Hayes---May He Rest in Peace
Equipment Leasing Association Membership at Year-End: 873
Leasing Group---May Not Be a Happy New Year
First 2002 Leasing Association Conference
AmX Equip. Finance V.P./Rockford Founder
Larry Hartmann joins Z Resource Group
John Salek Joins TCF Express Leasing
Reaction from Readers on:
December, 1971 Remembered---
Year 2001 in Review
DVI Closes $430 Million Asset-Backed Securitization
Compaq Study---IT Like to Lease, Especially at Zero Percent
Sales Tax : Sale/LeaseBack
subject and January 4 Cut Off
Dennis Brown, Equipment Leasing Association
denotes press release
Hayes---May He Rest in Peace
is sad news that I let
readers know the passage of a good friend,
in the leasing business for 28 years.
is from the San Jose Mercury News:
Henry Michael Hayes passed peacefully on December 30,2001 after
a long illness. Born in Richfield, Utah in 1940, he went on to
attend the University of Utah where he met his wife of 36 years,
Myrna Anderson. After graduating ,
two moved to the San Francisco Bay Area in the late sixties to
start a family and pursue a career.
He successfully worked in banking and financing in the
burgeoning Silicon Valley for the next 28 years ( Los Altos Leasing
). The family settled in Los Altos and stayed
for 25 years. We would
like him to be remembered as a kind, strong and gentle man who
was devoted to family and God.
He is survived by his wife Myrna, and three sons, Brooks,
John David, and Smith. May your heart be warm and happy with the
lilt of Irish laughter everyday in every way. And forever and ever after.;
Friends are invited to attend a memorial Service Friday,
January 4, 2002, at 3:00pm, at the Menlo Park Presbyterian Church
950 Santa Cruz Avenue, Menlo0o Park. Donations to the Pathways Hospice Foundation
65 El Camino Real, Menlo Park, Ca. 94025-5232 preferred.
had a warm smile. He was one of the original members of the Western
Association in the late 1970s, early 80s, and attended
all the United
of Equipment Leasing Silicon Valley Regional meetings.
well respected and liked by all the people who knew him.
Leasing Association Membership at Year-End: 873
dues have remained the same so there is no change in the dues
area. We do, however, have 873 member companies as of today, Jan.
3, 2002. If you need anything else please do not hesitate to ask.
Happy new Year!
Membership & Marketing
N. Fairfax Drive, Suite 550
June, 2001 the count was 731, and the previous high was the year-end
850 members. Congratulations
Equipment Leasing Association. For
list of their meetings and events, go to: http://www.leasingnews.org/meetings.htm
We have asked all associations for their year 2002 events, plus
in dues and the membership at year-end. editor )
Group---May Not Be a Happy New Year
just eliminated the final 3 business development positions. No more emphasis on new business development
plus eliminated a host of support positions as well. Third round in less than a year... You know what that means.
( name with held )
Our quick and painless
financing process has helped our vendor clients successfully fund
more than $1 billion in lease/finance transactions since 1988.
With our Web Finance PortalTM, we automate and
streamline the entire equipment financing process. No other service
provider intelligently links to strategic funding sources like
we do. Nor does any other firm have a more efficient and accurate
approach to managing and supporting the entire financial sales
from their website:
Group was launched in 1988 to provide leasing services to
Dell Computer Corporation. During our nine-year relationship
with Dell, we grew dynamically both in the number and types
of transactions we completed and the funding-source operating
models we used.
the early 90s when Dell entered the retail marketplace,
we expanded our services through agreements with CompUSA,
Inc. and Staples, Inc. and, in each case, became their leasing
service provider. We pioneered many novel developments in
the leasing finance industry, including:
small-ticket leasing program
PlanTM, a consumer lease
use of a delivery and acceptance
for lease transactions
In 1997, after transitioning the Dell account into newly
formed Dell Financial Services, LP, we began offering our
finely honed processes to other clientele. Now we deliver
diverse lease/financing service programs to a wide variety
of equipment vendors, financial institutions, captive finance
companies and lessors.
2002 Leasing Association Conference
the FIRST LEASING ASSOCIATION CONFERENCE in 2002 is the annual
Equipment Management Conference and Exhibition, sponsored by the
Equipment Leasing Association February 10 - 12, at the Marriott
Desert Springs Resort in Palm Desert, CA.
Over 40 service-providers--appraisers, remarketers, software
houses, and more--have already signed up to show their stuff.
To get details, your readers can go to elaonline.com/
The Leasing Site has the ELA Conference on February 10,
two days before
joint Eastern Association of Equipment Leasing and National Association
Equipment Leasing Brokers in Atlanta---started on February 11
an evening get together on February 10---however, Mr. Petta is
and we now correct this. editor )
February 10-12, 2002
Desert Springs Marriott Resort and Spa
Palm Desert, CA
full brochure (275k PDF
- A font of information and knowledge designed to help asset managers
thrive and prosper in an otherwise uncertain economic climate
- Valuable information to newcomers and seasoned professionals alike
on developments in asset management
- Keynote addresses covering negotiation strategies and the impact
of the economy on asset values worldwide
- Subject matter experts to provide updates on specific equipment
markets and industry sectors, ranging from computers to corporate
- Over 40 exhibitors on hand to meet with asset managers to explain
their company's programs and services
- Great networking opportunities: Newcomer Breakfast, Women in Leasing
Lunch; World-class exhibits.
- And, of course, the "Shoot-out in the Desert" golf tournament
Equipment management professionals, including senior managers
and their staff; service providers to the industry
AmX Equip. Finance V.P./Rockford Founder
Larry Hartmann joins Z Resource Group
MA Z Resource Group is
pleased to announce that Larry Hartmann has joined the firm as Managing Director of the
firms New Jersey Office. He
has also made an equity investment into the business.
Resource Group is a fast growing, nationwide specialty Executive
Search/Consulting firm headquartered in the Boston, MA area. The
company is entering its third year of providing talent acquisition
and consulting services to the Equipment Leasing, Financial Services,
Health Care and Biotechnology markets.
his new role with Z Resource Group, Mr. Hartmann will be active
in building a full-service operation in the NY/NJ area that will
continue to expand the firm's presence in the financial services/equipment
leasing marketplace as well as continue to grow the firms market
share in the health care and biotechnology sectors.
to joining Z, Mr. Hartmann was the Executive Vice President of
American Express Equipment Finance. From 1984-1998, Mr. Hartmann was a founder of Rockford Industries,
a publicly traded specialty finance company to the healthcare
and IT Markets. During his tenure, the company was recognized
as one of the INC. 500 fastest growing private companies, completed
a successful IPO and Nasdaq listing, and in 1998, was sold to
American Express. Mr. Hartmann is an active trustee for the Equipment Leasing Association
Foundation, a leading industry trade organization. (www.leasefoundation.org)
Founder, Ken Vancini Stated, "We are very pleased with the
addition of Mr. Hartmann to the team. His active involvement in
growing the business coupled with the additional financial resources
brought to the table arm the company for strong growth for years
to come. "
Hartmann related, "It is exciting to be able to support the
leasing industry's continued
growth in my new role with Z Resource Group. I believe our ability
to help client companies grow through strategic consulting coupled
with talent acquisition will provide a unique solution for many
of the industry's established and emerging leaders.
Hartmann can be reached at 201-560-9900 or by e-mail at
SALEK JOINS TCF EXPRESS LEASING
Leasing, Inc., Minnetonka, announces that John Salek
joins TCF Express Leasing as Vice President, National Accounts
Vendor Programs. TCF Express Leasing provides equipment financing
to small and mid-size companies through programs with vendors,
manufacturers, distributors and franchise organizations that are
acquiring business equipment and technology.
comes to TCF Express Leasing from CIT and has over 24 years experience
in equipment finance and vendor program development. He will focus
on establishing vendor programs in the construction industry as
well as printing, plastics and machine tools.
are pleased to bring John on board," said William S. Henak,
General Manager of TCF Express Leasing and Executive Vice President
of TCF Leasing, Inc. "His level of experience and knowledge
of the industry will be a great benefit to our company and customers."
Leasing, Inc., is a wholly owned leasing and equipment finance
subsidiary of TCF Financial Corporation (TCF) (NYSE.TCB). TCF
Leasing, Inc.'s corporate headquarters is located in Minnetonka,
Minnesota. TCF is a Wayzata, Minnesota- based national financial
holding company with $11.7 billion in assets. TCF has banking
offices in Minnesota, Illinois, Michigan, Wisconsin, Colorado
and Indiana. Other TCF affiliates provide mortgage banking, discount
brokerage, investment and insurance sales.
courtesy ELAonline.com )
#### ######################## #######################
story to help put things into perspective at the end of this
Kit. Thanks for sharing your own story!
let me say congratulations.
I, having some of the same
knowingly congratulate you.
If I had known how hard it would
would I have done it? Good question. At this point the rewards are
good. The most important characteristic you mentioned
persistence. You also point out the real value of a lease
the ability to sell. Yet this is the first duty most brokers delegate
grow. I realize that some brokers do better in the
long run by
a good support staff while keeping sales responsibility.
are hard to identify, and the fakes are too expensive and
to work with. Thanks for the history.
a wonderful career you've built!
familiar names throughout your write-up. My leasing career began
in February of '72.
a wonderful year, Kit....
Solutions for Leasing and Finance, Inc.
Holly Ridge Drive Camarillo, CA. 93012
805.383.8922 Fax 209.821.7252
Just wanted to write you a "thank you" note, privately,
for the service you are performing to our industry. It is no doubt a gratifying, yet sometimes
experience for you. I
hope it satisfies your need to continue your earlier career
and love of journalism without forfeiting your core activity
of earning through
I appreciate your passing the torch to your readers by allowing
us to express our views. I
always hope my contributions are consistent with the fundamental
wisdom laid out by first, spiritual law, and second, industry
Your sharing of how you got in this business was interesting. From my own anecdotal experience, I find many
of us, particularly long-timers enjoy sharing their
own particular story about how they entered this crazy business.
As a suggestion, it may be interesting material for future
issues of your newsletter.
Have a happy New Year.
National Business Credit, Inc.
2001 in Review
wanted to wish you and your family a Happy and Healthy New Year
was one heck of a year in the "show biz...I mean Lease
Biz" this past year,eh?
me, I never thought I would ever work for three different leasing
firms in one year...but it happened in 2001. So, Im kinda
of please to be getting to a New Year in 2002. But through it
all, the Leasing News got me through. There were day's when
it was quite lonely out there, but nice to hear from you and
the other wonderful readers in this great industry.
I enjoyed reading your story on 1971 and I think everyone who cut
their teeth in this business remembers a few "tree-less"
Holiday's now and then!
to a healthy and more prosperous New Year Kit and keep the news
article and wrap-up of the past year's events.
It was some year,
2001! We should all of us gotten wiser and more productive as a result
the fallout from our industry and the effects of terrorism in
country. Let's hope for a fast turnaround and increase
in 2002, a palindrome year that won't happen again until
2112! Have a happy, healthy and prosperous new year.
B. Geller, CLP
Hills, New York 10952
really enjoyed your year in review.
It reminds me that we all have to
to work smarter not harder. ( How smart am I? I'm at work on
day.) Thanks for doing such a great job with Leasingnews.
for the great year-end article...I hope you don't have 6"
we do in Atlanta. That is why I am working from home today.
We hope to
Friday by 10 AM.
Sales Tax: Sale/LeaseBack
subject and January 4 Cut Off
of Tax Administrators Executive Director Harley Duncan reminds
you that the cut-off date for making hotel reservations for the
upcoming meeting of the Streamlined Sales Tax Project (SSTP) and
the Implementing States is January 4, 2002.
SSTP meeting is being held on Wednesday and Thursday, January
23-24, 2002. The Implementing
States meeting will be held on January 25, 2002.
of these meetings will be held at the New Orleans Marriott located
at 555 Canal Street, New Orleans, Louisiana. A block of rooms
has been set-aside at the hotel. To make your reservations, call
1-888/364-1200 and ask for the STREAMLINED SALES TAX PROJECT room
block. The rate is $139 per night plus tax (currently 12 percent
plus $3 per room). The cut-off date for making reservations is
January 4, 2002. The phone number at the hotel is 504-581-1000;
the FAX number is 504/523-6755. Rooms have been blocked for Tuesday
through Saturday evening.
you made a room reservation under space originally reserved for
the Federation of Tax Administrators (FTA), please double-check
to be certain you're getting the $139 rate.
To be safe, change it to the Streamlined Sales Tax Project
is a registration fee for each of these meetings. The fee for
the Streamlined Sales Tax Project meeting is $175; the fee for
the Implementing States meeting is $125. The fee includes a continental
breakfast, lunch and assorted breaks each day. Persons attending
both meetings are required to pay both fees.
Wednesday morning (January 23) session (beginning at 8:30 am)
will be a Government-only Combined Work Group session that concludes
at noon. Following lunch (open to all attendees), Wednesday afternoon
and Thursday morning will be devoted to a series of working group
meetings devoted to particular topics. Thursday afternoon will
consist of a public project meeting, including a review of activities
from the working group sessions and a public comment session.
The session is expected to adjourn by 3:30 pm. A more detailed
agenda is forthcoming.
Implementing States meeting will begin at 8:30 am on Friday, January
25, 2002 and is expected to adjourn at 5:00 pm. The session will
be devoted to developing and approving a work plan for the group
as well as beginning the review of an initial set of issues before
registration form for the meetings as well as an agenda for the
SSTP meeting is available at <http://www.streamlinedsalestax.org>.
In addition, you can access online registration from that
the Streamlined Sales Tax Project (SSTP or Project) moves forward,
industry representatives have recommended drafting a uniform "sale-leaseback"
definition for the interstate Agreement that will become model
legislation sent to state legislatures. This would be an optional definition a state may elect to adopt
and be separate from the Lease & Rental definition contained
in the definition of a sale.
A private sector workgroup was created at the SSTP meeting
in Denver to draft a recommendation.
is a lack of uniformity among states defining sale-leasebacks
and a uniform definition would modify provisions that currently
exist in states by regulation or statute.
As a corollary, some states have double taxation resulting
from tax on the purchase and subsequent lease while others only
tax the transaction once.
Would an optional SLB definition place leasing in a spotlight
imperiling these transactions with another tax levy where currently
exempt from double taxation or could the definition offer uniformity
between states without risk of extra taxes?
has been expressed about sale-leasebacks being highlighted during
current fiscal conditions as states search for new revenue with
passage of the Ohio up-front sales tax as a primary example. Although the Project works dutifully to preserve
exemptions, an SLB definition posed in conventional statutory
text could make these transactions taxable unless an existing
exemption were preserved or another enacted at the same time.
With the SLB exemption having already been removed from
the lease definition, does an SLB definition raise the specter
of double taxation in states currently viewing sale-leasebacks
as a single taxable event? Conversely, could an SLB definition
drafted as an exclusion from tax offer tax relief in those states
presently applying double sales tax to sale-leaseback transactions?
in the conference call will address the issues posed above to
determine if an optional SLB definition should be drafted. If deciding to proceed, ELA State Government
Relations Committee Chair Valerie Guerrieri, Tyco Capital/CIT,
will offer an initial draft definition to begin discussion.
Compaq Study---IT Like to Lease, Especially at Zero Percent
by Compaq Financial Services,
Information Technology Leasing to Increase in 2002
74 Percent of Companies That Now Lease Plan to Lease Same
More This Year
Financial Services First to Recognize Trend
By Extending Zero Percent
Leasing to Customers on Total Solutions
-- A survey conducted over the past month of approximately 700
IT decision makers indicates that chief technology officers and
chief financial officers recognize that leasing helps stretch
their IT budgets and simplify the financial lifecycle management
process of their information technology.
60 percent of the respondents, with more than 100 desktops/laptops
and who plan to lease in 2002, stated that the current economic
downturn would have an impact on their company's decision to lease
more IT equipment in 2002 than in 2001.
The survey, commissioned by Compaq Financial Services Corporation
and conducted between Dec. 21 - Jan. 2, also showed that 41 percent
of companies said that the main reason they would lease in 2002
was to keep their IT equipment from becoming obsolete.
A total of 23 percent stated that cash flow management
was the reason, while 14 percent claimed that asset management
services was their primary reason for leasing in 2002.
enable customers to take advantage of the benefits of leasing,
Compaq Financial Services Corporation, the wholly owned leasing
and financial services subsidiary of Compaq Computer Corporation
(NYSE: CPQ), is offering zero percent leasing which gives its
customers the ability to lease a total Compaq solution, from hardware
and software to services today and pay for it over 24 months with
a zero percent lease rate*. Irv Rothman, president and chief executive officer of Compaq Financial
Services, said reaching out to IT decision makers in this challenging
economy with a zero percent leasing offer makes good business
an environment where technology budgets may be limited, but technology
needs are greater, leasing is a superior alternative for IT decision
makers," Rothman said. "For
many companies, buying equipment through big capital outlays is
just no longer financially practical.
Leasing a total Compaq solution is an affordable way for
these businesses to effectively manage their cash flow while at
the same time staying ahead of the technology curve."
Percent Leasing Program for Compaq Solutions:
24-month/0 percent lease rate is applicable for all transactions
Offer valid from January 1, 2002 to March 31, 2002.
No down payment required.
Easy calculation of monthly payment -- just divide the
cost by 24. For example, the monthly payment for a $1200
would be $50 per month.
Costs of software and services qualify for the 0 percent
provided those costs do not exceed 25 percent of the total
the hardware, software and services in the transaction.
survey was Internet based. A list of self identified IT professionals with decision-making
influence and/or responsibility were contacted via email and asked
to complete the survey. A
total of 670 responses were received between December 21 and January
2. Of that total, 149 identified that their company maintained more
than 100 desktops/laptops and that they planned to lease some
portion of their IT equipment in 2002.
Hill and Knowlton, a worldwide public relations agency,
conducted the survey.
companies that plan to lease in 2002 and that maintain over 100
pieces of IT equipment, including desktops and laptops:
38 percent use cash as the primary method of payment for
equipment, compared to 34 percent who lease.
15 percent are in technology industry, 13 percent in manufacturing,
13 percent in telecommunications, 11 percent in financial
percent in engineering/architecture/design, 5 percent in
5 percent in retail, 1 percent in media/entertainment,
27 percent in other industries.
41 percent cited technology obsolescence protection as
for leasing IT equipment, followed by 23 percent that cited
flow management, 14 percent that cited asset management
13 percent that cited technology disposition concerns, and
percent that cited low monthly payment.
companies that maintain under 100 pieces of IT equipment, including
desktops and laptops:
41 percent use cash as the primary method of payment for
equipment, compared to 37 percent who use credit cards.
51 percent said that current economic conditions will have
on their company's decision to lease more IT equipment
in 2002 than
in 2001, while 49 percent responded that the current economic
situation will not affect their decision.
23 percent are in the consulting business, 13 percent in
8 percent in manufacturing, 7 percent in technology, 6
engineering/architecture/design, 6 percent in financial
percent in media/entertainment, 3 percent in telecommunications
percent in other industries.
30 percent cited cash flow management as the main reason
equipment, followed by 30 percent that cited low monthly payment,
percent that cited technology obsolescence protection, 9 percent
cited asset management services, and 5 percent that cited
in 1982, Compaq Computer Corporation is a leading global provider
of enterprise technology and solutions. Compaq designs, develops, manufactures and
markets hardware, software, solutions and services, including
industry-leading enterprise storage and computing solutions, fault-tolerant
business-critical solutions, communication products, and desktop
and portable personal computers that are sold in more than 200
on Compaq and its products and services is available at www.compaq.com
0% lease offer is available through Compaq Financial Services
Corporation (CFSC) to qualified commercial customers in the U.S.
and is subject to credit approval and execution of CFSC documentation. Implicit interest rate, assuming lessee does
not exercise a fair market value purchase option at the end of
the lease term and timely returns leased equipment to CFSC at
the end of the lease term and disregarding any charges payable
by lessee other than rent payments (such as taxes, fees, and shipping
charges). Under this program, a FMV lease term of 24 months is
available for qualifying lease transactions between $499 and $100,000.
$0 down excludes a first rent payment due in advance.
Costs of software and services qualify for the 0% implicit
lease rate provided they do not exceed 25% of the total cost of
all hardware, software, and services. This offer is valid through March 31, 2002
to qualified commercial customers in the U.S., subject to credit
approval and execution of CFSC lease documentation.
Other restrictions may apply and CFSC reserves the right
to change or cancel this program at any time without notice.
ProLiant, AlphaServer, Tru64, StorageWorks, NonStop, Himalaya,
iPAQ, and the Compaq logo are trademarks of Compaq Information
Technologies Group, L.P. This
news release may contain forward-looking statements that involve
risks, uncertainties and assumptions.
All statements other than statements of historical fact
are statements that could be deemed forward-looking statements.
Risks, uncertainties and assumptions include the possibility
that the Hewlett-Packard/Compaq merger does not close or that
the companies may be required to modify aspects of the transaction
to achieve regulatory approval or that prior to the closing of
the proposed merger, the businesses of the companies suffer due
to uncertainty; the market for the sale of certain products and
services may not develop as expected; that development of these
products and services may not proceed as planned; that Compaq
and Hewlett-Packard are unable to transition customers, successfully
execute their integration strategies, or achieve planned synergies;
other risks that are described from time to time in Compaq and
Hewlett-Packard's Securities and Exchange Commission reports (including
but not limited to Compaq's annual report on Form 10-K for the
year ended December 31, 2000, HP's annual report on Form 10-K
for the year ended October 31, 2000, and subsequently filed reports). If any of these risks or uncertainties materializes or any of these
assumptions proves incorrect, Compaq's results could differ materially
from Compaq's expectations in these statements. Compaq assumes no obligation and does not intend to update these
Closes $430 Million Asset-Backed Securitization
Inc. (NYSE: DVI) announced the successful completion of a $429.6
million equipment lease asset-backed securitization. This transaction represents the largest transaction
in our history. DVI has
completed 29 successful asset-backed securitizations, and since
the initial transaction in 1991, the Company has placed $3.9 billion
of such asset-backed notes in the market.
The securitized assets are comprised of loans and leases
secured by medical equipment.
$406 million public portion of this transaction was led by Merrill
Lynch and co- managed by Banc One Capital Markets, Inc. Both Fitch, Inc. and Moody's Investor Service,
Inc. rated each of the securitization classes of notes, with 88%
of the notes rated AAA or its equivalent.
R. Garfinkel, Executive Vice President and Chief Financial Officer,
commented, "DVI is pleased with the execution of this securitization
transaction and the positive reception of its asset-backed notes
in the market. We continue
to enter the asset-backed securitization market as a part of our
balanced use of capital markets to meet our growth requirements.
The equipment securitization market continues to be one
of the most stable and viable markets for term debt."
is a leading independent specialty finance company for healthcare
providers worldwide with $2.4 billion of managed assets. DVI finances medical equipment through offices
maintained in the United States, Europe, Asia, Latin America and
South Africa. DVI also
offers lines of credit backed by healthcare receivables in the
United States. Additional information is available at www.dvi-inc.com.
courtesy of ELAonline.com )