July 18, 2001

 

Headlines---

 

  Tyco Reports 24% Increase 3^rd Quarter

   IBM Reports 3% Decrease,But Profit $103 Million

    Greenspan Describes Economy as “ Still Standing.”

     Capital Stream Details on TIBCO

       Advisa, McCue Systems Offer Like-Kind Exchange Application

         Heller Financial, Inc. Declares Dividends for Class A and B Common Stock

eFinancial Projects Are Destined to Fail

           Without Concerted Project and Resource Management Methodologies

 

Ethics Dialog—Anonymous   ---- “Blah-Blah-Blah?”

 

   plus

 

The Financial Resource Conference  August 28-30, 2001 Winners ! ! !

 

 

###  denotes Company Press release

----------------------------------------------------------------------------------------------------###################

Tyco International Reports 24 Percent Increase in Third Quarter Earnings Per Share; Per Share Earnings Rise to 72 Cents from 58 Cents; Free Cash Flow Reaches $1.5 Billion

\

Tyco International Ltd. (NYSE: TYC) (BSX: TYC) (LSE: TYI), a diversified manufacturing
and service company, reported today that diluted earnings per share for its third quarter ended
June 30, 2001 were 72 cents, a 24 percent increase over earnings of 58 cents per share for the
same quarter last year. Net income before extraordinary items rose to $1.3 billion, an increase
of 32 percent compared to $992.1 million last year. Revenues for the quarter rose 25 percent to
$9.3 billion compared with last year's $7.4 billion.

 

These results are before non-recurring items. After giving effect to such items, diluted earnings
per share before extraordinary items for the third quarter of fiscal 2001 were 67 cents, or $1.2

billion, compared to 58 cents, or $997.3 million, in the third quarter of fiscal 2000.

 

Income before non-recurring items, extraordinary items and cumulative effect of accounting
change for the nine months ended June 30, 2001 rose to $3.5 billion, or $1.94 per diluted share,
a 32 percent increase over last year's first nine months' earnings of $2.6 billion, or $1.54 per
diluted share. Revenues for the first nine months of fiscal 2001 increased to $26.2 billion, 24
percent higher than last year's first nine months' revenues of $21.1 billion. After giving effect
to non-recurring items, diluted earnings per share before extraordinary items and cumulative
effect of accounting change were $1.89, or $3.4 billion, for the first nine months of fiscal 2001
compared to $1.52, or $2.6 billion, in fiscal 2000.

 

"Tyco's strong results in the quarter exemplify our longstanding strategy of building our base of
recurring and service revenues and non-cyclical businesses. Expansion of our recurring revenue
base in the Fire and Security segment and growth in our Healthcare business more than offset
weakness in Electronics," said L. Dennis Kozlowski, Chairman and Chief Executive Officer of Tyco.

"The strength and diversity of our business mix makes us comfortable with the outlook for Tyco
during the remainder of fiscal 2001 as well as fiscal 2002," Kozlowski continued. "Assuming current business trends, we expect to achieve our previously stated guidance of $2.77-2.78 earnings per
share and, while it's early to make specific predictions, we believe that $3.45 per share is a
reasonable estimate for fiscal 2002."

 

"On the acquisition front, we remain very much on plan. The acquisition of CIT was completed on
June 1, 2001, and its integration is proceeding smoothly. Cost reductions have been implemented,
less desirable assets are being divested, and the opportunities for financing the needs of Tyco's
customer base are being actively pursued. We are also on plan with integration and cost
reductions at SecurityLink and we look forward to closing the C.R. Bard acquisition during the
fourth calendar quarter," Kozlowski concluded.

 

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

 

 

 

 

 

CapitalStream Selects TIBCO Software To Provide Enterprise Application Integration Across Its Networked Commercial Finance Platform

 

CapitalStream improves its robust commercial finance platform; additional technology will enable rapid, scalable integration for third-party and customers’ legacy systems

 

SEATTLE, WA.  –- CapitalStream (www.CapitalStream.com), a Seattle-based provider of commercial finance automation technology, today announced it will utilize the TIBCO Software Inc. (Nasdaq: TIBX) Enterprise Application Integration (EAI) suite to integrate, connect and extend its network and offerings for banks, financial institutions and manufacturers.  The choice for CapitalStream is significant in that it will make it possible for its offering to integrate more quickly and easily with customer legacy systems and increase customer usage flexibility – all while accelerating the commercial finance transaction workflow process. 

 

CapitalStream will use TIBCO’s EAI solution to enhance its FlowChart Editor process, which can substantially reduce a lender’s risk, while increasing its profitability.  Currently, CapitalStream’s FlowChart Editor is able to automate the credit decision making process as well as assess risk, based on business rules set in advance by the customer.  Once complete, the system initiates an additional set of actions including automatic assignment, forwarding of credit applications to a funding source for approval, and completes the credit approval cycle with the booking of the transaction. The customer has the ability to change or modify their business rules, as their requirements evolve, at anytime from the convenience of their desktop, thus saving time and money. 

 

By adding TIBCO’s technology – also known as The Information Bus^TMor the “TIB®”– once the origination process has been engaged, CapitalStream’s FlowChart Editor will be able to tie together third-party and legacy systems, and concurrently perform multiple tasks, such as credit screening, fraud check, credit rating, proper equipment usage, deal size and other elements integral to the decision making process.  

 

“We at CapitalStream are pleased to have TIBCO as our EAI vendor,” said Jeffrey Dirks, executive vice president and e-Commerce Operating Officer, CapitalStream.  “By incorporating their integration technology into our solution we are creating an offering that gives customers ease of integration with the ability to link together disparate systems. This is the key to streamlining the commercial finance process.”

 

CapitalStream is planning on full implementation of the Integration Manager portion of the EAI solution by 4th quarter of 2001.  In 2002 all new CapitalStream customers will experience the faster, more efficient CapitalStream - FinanceCenter offering.  Current customers will also be able to adopt the enhanced CapitalStream solution at that time.

 

“CapitalStream offers a key application for banks and companies looking to provide commercial financing,” said Fred Meyer, chief marketing officer for TIBCO Software. “By basing their platform on TIBCO’s technology, CapitalStream will have the benefits of industry-leading integration, B2B and portal technologies that will enable them to quickly connect to customers and the ability to increase their competitiveness in the marketplace.”

 

About CapitalStream

Seattle-based CapitalStream (http://www.capitalstream.com) automates and streamlines commercial finance processes for banks, finance companies, and manufacturers.  CapitalStream – FinanceCenterÔ reduces processing time, lowers costs, and enables

companies to cost effectively take advantage of new business opportunities by automating manual processes for leases, loans, lines of credit, and credit cards. CapitalStream, an established industry leader for more than five years with deep knowledge about the inner workings of the financing world, has helped hundreds of financial organizations increase their competitiveness, customer service and profitability.

 

About TIBCO Software Inc.
TIBCO Software Inc. (Nasdaq: TIBX) is a leading provider of total business integration solutions delivering infrastructure software that enables businesses to seamlessly integrate business systems in real-time.  TIBCO’s products enable the real-time distribution of information through patented technology called The Information Bus^TM or TIB®.  TIBCO technology was first used to digitize Wall Street and has since been adopted in diverse industries including financial services, telecommunications, electronic commerce, transportation, logistics, manufacturing and energy.  TIBCO’s global customer base includes more than 1,200 customers such as Cisco Systems, Yahoo!, Ariba, NEC, Enron, Sun Microsystems, GE Capital, The Limited, Delta Air Lines, Philips, AT&T and Pirelli.  Headquartered in Palo Alto, California, TIBCO can be reached at 650-846-1000 or on the web at www.tibco.com.

 

TIBCO, TIBCO Software, TIBCO ActiveEnterprise, TIB/NetworkConnector, TIB/BusinessConnect, TIB/InConcert, TIB/MessageBroker, TIB/Rendezvous, TIB/Hawk, The Information Bus and TIB are trademarks or registered trademarks of TIBCO Software Inc.  All other product and company names and marks mentioned in this document are the property of their respective owners and are mentioned for identification purposes only.

 

Legal Notice Regarding Forward-Looking Statements: This release contains forward-looking statements regarding TIBCO's business, customers, markets served or other factors including the ability of products to meet customers’ expectations, needs, or perform as described that may affect future earnings or financial results. Our actual results could differ in such forward-looking statements. Reasons for why actual results could differ materially include if the products are unable to successfully meet customers’ expectations, needs, or perform as described. Additional information concerning factors that could cause our actual results to differ materially from those contained in the forward-looking statements can be found in TIBCO Software's filings with the Securities and Exchange Commission ("SEC"), including but not limited to its most recent reports on Forms 10-Q and 10-K filed with the SEC on April 12, 2001 and February 27, 2001, respectively, which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements including limited independent operating history, history of losses, unpredictability of future revenue, dependence on a limited number of customers, relationship with Reuters Group PLC, rapid technological and market changes, risks associated with infrastructure software and volatility of stock price. Copies of filings made with the SEC are available through the SEC's electronic data gather analysis and retrieval system (EDGAR) at www.sec.gov. TIBCO assumes no obligation to update the forward-looking statements included in this document.

 

###

SecureLease VISION to Provide Credit Bureau Reports with MicroBilt’s SDK

 

SecureLease, a leading provider of Internet-based services to the leasing industry, has integrated MicroBilt’s Software Development Kit (SDK) into VISION—its new Application Service Provider product. Subscribers now can obtain reliable credit information instantly to evaluate lease applications.

 

SecureLease VISION offers companies building blocks to rapidly deploy B2B finance solutions that fit their unique needs. VISION uses the Application Service Provider (ASP) model to deliver an Internet presence with the subscriber's distinctive marketing personality.  Capabilities range from email and web site hosting, to full e-commerce solutions including credit scoring and electronic document delivery.  Subscribers choose the features they need for a cost effective solution tailored to their requirements.

 

With the addition of the powerful MicroBilt SDK, subscribers can now elect to define acceptance criteria and evaluate credit bureau data from the three major consumer bureaus and two commercial bureaus.  Companies have complete flexibility to combine the best of automated processing and the human touch to serve their customers.

 

SecureLease was seeking a faster, more secure, and more economical alternative for accessing credit bureau products. According to Steve Lundergan, SecureLease President, “We chose MicroBilt because they were able to provide a superior product, they had great experience in the industry, and they were very responsive.”

 

The MicroBilt SDK puts companies on the leading edge of automating credit decisions. Lease applications receive fast replies.  Routine paper shuffling is eliminated so leasing companies can focus on building their business and serving their customers.  “MicroBilt has relieved us of a significant burden,” said Kirk Hall, SecureLease CTO. “We were able to integrate the MicroBilt SDK into VISION in under two weeks, saving significant development cost, and we no longer have to maintain direct connections to the credit bureaus.”

 

MicroBilt’s SDK is geared to companies who extend credit or have a need to run credit reports for their businesses.  The MicroBilt interface provides a way for developers to access and integrate multiple credit bureau data and reporting into their application.

 

“We are pleased that SecureLease chose to replace their existing credit access capability with the MicroBilt SDK,” said Ken Hill, President of MicroBilt Corporation.  “They recognized the value of our product and our experience with the credit bureaus.”

 

VISION is SecureLease’s second release of its ASP-based product, initially offered in September of 2000.  Developed using the Microsoft .NET framework, VISION showcases the versatility of new Internet development tools to provide Brokers, Lessors, Funders, Banks and Financial Institutions increased efficiency and productivity with automatic processing options, flexible integration with external systems, secure and reliable access to confidential information and rapid deployment while accommodating clients' specific needs.

 

About SecureLease:

 

SecureLease.net was originally created to serve the equipment leasing industry.  The goal of the companyOur goal is to providesmall to mid-sized leasing companiessubscribers access to Ee-commerce solutions at an affordable price.  The company’s Our philosophy is that technology should automate routine processes and provide real-time information, but can never replace industry experience and equipment knowledge.  TheOur software uses an Application Service Provider (ASP) model so clients can quickly establish a unique Internet identity.   SecureLease.net is responsible for maintaining the hardware and software, while the subscriber maintains complete control of access to confidential information.

 

SecureLease wasE established in 1999 to build on the success of software developed with the sponsorship of for Richlund & Associates, a leasing company headquartered in St. Charles, MO.. The leadership team offers leasing and finance industry experience, technology expertise and a commitment to listen to our customers.  

 

About MicroBilt:

MicroBilt, a division of Bristol, is a nationwide leader in credit bureau data access and retrieval, providing credit solutions to the Financial (banking, mortgages, home equity, credit union, collections), Rental or Leasing, Health Care, Insurance, Law Enforcement, Educational (Universities, Colleges and institutions of higher learning) and Utilities (gas, electric, cellular, cable, residential phones) industries. MicroBilt provides interfaces with the three consumer bureaus, Equifax (NYSE: EFX), Experian (London Stock Exchange: GUS) and Trans Union and the two commercial bureaus, Dun & Bradstreet and Experian Business. Bureau data is available via dial-up software, Internet website access (www.creditcommander.com), or through an integrated custom interface utilizing the Software Developers Kit. The company also enables web sites to enhance their content offerings by delivering a CreditCommander.com co-branded site to their established online communities. MicroBilt services over 30,000 customers throughout the United States and Canada. MicroBilt (www.microbilt.com), formerly a First Data Corporation (NYSE: FDC) subsidiary, is headquartered in Kennesaw, Georgia with offices in Princeton, New Jersey, South Carolina, Arizona and California.

 

Greenspan Says More Rate Cuts May Be Needed to Spur Economy

 

   Describes the Economy  as “ Still Standing.”

 

Wall Street Journal

 

Federal Reserve Chairman Alan Greenspan cautioned that the economy still hasn't emerged from its yearlong slump and could get worse.

 

"The period of sub-par economic performance ... is not yet over, and we are not free of the risk that economic weakness will be greater than currently anticipated and require further policy response," Greenspan told the House Financial Services Committee.

Greenspan said Fed policy makers have lowered their forecast for economic growth this year. The range of economic growth, as measured by the gross domestic product, in 2001 is now forecast at between 1.5% and 2%, rather than 2% to 2.75%. The Fed has predicted the economy would rebound to a stronger rate of growth in the range of 3% to 3.5% in 2002.

 

In an effort to stave off recession, the central bank has slashed interest rates six times this year, totaling 2.75 percentage points, the most aggressive credit-easing campaign in nearly two decades.

 

Economists viewed Greenspan's remarks as sending a strong signal that another interest rate cut could come as soon as the Fed's next meeting on Aug. 21.

"I think that he was a bit clearer today in expressing concern about the potential for continued weakness for the economy than he typically is and that he is holding up a flag. He is telling everybody he is absolutely prepared to do all that is necessary to make sure things don't get any worse," said economist Joel Naroff of Naroff Economic Advisors.

 

Greenspan expressed hope that the Fed's rate reductions - along with falling energy costs and soon-to-be mailed tax-rebate checks - will bolster economic growth in the coming months.

 

"By aggressively easing the stance of monetary policy, the Federal Reserve has moved to support demand, and, we trust, help lay the groundwork for the economy to achieve maximum sustainable growth," Greenspan said.

 

One of the reasons the Fed has been able to cut interest rates so much, Greenspan said, is because inflation is well contained. That should continue, given that energy prices are starting to fall.

 

The Labor Department said that the consumer-price index rose a seasonally adjusted 0.2% in June after a 0.4% increase in May. The so-called core index, which excludes volatile food and energy items, increased 0.3% after a 0.1% increase in May. The core index rose 2.7% in the 12 months through June, up from a 2.5% annual rate in May.

 

Overall, the CPI rose 3.2% in June from a year earlier.

 

Energy prices fell 0.9% after surging 3.1% in May. Natural-gas prices fell 5.6%, their biggest drop ever, but electricity prices jumped a record 3.8%. Gasoline prices fell 2.6%.

Housing prices, which make up 40% of the index, grew 0.4% in June after increasing 0.4% in May.

 

Greenspan said that, while inflation remains in check, "Uncertainties surrounding the current economic situation are considerable," he said.

 

Until there is more evidence that businesses have successfully completed getting their excess stocks in line with sales and companies ramp up investment in computers and other equipment, "The risks would seem to remain mostly tilted toward weakness in the economy," Greenspan said.

 

Much of the economic slowdown comes from businesses rapidly and sharply cutting back on production in the face of sagging demand. Companies have laid off workers, trimmed hours and deeply discounted merchandise to work off excess inventories.

 

Economic upheaval in other countries, coupled with rising energy prices last year into this year, intensified the slowdown and drained businesses' and consumers' purchasing power, Greenspan said.

 

Greenspan did not predict when businesses would complete the paring of inventories. "At some point, inventory liquidation will come to an end, and its termination will spur production and incomes," he said.

 

Economists say once companies work off excess inventories, they will be in a position to rev up production, which would bode well for a rebound in economic growth.

 

Consumers, whose spending accounts for two-thirds of all economic activity, have been a main force keeping the economy afloat. Household disposable income, Greenspan said, is now being bolstered by President Bush's new tax cuts.

Yet, there are downside risks to consumer spending in the next few quarters, he said. The sagging stock market has reduced household wealth and is likely to restrain consumer spending in the future. A weaker labor market also could damp spending.

 

Even against these risks, Greenspan said, "It is notable how well the U.S. economy has withstood the many negative forces weighing on it."

 

Separately, the Commerce Department said housing starts rose 3% to a seasonally adjusted 1.658 million annual rate in June, following a revised 1% decline in May to a 1.610 million pace. The May rate initially had been estimated as a 0.4% drop to 1.622 million annual rate.

The report surprised economists, who had expected a decline to a 1.60 million rate. The data show the housing sector continues to be an area of strength in an otherwise struggling U.S. economy.

 

The report signaled some possible weakness down the line, however.

 

June building permits, an indication of future activity, fell 3.3% to a seasonally-adjusted 1.568 million annual rate, the Commerce Department said. The rate was short of the 1.61 million units expected by economists.

 

The National Association of Home Builders reported that its index for new, single-family homes dipped to 56 in July from 58 in June, still a relatively high level.

Single-family home construction, which accounts for more than two-thirds of all residential construction, increased 1.4%.

 

Housing starts were up 6.3% year-on-year.

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

###################################   ##########   

 

BM Credit Reports 2001 Second-quarter Financial Results

 

 

ARMONK, N.Y.--( --IBM Credit Corporation today reported second-quarter 2001 net earnings of $103.47 million, a 3 percent decrease, compared with $106.15 million for the second quarter of 2000. The annualized return on average equity was 22.4 percent, compared with 17.7 percent in 2000.

 

New customer financing originations(a) for acquisition of information technology products and services increased 5 percent to $1.74 billion in the second quarter of 2001, compared with $1.66 billion for the same period in 2000. New commercial financing originations -- providing working capital for inventory, accounts receivable and acquisition financing -- decreased 19 percent to $2.67 billion, compared with $3.30 billion for the same 2000 period.

 

At June 30, 2001, total assets were $15.71 billion, compared with $16.80 billion at December 31, 2001, a decrease of 6 percent. Retained earnings were $1.22 billion, compared with $1.43 billion at December 31, 2000, a decrease of 15 percent. Retained earnings at June 30, 2000, were $1.63 billion.

 

For the first half of 2001, net earnings were $207.54 million, an increase of 2 percent, compared with $202.84 million for the same period of 2000. For the first half of 2001, customer financing originations(a) increased by 21 percent to $3.24 billion, compared with $2.68 billion for the first half of 2000. For the first half of 2001, commercial financing originations decreased by 8 percent to $5.65 billion, compared with $6.13 billion for the same 2000 period.

 

IBM Credit Corporation in the United States is part of the worldwide IBM Global Financing organization. With more than $46 billion in new financing originations in 2000, IBM Global Financing offers businesses of all sizes leasing and financing solutions for IBM and non-IBM hardware, software and services. In addition, IBM Global Financing provides flexible commercial financing offerings for inventory, accounts receivable and other working capital requirements. Visit the IBM Global Financing home page at www.ibm.com/financing. Forward-Looking and Cautionary Statements

 

Except for historical information and discussions contained herein, statements contained in this release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially, as discussed in the company's filings with the Securities and Exchange Commission.

 

(a) New customer financing originations reflect assets either owned or managed by IBM Credit Corporation.

 

CONTACT: 

 

IBM Global Financing

 

J. Timothy Ohsann, 914/765-6647

 

ohsann@us.ibm.com

 

########## ####################################

 

Ethics Dialog---Anonymous Response

 

 

The CLP title is a joke. No one cares except the few blow hards in our industry who think the title carries any merit (ex. Bob Rodi). Hey Bob, stop writing articles and hit the pavement for some new business. If you stopped complaining about the "unethical" business tactics in our industry and actually put forth some effort, maybe LeaseNow can survive and fund some deals... maybe even make a few funding sources happy??? The industry is fine, take it from a former stock broker. You do not want government regulations or intervention. I remember having to have a manager review and screen my fax before I could even send it out to my client. Having a CLP license will not help and the various leasing organizations are worthless (ex. UAEL, ELA, NAELB). I suggest everyone comprise a list of lessee's who have been burned by specific brokers. Next time you are in a deal with one of these brokers, have the customer contact the company that was burned by your competition. If word gets out, people will avoid the "unethical" brokers in our industry. Keep up the good work Kit.

 

+++

     

 

After reading all of the letters questioning the ethic’s of our

industry, they all have very one thing in common. They are all written by

small brokers.

 

Small brokers just might be a dying breed, it is just to difficult to

compete in today’s markets when American Express, GE Capitol, Wells Fargo

etc can remain highly profitable funding $10M deals at under 10% APR

including residuals of 15-20%. Lets look at one of my current promotion for

the telecom industry. 36 months, 1 advance, zero doc fee, FMV not to exceed

20%, minimum transaction of $2M.

 

I find to quite entertaining when these small timers talk about ethic’s when

they buy money @ 12.00% APR, add $75.00 doc fee, 10 points of profit and

call it a good deal. Charging these small business owners outrageous lease

pricing is what gives the industry a bad name. Are 10 points of commission

ethical? NOT! But I’m sure all of these brokers would like to get these

types of yields on every transaction. It’s the life of the small ticket

broker but it is also ruining small businesses nationwide.

 

I had a customer mail me a thank you card that I received today. I booked a

lease for this customer with a payment of $491.00 (our yield on this

transaction was 11.49%). When I got a hold of this gentleman originally, he

had docs from Republic Leasing with a payment of $688.00. Same terms (48

month,1 advance, 10%put) WOW! He had them signed and ready to go back. This

customer has 3 leases already booked with Republic (from a small broker) and

the customer didn’t want to talk to me about financing because he came to

the table with his own (TRUSTED) leasing company. This customer walked into

my vendor with an approval letter and the vendor sold him on my financing

product.

 

A question of ethic’s?  Ask yourself about ethic’s the next time you try to

20 point a small business owner….

 

Name Withheld

 

+++ 

       

Re: All this talk of talk of Licenses, Ethics, etc...

 

            BLAH BLAH BLAH BLAH BLAH BLAH, I wish so many big blow ups wouldn't happen.

BLAH BLAH BLAH BLAH BLAH BLAH BLAH, why can't we police ourselves.  BLAH BLAH BLAH BLAH BLAH BLAH BLAH BLAH BLAH, Mike Price this and Bankvest that.

BLAH BLAH BLAH BLAH BLAH BLAH, things are tough because of all the deceit.

BLAH BLAH BLAH BLAH BLAH BLAH BLAH BLAH BLAH BLAH BLAH BLAH BLAH BLAH

(insert any other complaints here).

 

            Funny how we did not hear about these complaints as long as the Bankvests

and Unicaps were buying weak paper from everyone.  All of a sudden everyone

has become saints.  Some of you will say, "but I didn't do business with

them", but what about that deal you sent to the superbroker who got it done?

Remember how you couldn't believe anyone bought that deal?  Did you laugh

about it?  The problem is and never will be just "them".  Greed is the

problem, and I have yet to see a course or a piece of legislation that will

do away with greed, so just please give up on this issue!  Do the best you

can to do a good and moral job in this business and save this space for more

valuable information.  All this BLAH BLAH BLAH BLAH BLAH BLAH is doing no good, because when you wake up in the morning the answer is staring at you

in the mirror!

 

P.S.  I bet I can guess Bob Rodi's response: BLAH BLAH BLAH BLAH BLAH BLAH BLAH BLAH BLAH BLAH BLAH BLAH!

 

Please withhold name!

 

++++

 

I have been involved in the leasing business in one way or another since the

early '90's, and have been involved as a broker for approximately 18 months.

 

I thought my view of brokers and funding sources was negative when I started

in this business...that was nothing compared to how I feel now.  I have

never, in my entire life in business, had my credibility questioned as it

has been since I've been representing myself as a leasing broker.

 

The equipment leasing business, from my little corner of the world, is the

wackiest industry I've ever seen.  I have seen more dishonest people, from

brokers misrepresenting situations, and risking it all, for a couple

thousand dollars, to "funding sources" that are actually brokers themselves,

superbrokers who, at the end of the day, will lie to you just like a

teenager sneaking in the house at midnight.

 

I agree with Barry Marks...everyone knows who the dishonest participants in

our industry are.  Avoid them and they will go away; just like pulling a

weed out of the ground and laying it on the pavement, it will die in short

order.

 

As I have no idea where my comments may land, and I'm a small fish in a big

pond, I would like to remain anonymous.

 

++++

 

+++

 

Signed Comments----

 

My two cents (francs) worth on the issue of Ethics:

 

I could not agree more with Debbie Monosson's input. She hits it right

on the nose. Licensing is no guaranty of character. I have known cops

who were on the take, men of the cloth who flouted their vow of chastity

and bankers who stole funds from the beneficiaries of the trusts in

their safekeeping.

 

They all had been licensed.

 

Claude Lanselle

CLG Leasing

Los Angeles

323.953-1681 Voice

323-953-1918 Fax

 

+  +   +

 

I could not agree more with Deb Monosson, in her statement that licensing

does not really stop dishonesty. There are crooks everywhere, on both sides.

 

There seems to be a proliferation of brokers arising out of companies, which

have sold or closed. Some very honest and some very unscrupulous (both, the

companies and the brokers-ex employees).

 

These people are used to working for a company, which dictates what they do

and have felt very important expressing to work for a large company. When

the company sells or closes, great numbers of them find themselves hovering

without direction, like a bounced check and, when they cannot immediately

find an "executive" job, suddenly become brokers, by buying a fax machine,

working out of their spare bedroom and calling themselves "presidents" of

some company, which must, of course, have some  names which includes

"funding", "capital", "underwriters", "bankers" or the like, even if they

are just an individual without even a fictitious business name filed.

 

These are the most common first steps to unscrupulous brokers, who get

approved by a finding source, simply because they knew the people from the

time they worked at "the other place".

 

In the course of doing that, they must be quite creative, so as to be able

to generate a quick living at least until they can find a real job and, as

in many cases, such creativeness leads to very intentional omissions of

information, white washing or downright lies, just to be able to keep the

other lies they told their prospective customers just to get the deal. Since

they have knowledge of the industry and its players, they can usually cheat

quite successfully; at least at first and until the funding sources discover

their internal errors in filtering info.

 

I could name a few of them, who have done just what I have depicted above.

 

This, in turn, gets the funding sources so tired of being cheated from so

many sides and by so many bad brokers that they become extremely paranoiac

about what they accept as a broker's credit presentation.

 

Licensing or CLP titles will not ever cure this. Titles only entitle people

to use them to impress customers, in the quest to get the application and to

have the customer think this man has to be good, since he has a good title.

This could equate to the policeman who used his badge to hold up a Seven-11.

 

I have a doctorate degree and have never found it to be of great importance

for anything, other than the fact that I learned what I went to learn. That

piece of paper never gave me a single ounce of additional integrity.

Integrity is something we must a) demonstrate, b) use and c) be very proud

of. Don't just talk about it. Use it!

 

The first rule to keep in mind for both sides is to remember that there's

more to life than just a quick buck. This is a message for those brokers who

take and allow those 10 to 15 points and the funding sources who allow such

deals and then complain about defaults, blaming the brokers. If you offer to

pay so much you can expect garbage, as no educated businessman in his right

mind, who expects to remain in business, should sign for the rates which

arise out of such exorbitant commissions.

 

Self policing and strong messages will, in fact do it better but it won't

happen, until that dividing line created, between funding sources and

brokers, by the very associations is taken down and a common dialogue begins

to clean up the business. I am willing and actually offered to participate

in the committee of one association, but my offers were ignored several

times. Must be that I didn't belong to the click.

 

Conversely, there are funding sources who, as I write, are cheating the very

brokers they eat from in mid stream changes lies about funding, which

doesn't occur for up to two months and those who collect vendors and

customer names, so as to send their own people to solicit their business. I

have proof of those too.

 

In summary, Deborah is right and the solution is elsewhere, not where you're

going.

 

By the way. I came into this business, self employed at it since September,

1978. Yes, this is a real corporation. Not just a name.

 

 

Alfredo R. Vionnet, Pres.

Vionnet & Associates, Inc.

http://www.vionnetlsg.com

(559) 229-4782, Ext 2#

 

+++

 

 

---“Create a Bounty”

 

            I've read with interest the comments on the question of ethics

within our industry.  The is an ethics problem, however I feel it is not as

great as being portrayed.  I feel some people may cry ethics foul when they

just didn't win the deal.  It's always easier to blame something else.

 

            I don't feel it is my responsibility to police the industry.  The

idea of a boycott scares me for many reasons.  First, in my position I have

an opportunity to see both, the broker and the funding source.  Often there

are two different stories regarding the same transaction.  Another reason is

I have never had the kind of information about a lack of ethics I would be

willing to take to court.  I have heard of unethical practices from some

large lease companies operating mostly via telephone.   It is our

responsibility to be ethical and help our clients understand our product

well enough to avoid being stung by an unethical broker or funding source.

Also, in spite of our broker agreements it can be difficult to really know

who originate a lease transaction. 

 

            If you really want to stop unethical practices have all the brokers

contribute to a bounty fund.  When unethical practices are discovered the

fund would be used to pay for prosecution.  Then advertise that we (the

concerned brokers) are cleaning up our industry with this fund - this would

serve notice on unsavory brokers.

 

            One of the many things I've learned about this business over the

years is that we are living by our wits.  That is a blessing and a burden.

It is a burden in that we must do it.  It is a blessing because we are only

responsible to ourselves.  I can't control what brokers do.  I suspect that

we are like a lot of funding sources, in that we choose not to do business

with some brokers - we are not willing say who.  We are also not willing to

say who I do business with.  With the possibility of a boycott that

information will become a trade secret for all funding sources.

 

Archie Julian

JulianA@ExchangeBank.com

 

+++

  -------------------------------------------------------------------------------------------------- Congratulations To ...

 

     Our "Free Attendee Registration" Winners

 

     Bob Drees | MRI Sales Consultants of Northridge

     Scott Bronstein | Experian

     Debbie Lopez | Bell & Howell Financial Services

     Gary Shivers | Marlin Leasing Corp.

     Shari L. Lipski | Edwin C. Sigel, Ltd.

     Paul Lechner | KPMG Consulting, Inc.

     Linda Lundergan | SecureLease

     Dave Lakes | Dave Lakes & Associates

     Arlene Sena | Compaq Financial Services

     Shelley Pittman | SAP America

     Bob Rodi | LeaseNOW, Inc.

     Aziz Khan | Heller Leasing Services

     John O. Steindorf | Allegiant Partners/Interfund

     Rudy Trebels | IFC Credit Corp.

     Alan Zeppenfeld | NCR Corporation

     Charlie Bancroft | Bancroft Leasing

     Frank J. Krueger | American Standard Leasing Inc.

     James L. Jennings | Collateral Specialists Inc.

     Jim Ralston - Commonwealth Capital Leasing

     David A. Moya | Information Management Consultants, Inc.

 

The Financial Resource Conference | Overview

August 28-30, 2001

The Ritz-Carlton, Buckhead

Atlanta, GA

 

     You Can Register To Win In Two Clicks

     For Details - http://www.lessors.com

 

### ############ ###########

 

 

 

Advisa, McCue Systems Offer Like-Kind Exchange Application

 

Advisa, creators of business analytic applications, and McCue Systems, providers of LeasePak, announce an agreement in which Advisa's sophisticated like-kind exchange application, aLKEx, will be integrated with McCue System's full lifecycle lease management system. This marks the first time that an asset tracking application is fully integrated into a lease management system, allowing for rapid system deployment. The aLKEx application enables leasing companies to create new revenue streams and receive never-before-realized tax benefits.

 

"McCue's leasing customers understand that smart data management benefits their organizations in several ways, one of which is tracking assets in real time to realize tax benefits," said John McCue, CEO of McCue Systems. "From our research, Advisa's aLKEx is the most technologically advanced like-kind exchange application available. Its open systems architecture offers McCue a way to extend LeasePak's strategy and reporting tools with minimum impact on system resources."

 

Advisa's aLKEx monitors the value of an asset pool and exchanges newer assets of the same value for those terminated from the pool. Leasing companies receive a tax benefit as the asset pool depreciates in value. Additionally, leasing companies can avoid capital gains tax penalties because assets that drop out of the pool are immediately replaced within allotted timeframes. Advisa's lake application leverages data already in LeasePak, so aLKEx benefits can be quickly realized.

 

"Advisa is pleased to work with McCue Systems to offer the first-ever integrated like-kind exchange application that can function with a lease management system," said Al Hassabo, president and CEO of Advisa. "LeasePak, with the aLKEx module, allows companies in the automotive and equipment leasing industries to defer taxable gains and increase revenue by facilitating the exchange of like-kind assets, which is exceedingly challenging to track manually."

For more information about LeasePak and the aLKEx module, visit www.mccue.com.

 

#### ############## ################ ####################

 

Heller Financial, Inc. Declares Dividends for Class A and B Common Stocks And For Series C and D Preferred Stocks

 

CHICAGO, July 17 -- Heller Financial, Inc. (NYSE: HF) has declared dividends on its two classes of common stock, Class A Common Stock (which was issued in May, 1998 and is held publicly) and Class B (all of which is held of record by Fuji America Holdings, Inc.), and on two of the Company's preferred stocks, Fixed Rate Noncumulative Perpetual Senior Preferred Stock, Series C, and Fixed Rate Noncumulative Perpetual Senior Preferred Stock, Series D.

The Company declared a quarterly dividend of $0.10 on each outstanding share of its Class A Common Stock and Class B Common Stock, payable on August 15, 2001 to the holders of record thereof on July 31, 2001. In total, approximately 97 million shares of Class A and Class B common stock are outstanding.

The Company declared a quarterly dividend of $1.67175 on each share of the 1,500,000 outstanding shares of the Fixed Rate Noncumulative Perpetual Senior Preferred Stock, Series C, payable on August 15, 2001 to the holders of record thereof on July 31, 2001.

The Company declared a quarterly dividend of $1.7375 on each share of the 1,250,000 outstanding shares of the Fixed Rate Noncumulative Perpetual Senior Preferred Stock, Series D, payable on August 15, 2001 to the holders of record thereof on July 31, 2001.

Heller Financial, Inc., is a worldwide commercial finance company providing a broad range of sophisticated, collateralized financing solutions. With nearly $20 billion in total assets, Heller offers equipment financing and leasing, sales finance programs, collateral and cash flow-based financing, financing for healthcare companies and financing for commercial real estate. The company also offers trade finance, factoring, asset-based lending, leasing and vendor finance products and programs to clients in Europe, Asia and Latin America. Heller's common stock is listed as "HF" on the New York and Chicago Stock Exchanges. Heller can be found on the World Wide Web at http://www.hellerfinancial.com .

Sites of Reference:

http://www.hellerfinancial.com

CONTACT:

Linda L. Anderson

Heller Financial

Phone Number: 312-441-7034

 

################################################################

 

Policy Statement

 

Policy Statement---Nothing is sent out that is not "fair." Always unbiased reporting. Fairness always. If it is questionable, we will ask the writer's permission to quote them. We will print information without attribution, but feel as long as we do not name the person who sent it, we can use the information. Any information we think is suspicious, we try to have if substantiated first by at least two reliable people.

 

 We will not purposely send out "negative" news. We prefer "positive" news. We have no "axe" to grind or are not paid or seek or accept any

remuneration for product or promotion. We do not spam anyone. To be added to the mailing list, you must request it. We do not send anything about our company or personal e-mail or jokes to the leasing news list. We do not share our mailing list with anyone.

 

We try not to send more than one report a day, if at that, unless an "alert." We follow Internet Netiquette at all times. Our sole purpose is to provide

communication to improve our profession.

 

 We reserve the right to deny sending the newsletter when requested. We reserve the right to edit or delete an opinion that is not in good taste or is outright derogatory.

 

Leasingnews.org