage rates moved higher this week, according to a nationwide survey released today, after rates on 30-year mortgages dipped last week to the lowest level in 31 years of record keeping.

 

Freddie Mac, the mortgage company, reported that the average interest rate on a 30-year fixed-rate mortgage climbed to 6.43 percent this week, up from 6.34 percent the previous week.

 

Last week's rate marked the lowest level on 30-year mortgages since Freddie Mac began its nationwide survey in 1971. The previous low was 6.45 percent, last November.

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Former MCA president pleads guilty to fraud

 

By Katie Merx  Crains Detroit.com

 

 

Lee Wells, former president and COO of MCA Financial Corp., pleaded guilty to two counts of federal fraud  in U.S. District Court in Detroit.

 

Wells, 42, is one of six MCA officers and directors facing federal and state securities-fraud charges. He pleaded guilty to two of 20 charges in a plea deal with the U.S. attorney’s office.

 

Wells pleaded guilty to charges alleging that from as early as 1993 until the state seized MCA in January 1999, the company engaged in a scheme to defraud its investors and institutional lenders. In his plea, he said MCA misrepresented its financial condition through fraudulent financial statements regularly filed with the U.S. Securities and Exchange Commission, banks, brokers, investors and institutional lenders.

 

The charges he pleaded to also say MCA fraudulently sold securities in pooled mortgages and land contracts, misrepresented their worth to current and prospective investors and inflated their recorded worth through a series of transfers between MCA and related entities.

 

Wells admitted in court that he conspired with other members of the financial-management committee and MCA officers to misrepresent MCA’s financial condition and operate the now-defunct Southfield mortgage company in a fraudulent manner. He also said he helped implement the scheme and knowingly signed false MCA financial statements.

 

Wells awaits sentencing. His plea agreement requires that he cooperate in the government’s investigation of other MCA executives.

 

Under the plea agreement, Wells faces up to nine years and one month of imprisonment and $500,000 in fines. He also could be forced to pay full restitution, which could exceed $200 million, to victimized investors and lenders.

 

Equipment Leasing Foundation Funding Raising Campaign

 

The Foundation's annual Fund Raising Campaign is underway and getting closer

to its goal of $220,000. But we still need your financial support to get us

there. Join other companies and individuals in supporting the Foundation

such as our most recent donors:

 

Caterpillar Financial Services - Corporate Sustainer

Orix Financial Services, Sustainer and Founder

Individual Benefactor, D. Paul Nibarger

 

Donations to the Foundation are tax deductible and funds support the

Foundation's mission to provide industry research and industry knowledge

enhancing products. For more information on the Foundation visit the website

http://www.leasefoundation.org. To make a contribution, contact Lisa Levine,

Executive Director at 703-527-8655 or llevine@elamail.com.

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Equipment Leasing Association Lease Accountants Conference Scheduled for September 9-11 . . .

make  Hotel Reservations NOW!

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ELA anticipates record attendance at this year's Lease Accountants

Conference, scheduled for September 9-11, 2002 at the Mayflower Hotel in

Washington, DC. The latest information on off-balance sheet accounting,

consolidating SPEs, synthetic leases, and guarantor accounting and

disclosure, will be presented at this essential meeting.  To ensure that you

have a reservation, please contact the hotel directly at (202) 347-3000,

before the cut-off date of Friday, August 9th, 2002. After this date, you

may be subject to pay for the same room at a higher rate.

 

For complete details and to register click below:

http://www.elaonline.com/events/2002/leaseaccts/

 

Car Sales in Surprise Jump, and G.M. Leads the Pack

 

By MICHELLE KREBS  New York Times

 

 

 

ETROIT,  — Car and truck sales in the United States rose a surprising 8.6 percent in July, largely because of aggressive incentives from automakers.

 

 

The General Motors Corporation reinstated zero-percent financing early last month, a reprise of the incentives it offered after the Sept. 11 attacks. As a result, its combined car and truck sales led the industry, rising by 23.9 percent in July compared with figures for the month a year earlier.

 

 

Most of the increase came on the strength of truck sales, which posted a 36.7 percent increase. Preliminary figures indicated that higher sales pushed G.M.'s share of the United States car and truck market to 30 percent, a level it had not reached since February, said Paul Ballew, the chief industry sales analyst at G.M.

 

 

"In the midst of a seemingly endless stream of negative economic and industry stories, the auto industry had positive results," Mr. Ballew said. "And there's no way to describe G.M.'s performance in July other than to say it was terrific."

 

 

He noted that two-thirds of G.M. buyers in July opted for no- or low-interest financing, a percentage that is higher than usual; most traded in vehicles made by other companies. The strong sales depleted inventories more than expected, prompting G.M. to increase production for the third quarter.

 

 

Other automakers followed G.M.'s lead on incentives by offering interest-free or low-interest financing in addition to cash rebates. But G.M. benefited most.

 

 

The Ford Motor Company said its car and truck sales rose 1.5 percent, its first year-over-year increase for 2002. In addition to financing incentives, Ford is offering rebates that are as high as $7,000 on the Lincoln Continental. Not counting sales from its Volvo, Jaguar and Land Rover import brands, however, Ford's sales were up a scant 0.7 percent.

 

 

Combined car and truck sales for the Chrysler Group, which offered zero- interest loans and a seven-year or 70,000-mile power-train warranty in early July, fell 4 percent.

 

 

Sales for the entire industry, which had lagged in recent months, were stronger than analysts and auto company executives had predicted. The increase translated into an annual selling rate of 18.1 million vehicles, according to Ward's AutoInfoBank. Automakers sold 17.2 million vehicles in all of 2001.

 

 

"Economists are all doom and gloom, but American consumers are ignoring them and living their lives," said Ron Pinelli, an analyst at Autodata Inc. in Woodcliff Lake, N.J.. "They see a good deal on a car and they respond. Consumers went where the deals were."

 

 

Indeed, sales at Mitsubishi, on the strength of heavy incentives, soared 46.3 percent, its best single sales month ever. Toyota Motor, which is offering incentives of up to $1,300 a vehicle, had a sales increase of 4.6 percent for its best-ever July. Sales at its Lexus luxury division rose 4.5 percent. Honda said its sales rose 7.9 percent, and sales by its Acura division increased 1.6 percent. The rest of the imports had mixed results: BMW, Porsche, Hyundai, Kia and Suzuki had higher sales; Mercedes-Benz, which is awaiting the introduction of several vehicles, Volkswagen and its Audi division and Isuzu had lower sales. Subaru held steady.

 

The current round of no-interest financing and other incentives are scheduled to expire in late August and early September, but auto executives said they expected strong incentives to continue into the near future. Indeed, Mr. Ballew said G.M., which has led the incentive charge over the last year, would remain aggressive in the marketplace.

 

 

The incentives are making it possible for households to add more cars and trucks, leading to the higher-than-expected sales, said Gary Dilts, senior vice president for sales at the Chrysler Group. "The affordability index is the best it's been in 25 years," he said.

 

 

Still, automakers acknowledge that they may be poaching sales from the future and warn that shaky consumer confidence and the roller-coaster stock market could hurt sales. Nonetheless, they predict that the industry will sell 16.5 million to 17 million vehicles in 2002 and about the same in 2003.

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Plenty of room at the inn in S.F.

 

Industry's suffering nationwide, but nowhere more than Bay Area

 

Dan Levy, San Francisco Chronicle Staff Writer

 

San Francisco -- San Francisco-area hotels were hit

harder than any in the nation this year as the tech crash, corporate travel cuts and post-Sept. 11 travel jitters took their toll on the city's hospitality industry.

 

The local hotel occupancy rate hit a troubling 59 percent, falling by 10 percentage points during the first six months of the year. It was the worst decline of any large city in the country, according to an industry study.

 

The occupancy-rate study by Smith Travel Research included hotels in San Francisco, San Mateo and the area around San Francisco International Airport. For the first five months of the year, the survey found that San Francisco's rate had plunged even lower -- to 57 percent.

 

"Everything is going the wrong way this year," said Rick Swig of RSBA & Associates, a San Francisco hospitality consulting firm. "Corporate travel is arguably down by 50 percent, it wasn't a good year for convention bookings, there are fewer flights out of SFO and international travel is down 40 percent. "

 

It was only two years ago that the city's hotels were packed with business people and tourists during the height of the dot-com era. In 2000, San Francisco hotel occupancy rates hit a record high of 81 percent, a significant increase over a typical year's rate of 70 to 75 percent.

 

But then the Nasdaq crashed, tech executives and investment bankers stopped traveling and the city's dot-com startups shed thousands of jobs or went bankrupt. Business has yet to pick up.

 

"The bottom line is that business travel is nonexistent," said John Marks, president of the San Francisco Convention and Visitors Bureau. "And with something close to a 30 percent office vacancy rate, fewer people are working and having visitors to the city."

 

Marks cautioned that the Smith Travel numbers give a misleading overall picture because they include hotels around SFO, which have especially suffered from cuts in airline schedules.

 

Even so, Marks said the occupancy rate for the roughly 30,000 hotel rooms in the central city is only slightly more than 60 percent.

 

'NOT EXACTLY STELLAR'

 

"It's not exactly stellar, but it's not as low as Smith Travel says," Marks said.

 

Adding to the hotel woes is a declining room rate.

 

After Sept. 11, many hotels anticipated a slow year and offered steep discounts and promotions they would have otherwise avoided. Consequently, San Francisco's average room rate so far this year is $128, down 16 percent from last year's $153, Smith Travel said.

 

"We're being pretty aggressive on pricing as we continue to roll out," said Mike Casey, general manager of the 362-room Omni in the Financial District, one of three hotels to open in the city in the past year. "You can get a room here for as low as $139."

 

The 1,500-room Marriott hotel, which sits next to the Moscone Center and depends hugely on convention business, is offering a special $169 rate for the summer.

 

A ROBUST JULY AT THE WHARF

 

At the 837-room Holiday Inn at Fisherman's Wharf, the occupancy rate was a robust 85 percent for the traditionally strong month of July, General Manager Craig Schwan said.

 

But the hotel is still planning to offer a $99 promotion after Labor Day -- and is hoping to end the year with an overall occupancy rate of just more than 70 percent, Schwan said.

 

"We're not doing that poorly, but we've slowed down from last year," Schwan said. "Most of that is a reaction to 9/11 and slower air traffic. We depend on airline travelers who make their air and hotel reservations at the same time."

 

Luxury spots such as the Mandarin Oriental downtown seem to be faring even worse. Industry experts say the market for five-star hotels has taken it on the chin.

 

HOTEL-TAX REVENUE LOST

 

"Those numbers are pretty indicative of what we're experiencing," said Alain Negueloua, the Mandarin's general manager, when told of the Smith Travel report. "A lot of the investment banking people stay here, and the funding of the tech companies has definitely been reduced."

 

For San Francisco city officials, who depend on a 14 percent hotel room tax to help fund everything from arts and culture to street cleaning and police patrols, there is cause for concern.

 

Last year, the city took in $140.5 million in hotel-tax money -- its lowest in six years.

 

 

Staff writer Rachel Gordon contributed to this report. /

E-mail Dan Levy at danlevy@sfchronicle.com.

 

 

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SOLARCOM SELECTS KEY EQUIPMENT FINANCE AS WHOLESALE FINANCE PARTNER

 

SUPERIOR, Colo., ­ ­ Recognizing the value customers gain from

leasing technological solutions, Solarcom LLC, an end-to-end business and

technology solutions and consulting provider, has selected Key Equipment

Finance, the nation¹s sixth largest bank affiliated equipment lessor, as one

of its wholesale financing partners.

 

"Solarcom has long believed that lease financing is an essential component

to a total solution," said Robert Necessary, senior vice president of

Solarcom¹s Financial Solutions Group. "It is our goal to help customers

address project uncertainties and funding requirements by structuring a

financing solution that phases in, step-by-step, with project

implementation. Working with Key Equipment Finance gives us even greater

flexibility in helping our customers match expenses to the benefits gained."

 

With support from financing partners such as Key Equipment Finance,

Solarcom¹s customers can lease hardware, software, professional services,

support, and maintenance.

 

"Studies conducted by the Equipment Leasing Association show that eight out

of ten companies lease equipment and 67 percent of growing businesses lease

equipment specifically to control monthly costs and cash flow, with

information technology equipment being among the most popular items to

lease," said Paul Larkins. "By providing lease options directly to

customers, Solarcom is demonstrating its commitment to being a complete

solution provider."

 

About Solarcom

Established in 1976, Solarcom is a leading end-to-end business and

technology solutions and consulting provider. Headquartered in the Greater

Atlanta Area, the company operates 25 offices across the U.S. Solarcom has

worked with over 8,000 satisfied customers.

 

About Key Equipment Finance

Key Equipment Finance provides business-to-business equipment financing

solutions to: small businesses in the U.S.; mid-to-large size businesses in

the U.S. and Canada; the customers of equipment manufacturers, distributors

and value-added resellers worldwide; and federal, state and local

municipalities as well as other public sector organizations. Headquartered

near Boulder, Colo., Key Equipment Finance has been in the equipment finance

business for nearly 30 years and has a presence in 25 countries, with major

operations in Albany, London, Toronto, and Sydney. The company employs more

than 600 people worldwide and manages an $8 billion equipment portfolio with

annual originations of nearly $3 billion. Additional information is

available at KEFonline.com.

 

About KeyCorp

Cleveland-based KeyCorp (NYSE: KEY) is one of the nation's largest

bank-based financial services companies, with assets of approximately $81

billion. Key companies provide investment management, retail and commercial

banking, retirement, consumer finance, and investment banking products and

services to individuals and companies throughout the United States and, for

certain businesses, internationally. The company's businesses deliver their

products and services through KeyCenters and offices; a network of

approximately 2,400 ATMs; telephone banking centers (1.800.KEY2YOU); and a

Web site, Key.com, that provides account access and financial products 24

hours a day.

 

 

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To Keep Good Credit—For you, your kids, and customers

 

TOP PRIORITIES:

 

Pay all bills on time, especially mortgage payment but including credit card bills, utilities, phone bills and even hospitals. Rent generally does not count in a credit rating.

 

Reduce amount of debt, especially as compared to total available credit limit from all sources. Don't max out credit cards.

 

Don't add to debt load; obtain new credit only when absolutely necessary.

 

OTHER TIPS:

 

Build a long credit history; a limited credit history can have a negative impact, even if the vast majority of the information is good.

 

Don't make several new credit applications in a short period of time. The score factors in the number of recent credit requests. This does not include regular monitoring by creditors or requests by creditors wanting to make ''prescreened'' offers.

 

Reduce number of credit accounts. Though it is good to have established credit accounts with good payment history, too many accounts reflects negatively.

Look at type of credit. Under some models, loans from finance companies can have a negative impact. But a mix of debt that goes beyond credit cards to include an auto or previous home loans can help.

 

Examine credit report for errors such as accounts marked as open that have been paid off and closed or false late-payment listings and have them corrected.

Sources: Federal Trade Commission and Consumer Reports

 

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Krispy Kreme comes to Connecticut

 

By Kathryn Masterson, Associated Press

 

NEWINGTON, Conn. (AP) With a siren-wailing police escort, a truck full of doughnuts made its way to a Krispy Kreme construction site Thursday and loudly declared the arrival of a new competitor in Dunkin' Donuts territory.

 

The North Carolina-based Krispy Kreme is getting ready to open its first store in New England, an area that already holds almost 1,500 Dunkin' Donuts stores, 300 of which are in Connecticut.

 

The company held a groundbreaking ceremony at its Berlin Turnpike site Thursday, though ground has already been dug up and the frame of the store put in place. Dozens of people stood in the hot sun to listen to politicians praise the company and its signature glazed doughnuts.

 

Krispy Kreme usually creates a stir when it opens in new areas, and by the time a store turns on its ''Hot Doughnuts Now'' sign for the first time, people are lined up at the door.

 

''To be the first town to have a Krispy Kreme is so important,'' Newington Mayor Thomas McBride said.

 

The scripted agenda for Thursday's groundbreaking, which included a raffle and a performance by the Newington High School cheerleaders, was broken up by the arrival of the doughnuts in an armored car.

 

People rushed the truck to grab boxes of doughnuts, and the cheerleaders performed a dance number in the dusty lot with few people watching.

 

Christi Tilton and her husband, Jeff, heard about the event on the radio and decided to come over with Liam, their 1 1/2-year-old son. The couple, who live in nearby Wethersfield, say they're excited the store will be opening in early October.

 

''We're eagerly counting the days,'' Christi said.

 

A Rhode Island company is developing Krispy Kreme's New England stores. The next ones are slated for Cranston, R.I., Medford, Mass., and Milford, Conn. Nick Janikies, the head of The Jan Companies, said the company wants to build 100 stores in the region.

 

Both Krispy Kreme and Randolph, Mass.-based Dunkin' Donuts say they don't expect the presence of the other to cut into their business. Dunkin' Donuts said its focus is on its coffee and baked goods to accompany it, while Krispy Kreme says 90 percent of its business is selling doughnuts.

 

Neither company thinks the New England market is saturated with the breakfast treats.

 

''Is there room for more doughnuts in anybody's stomach? I guess the answer is yes,'' said Ken Kimmel, Dunkin' Donuts vice president of concepts.

 

 

About Our Goals at Leasing News

 

Looks like a good source for leasing sales people. Perhaps you could shed some light on where your publication is distributed so that we know who will potentially see our classified ads. 

 

Thanks again,

 

Tom Gerner

TGerner@IFCCREDIT.COM

VP Human Resources

IFC Credit

 

 

 (  to inform, to educate, to entertain, to help )

 

Do it better, don’t run away just because they do it )

 

We estimated we have 5,000 readers.  Many read us “at home”,

some are doubled listed and may also read us at work.  I would say there

is an “age” factor. We know this from the ISP address. The older the person and the higher up in the scale of a leasing company, the less they are interested in the internet, e-mail, or “inside news.”  This does not apply to entrepreneurs or smaller companies

who compete with the larger companies.  Many of them are quite computer

and internet “ready.”

 

We have a real cross section from brokers,  collectors, managers of departments, salesmen,csales managers, sales representatives, and even attorneys.  Our first classified ad was for an attorney by the way, who got a leasing company job through Leasing News.  We have had operations people, collectors, and other people involved in the industry find job , therefore they must be readers. I think they all care about their professional, want to succeed in life, are concerned about others, want to know more about what is going on, and have a very curious mind.

 

We don’t just automatically print any press release sent to us and particularly . We print a lot of controversy and things you will not read anywhere else about the leasing industry.  We are not driven by advertisers or charge for our services.

 

You won’t see a full press release  that Boeing leased five new aircraft. ( sorry ).

Most of the press releases are so phony, they could be comedy.  They are quite

one sided, at best.

 

One of the things I learned in starting this, most readers want it delivered to their

e-mail address. I originally thought they would like the html, cleaner layout,

that they could print or adjust to a newspaper format or click to the url

mentioned. They like it delivered.  Thus the reason I plug the classified

in the e-mail news edition.  By the way, we never intended to have a classified

section, it was requested by the readers. It took several months of the requests

for us to act as it is a lot of work to maintain.

 

 

 

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

 

Correction: Gerry Egan is not a CLP (Certified Leasing Professional ).

My error. I apologize.

 

Gerry specifically requested that I let readers know

 

 

“You have listed me in today's publication as a CLP.  I am not a CLP

and have never presented myself to you or to anyone else as a CLP.

 

“As if you haven't done enough to get people to criticize me, now they'll be

jumping on me for masquerading as a CLP.

 

“If you are as truly fair as you like to claim to be, you will print a

prominent and clear statement that it was your error and that I in no way

have ever tried to present myself as a CLP.

 

“Please do it right away.”

 

Gerry is correct, it is my “typo.”  I did not use the title in the body of the

story, but when connecting it to the “plug” for the San Diego Conference

of the United Association of Equipment Leasing, I added the title in error.

 

---

 

  P.S. All four "sales trainers"  will be appearing as speakers at the

 San Diego United Association of Equipment Leasing Conference

     Bob Baker,CLP

     Gerry Egan, CLP  ( not correct )

     Jeffrey Taylor ( who will be taking

       his CLP exam at the conference )

      Bob Teichman, CLP

 

In addition, there will be many workshops, two being moderated by

  Leasing News----Top Gun Salesmen ( to qualify from this

   panel your W2 had to show more than $250,000 in income )

         Top Gun Sales Manager   ( learn what they look for

           and how they hold on to Top Gun Salesmen ).

   

  also:

 

  LAST CHANCE FOR ACE EARLY BIRD!

 

 

TOP GUN  - ANNUAL FALL CONFERENCE & EXPOSITION

 United Association of Equipment Leasing

October 3-6, 2002

Sheraton Hotel & Marina - San Diego

1380 Harbor Island Drive

San Diego, CA 92101

Tel: 619-692-2200

Fax: 619-692-2363

www.sheraton.com/sandiegomarina

 

 

LAST CHANCE FOR EARLY BIRD REGISTRATION!

REGISTER ONLINE WWW.UAEL.ORG  OR

CALL US 510-444-9235

 

BOOK YOUR STAY NOW - CALL 877-734-2726

Don't forget to mention UAEL group rate - Room Block Is Limited!!!

 

Spouse Program Available - First Time Spouse Desk on Site!

 

Register for the Golf Tournament at Steele Canyon Golf and Country Club (27

hole Championship Course)

 

See you in Sunny San Diego!

 

Azin

azin@uael.org

 

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What do you mean we, white man?   Final Episode?

 

from Monday’s Odds and Ends  ( not even at the top ,but buried

among many “loose ends”:_

 

“Gerry Egan, president of the National Association of Equipment Leasing

Brokers, is coming under criticism for using his title in a promotion of

Pawnee Leasing Training at their website.

 

  “You be the judge:

 

“ http://www.pawneeleasing.com/”

 

Leasing News moved its wagons in a circle as we started getting it from

the directors of NAELB and brokers that Pawnee Leasing sent email. ( Their

response to me had Pawnee Leasing as one of the cc: to the e:mail )  I felt like the Lone Ranger.  I stated so yesterday, and even headlined the story.  Perhaps everyone knows the joke:

 

The Lone Ranger and Tonto were surrounded: Indians to the right of them.

Indians to the left of them. Indians in front of them. Indians behind them.

Arrows and bullets, on horses, on foot, and the Lone Ranger and Tonto were

about to run out of ammunition, when the masked man turns to his

companion Tonto and says, “ Well, Kemosabe, what are we going to

do now? “

 Tonto turns to him, and replies, “ What do you mean, we, white man? “

 

---

 

from Gerry Egan:

 

Kit, you said in Leasing News this morning that you print all viewpoints,

whether you agree with them or not and whether they're critical of you or

not.  That's good.  Below is mine, which I ask you to print in it's

entirety.  I've devoted barely half the words to explaining myself as you've

devoted to trying to create a controversy surrounding me.  In the interest

of accuracy, I've also copied in the members of the National Association

of Equipment Leasing Brokers Board of Directors since you dragged them into this and I want them to see my whole response.

 

Thanks, Kit.

 

( whoa, I didn’t drag anyone into this. I asked readers to judge for themselves. )

 

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

 

e-Mail sent for publication in Leasing News by Gerry Egan

 

Kit, I’m told by friends that I should respond to your non-controversy about

my recording sales tips for use on Pawnee Leasing’s web site.  Frankly, I’m

a little at a loss as to how to do so since I wasn’t aware there was a

controversy.  I’ll try though.

 

First, I’d like your readers to understand that neither the parties

involved, (that’s Pawnee Leasing and me), nor the National Association of

Equipment Leasing Brokers, (NAELB), have received any complaints or

criticisms of any kind —not even one— about my working with Pawnee on this

project in the several weeks that the project has been up and running

online.  Unless and until some party involved is hurt or damaged in some

way, it’s hard to see how it’s much of a controversy.  In fact, Kit, until

you specifically solicited criticism there was none.  Like the controversies

that sold so many papers for Hearst and Pulitzer in those earlier hey-days

of yellow journalism, this one has been completely manufactured by the

‘press’ that’s reporting it.  Before you published this non-news, no one,

including you, ever called me to talk about the so-called ‘issue’, no one

called the NAELB to see if they felt it was a conflict in any way, no one

called Pawnee Leasing to find out how the project came about, and no one

tried in any other way to accurately report on it.

 

Nevertheless, you have chosen to ‘report’ it and published some criticism of

it and of me, and have tried to raise questions about my ethics and

character, and in the interests of fairness for my good friends at Pawnee

Leasing and my many friends in the NAELB, I respond.  I’m first going to

clear up some general questions and then answer the specific criticisms you

have published.

 

I’d also like you to make clear to your readers that listing me as a CLP was

your error.  I’m not a CLP and have never represented myself to you or to

anyone else as being one.  It was an editorial error on your part, Kit.

 

Is this an NAELB project, or is NAELB being used to promote it?

No.  This was not an NAELB project in any way and is not and has not been

presented as such by anyone involved in it in any way.  Neither Pawnee

Leasing nor myself has tried in any way to use the NAELB or my position as

its current president to promote the project that way.  Anyone who views the

Pawnee web pages and says Pawnee or I are using my position with the NAELB

to promote the project is imagining in the extreme, and surely has no real

grasp of how to promote anything.  It’s a five second mention at the end of

my bio.  If I was trying to do so, I can promise you I’m a better marketer

and promoter than that.

 

I am, in fact, the current President of NAELB.  It is customary in projects

of this nature to provide a biography of the presenter and you’ll note that

is exactly how my personal information is offered; in a section called Meet

the Presenter.  I ask your readers simply this: how many of them do not

include their current industry positions and qualifications on their resume?

I am widely known to be the President of the NAELB and not including it

would have been disingenuous.

 

How did this project come about?

Anyone who knows me well knows that I have done consulting, training,

writing, workshops and marketing projects for companies in a number of

industries since the late nineteen-seventies.  In fact, some of my most

successful programs in this industry were sold through ads in what was then

the WAEL’s magazine.  A core part of my belief, as described in the founding

and guiding principles I wrote down when I started my own business over

eleven years ago,  http://www.forequipmentleasing.com/html/founding_principles.html), is that

knowledge is only valuable if leveraged by passing it on.  I take every

opportunity to do so, both as a volunteer and as a paid consultant.

 

Gary Souverein and I have worked on various ideas and versions of this

particular project for several years, (starting well prior to my involvement

on the Board of Directors of NAELB), looking for a method we both thought

could be effective.  When I was first elected to the Board of NAELB and

again when I was elected by the general membership as it’s President a few

months ago, I told the Board that I was working on projects with Pawnee,

(and with other well known firms).  The Board saw no conflict and said so.

Those that wonder how the NAELB felt about it should have asked me or any

Board Member before they went running to you and caused us all to waste so

much time.

 

Am I endorsing Pawnee Leasing; and should I be, if I am?

Yes and yes.  I support and endorse all active NAELB funder members and

encourage NAELB Members and non-members alike to do business with them.  Am

I in any way doing anything with or for Pawnee Leasing that I wouldn’t do

for another company?  No.  I’m currently developing marketing projects for

some other firms, too.

 

Specifically, about the comments you published this morning.  Two of them

are unsigned.  I have neither the time nor inclination to worry about anyone

who lacks either the common courtesy or courage of their convictions to

publicly criticize me or anyone else and not sign their name.  Whether that’

s your decision, Kit, (why, I wonder?), or theirs doesn’t matter.  However,

if your writer thinks Pawnee’s efforts to help improve the skill level of

their brokers and others undermines the educational efforts of NAELB,  he or

she seriously misunderstand the goals of our association.  The other three

comments you solicited are all from professional trainers in our industry,

potential competitors for a project like this, by the way.  Do you think

most of your readers would want, (or take seriously), alleged controversies

involving themselves which were ‘uncovered’ primarily through solicited

comments from their competition publicized before they were ever even asked

about them?  That's what you've done here.

 

Frankly, I don’t understand Bob Baker’s comments, at all.  What, exactly, is

it he thinks I’ve done wrong?  Bob, when you were acting as Director of

Education for NAELB, you had private training classes and clients, spoke at

and were compensated for doing so at  NAELB and non-NAELB meetings and even

did a large, paid project for NAELB.  How is what I’ve done with Pawnee any

different than that?  Why would you criticize me for doing something

essentially similar to what you’ve done for years?  To say that I shouldn’t

work with Pawnee because it’s not association business and therefore

presents a conflict of interest is ridiculous.  Following  that reasoning,

no NAELB Board Member should ever do business with any NAELB funder.  Sorry,

Bob.  That’s not what NAELB is all about at all.

 

My friend Bob Teichman makes the point that general industry training at

industry conferences is a practical way to get broad based, non-company

specific, training.  Anyone who knows me at all knows I agree completely

with that.  For years I’ve freely donated my time to prepare and present at

NAELB meetings and will be doing the same at the upcoming UAEL meeting in

October.  The training material I worked on for Pawnee, though it may have

good general application, too, is clearly geared towards helping the brokers

who are working or want to work with them.  That’s Pawnee’s business.  Of

course that’s what they want.  Who’s surprised by that?  How is that

controversial?  Pawnee also understands that, however desirable those

conferences are, many small brokers are unable to afford to take their whole

staff to those conferences and Pawnee was trying to help them.  Who could be

against that?  Kit, why you would try to lump Bob’s comments into your

supposed controversy surrounding me?

 

Now, for Jeff Taylor to see the whole thing as me trying to sell myself is

ridiculous enough, but for him to find fault with that is absurd in the

extreme ---since all his publications do that for him continually!  And

Jeff, I’m sorry you don’t like my picture, I actually think you’re kind of

cute ---but I wasn’t interested in dating you!  Technologically, this was a

low budget project to provide simple, low-cost help to as many people as

possible.  It does that.  On that basis it’s successful.  No one ever held

it out as anything else.  Again, Kit, if Taylor’s only ‘contribution’ is to

run down the technical abilities of Pawnee’s web hosting company, how is

that construed by you as a criticism of me and included in your self-defined

controversy over my abusing my NAELB position?

 

Sorry, Kit.  You missed on this one.  Where’s the beef?  I know you’re

looking for a big story, Don Quixote, but this one’s just an ordinary

windmill.  There’s nothing there.  You were doing better, Scoop, when you

were reporting the news instead of trying to create it.

 

Oh, and to the rest of your readers, when I’m not too busy with my local

leasing business and my volunteer work for NAELB, I’m available for a wide

range of training and marketing projects!!

 

Gerry Egan

President

TecSource, Inc.

5621 Departure Drive, Suite 113

Raleigh, NC 27616

 

Phone: 919-790-1266

Fax: 919-790-2262

E-Mail: GerryEgan@ForEquipmentLeasing.com

Internet: www.ForEquipmentLeasing.com

 

----  

 

                                                          

  ---------------

 

 from Jeff Taylor ( responding to Gerry Egan’s comments---Jeff’s

comments are highlighted ).

 

    Now, for Jeff Taylor to see the whole thing as me trying to sell myself is

    ridiculous enough It is not ridiculous because I see exactly what he is doing - if he does not see it, he is too close to his client and/or the

    project, but for him to find fault I did not see fault - I saw poor quality with that is absurd in the

    extreme Teflon statement - can't argue with a person's perception  ---since all his publications do that for him continually! That is correct,

    but I own my newsletter and my websites and I can do whatever I want with my own intellectual property - Gerry used a client for personal

    gain or the client used Gerry for their corporate gain - in either case there was a moral conflict using NAELB's position And Jeff,

    sorry you don't like my picture Still don't like the picture - and it is my opinion I actually think you're kind of

    cute his response is inappropriate, feministic and childish - I can only assume that he said this because he had nothing else to say - I call

    that hitting below the belt and unprofessional ---but I wasn't interested in dating you Again, he uses inappropriate words - reminds me

    of the bully in the neighborhood who says let's go outside and settle this with our fists  Technologically, this was a low budget project two

    comments here - 1) yes it was low budget and it shows 2) why did they go low budget? Do they not think that education is worth making an

    investment? How can they attract quality when they show the material that they did to provide simple, low-cost help What they are saying

    is that they want the poorest, most struggling people to be attracted to them - makes sense if the company attracts hard lessees then they

    need to attract brokers who like dealing with those types of clients - I used to do that when I was young - now that I charge $4,000/day not

    $2,000/hour I elect not to associate myself with my past -  to as many people as possible.  It does that. Can't disagree with that. On that

    basis it's successful. I love the logic here. Reminds me of people who hit their dog and then say that the dog deserved it. Using this

    logic, anyone can justify anything that they do - where is the morality here?  No one ever held it out as anything else.  Again, Kit, if

    Taylor’s only contribution is to

    run down the technical abilities I do not have the power to run down the technical abilities of any company - I will repeat myself in that the

    technical design, delivery and approach that was used is probably the poorest I have ever seen in my 20 plus years as a system designer of

    Pawne's web hosting company, how is that construed by you as a criticism of me and included in your self-defined controversy over

    my abusing my NAELB position?

 

    .  Perhaps Mr. Taylor is right,

    maybe we did a shoddy job, it's too bad he didn't have the respect

    for Pawnee Leasing I would have more respect for a company that talks to multiple vendors before proceeding on a project. From my perspective this was a sole source with Gerry.

    Although I had no desire to bid on the project, what about the other 6 or 7 key sales trainers in the business? to give us his $2,000/hour advice $4,000/DAY like we ask for on the   opening page I looked at their site a second time and they do not ask for feedback on their opening page. They basically offer 4 different gift baskets and a picture of Gerry Egan   promoting sales training.  I promise it would have been well received...you might pass on a little wisdom I'm sure he knows about but needs reminding of... "criticize in private, praise  in public”. I do not remember my father telling me that lesson. It appears that Pawnee management says that private criticism is expected in order to minimize problems with the   public. I can only assume that Pawnee management must have been raised in the 50s, well before my time. If you want to take praise, you must also take criticism. That was the

 lesson I learned as a kid.

 

Also, he talks about how Pawnee is the first to do on-line training. He is wrong. ELA was first (3 years ago) and I was second (1 year ago). I love the way he makes up the information as he goes along. Maybe that is why they are so successful in sales.

 

I like Gerry and NAELB. I think they have a great organization. I still feel that Gerry stepped over, what I consider, a moral boundary between

his capacity as a senior NAELB official and his role in marketing his own company and a NAELB member.

 

The fact that he received money for this project further indicates that he either did not tell the board everything, that the board did not listen, that he controls the board, that he did what he wanted and that Pawnee used their power to achieve a marketing gain that other NAELB members did not receive.

 

I know that 5 years from now no one is going to care about this. I think you were courageous to go out on a limb and voice your opinion. It takes guts and that is what I do with my newsletter, websites and clients. That is also why I get $4,000/day. So next time you talk to Pawnee or Gerry please let them know that I will always give my open and honest opinion, even if people take shots at me.

 

I did not achieve my position of success within this industry by lying down and letting senior executives roll all over me.

 

On a separate note, I would not have bid this project because I cannot do cheap work.

 

Jeffrey Taylor

ExecutiveCaliber - Global Lease Training

2144 South 1150 East

Bountiful, UT 84010 USA

(801) 299-9332

(801) 299-9932 (fax)

Member of Profnet

ExecutiveCaliber@aol.com

 

----

 

from: Mike Meacher

 

Kit,

 

I normally don’t write to Leasing News or post much on the NAELB Bulletin Board.  However, I do feel qualified to provide comment on the recently contrived controversy about current NAELB President, Gerry Egan.  Your readers should understand I feel qualified to comment on this issue in that I am a past President of NAELB and have been a Board member for many years.

 

Let me see if I’ve got this right…….

 

Teapot Dome, Iran-Contra and now the president of a trade organization includes that information in his biography. Or perhaps the mythical controversy is that a member of a trade organization who is acting in a leadership position should accept no outside gigs.

 

You provide many hours of service to the leasing industry by compiling and distributing Leasing News and, as one member of the industry, I appreciate that effort.  However, you and your complaining contributors suffer from selective recall, incomplete information and perhaps competitive jealousy.

 

Let’s review a few facts:

 

1. The published complaints to date have been from several anonymous contributors (my personal favorite source for quality information) or from leasing educators who would compete with Mr. Egan for business like the audio training posted on the Pawnee website.  As an anonymous friend of mine from the south would say, “these guys all have a dog in the race”.  Their comments are far from neutral and are self-serving.

 

2. The most inconsistent comment of the lot is from Bob Baker.  During the time Bob believed he was acting as the “Director of Education” for NAELB, he has:

Accepted fee income from students to attend his classes

Accepted fee income from NAELB to produce a video tape series

Accepted expense reimbursement from NAELB to attend NAELB events

All of these occurred during his tenure as an Association leader and his biography has always included his involvement with Wildwood Financial.  His comments are at best disingenuous.

 

3. Mr. Taylor’s comments are centered on the technical aspects of the audio quality of the files or the number of pixels in the .jpeg picture of Egan.  He must be worried about a different  mythical controversy.

 

4. You consistently assert that you take a neutral position regarding industry subjects and simply provide a forum where both sides contribute without your editorial bias.  Your readers should be informed that there have been several emails sent to you in this matter which you have elected to not include.  Hardly neutral.

 

5. Gerry Egan is not at CLP, has never claimed to be a CLP and has written to you requested that you correct your error.  Was it an honest error or are you trying to get more controversy out of this non-story?

 

We all understand that controversy (real or imagined) stirs up interest and is probably good for the pass through circulation of Leasing News.  If you want to take shots at the creeps in the industry, do it with my blessing.  When you “toss one against the electronic wall to see if it sticks” and the subject is as lame as this one, you should publish an apology.

 

 If you can’t get the facts straight, or fail to publish all sides of the responses you get back, then you need to rename the publication with something that includes enquirer or star.

 

Got enough huevos to run this response unedited?

 

Mike Meacher

meacher@bankgrouponline.com

800-403-0422

 

(Kemosabe?)

 

---- 

from Joe Bonanno:

 

Like most of us, I've had a busy day and am reaching for the Tylenol. But as I catch up on the email traffic of the day, I feel that I wish to

contribute to your discussion about Gerry Egan. First and foremost, absolutely and in totality recognize that I am speaking for my own

personal opinion, not in any legal capacity or NAELB capacity whatsoever. So there's the disclaimer, now onto the substance.

 

 

 

I have to admit that I am very disturbed about what has been going on in (a) the leasing industry, (b) Leasing News and (c) this Gerry Egan

topic. I would like to address each of these separately.

 

 

 

First as to the industry. It's no secret that the industry has a tarnished image in today's world. Lessee's are sophisticated and are able to

recognize a 20% interest to a fair market value purchase option. Did participants in this industry think that this type of thing could last

forever? I hope not, because that tells me that industry participants are really out of touch with reality. Capitalizing on that were some rather

unscrupulous leasing companies, so called funders and what a good friend of mine has paraphrased as "predatory lenders." It was, of course,

only a matter of time until those players fell flat on their face, which they did, causing this industry to go into turmoil and giving the industry a

tarnished name and reputation. The industry shot itself in the foot.

 

 

 

Second, as to Leasing News. I believe and know that in your heart of hearts your goals are to do a good thing with the circulation of Leasing

News and I applaud you for taking on such a tremendous undertaking on your own time, at your own expense and at your own dedication.

However, I do have one big issue with Leasing News. I think that you may have lost sight of the forest for the trees. Leasing News obviously

circulates all over the world, to all types of business people and to many different types of industries. Your constant publication of industry

bad news, industry gossip and attempts at generating controversy (like the Gerry Egan situation), when exposed to people in different

industries contribute, compound and exacerbate the already tarnished image of the industry. In my opinion, you have to step back and

respect and acknowledge the power of internet circulation, which Leasing News has capitalized upon and ask yourself what type of image

Leasing News is portraying to those individuals and entities that are not part of the leasing industry. Certainly, it has not been a good one.

May I constructively suggest to you that Leasing News, not on a frequent basis but perhaps once a month or even once a quarter, begin to

publish stories of how leasing industry professionals have helped businesses grow, been able to provide financing to entities that cannot

obtain financing through traditional means and contribute the positive aspects of the industry, rather than consistently publicize negative

aspects. I suppose in the journalism field that is referred to as "human interest" stories. People like to read that type of thing, and as a

participant in the industry yourself, I would think that you want to focus upon the good that the industry has done for people.

 

 

 

Third, as to the Gerry Egan topic. I think that you will find most people in this industry respect Gerry both personally and professionally, and

many people also respect Bob Baker, Bob Teischman, Mike Greneri and other professional educators whose names I only forget because I am

tired at the end of the day. I too have tried to provide education to industry participants, not by a professional education, but by writing in

such publications as The Monitor, Leasing Logic, Lease Closer (Mike Grenari's publication) and some legal oriented publications. I was even

referred to and solicited a few years back to participate in the Russian leasing executive lease training that Bob Rodi participated in and has

written about in Leasing News, and I participated in that with pride, representing an industry and a country before Russian executive

attendees.  Every time I have written or lectured, I have always placed my credentials at the end of the article or in a resume about myself.

Anytime I send someone my resume I always include all my credentials. To empathize with the position that you have placed Gerry Egan in, I

don't believe that Gerry by circulating his credentials has used his position for profit. Certainly, Gerry would be hired for his overall

credentials, not just because he is the current President of NAELB. When I have been hired as an attorney, expert witness or education

provider, the people doing the hiring hire the whole person, considering all the credentials, knowledge, abilities and skills, not just one

position or one qualification.

 

 

 

So what's the best advice I can give?  Twofold. First, to all the people that work hard in this industry, go close a deal. But, use this approach.

After you close the deal, ask yourself if the customer is happy, the vendor is happy and the funder is happy. If that's the case, then on your

way home at night you can tell yourself that you have done a good thing for your industry. If not, then someone has a tarnished image of the

industry. That's the test that participants should use to resurrect the image of this industry. Second, to you Kit, tell people about that, publish

it and let your non-industry readers know of the good things and the good people in this industry. People will respect Leasing News a lot more

for it.

 

 

I know that you have probably received a l