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May 30, 2001 Headlines--- Wells Fargo to write down $1 billion in venture losses Alan Collier-Jack Winsten E-Mail/SDI Capital and More Where is Ravee Shrinivas???? Positions Open---- Digital Visions/CapitalClick Internet Based Equipment Leasing Bankruptcy Providing Little Relief to Cash-Strapped Companies ( Symptoms to Look For ) #### denotes press release from company --------------------------------------------------------------------------------------------- TotalFunding –SDI Capital Negotiations Stalled It was reported by an inside source that the negotiations for the purchase of SDI Capital assets has ceased. Totalfunding.com president Alan Collier states that is “not correct,” but would make no further comment. Leasing News has learned that Alan Collier also worked at SDI Capital. He told us he did sales as a broker, plus did training. It is reported that several of the Corona America Financial people also worked or brokered to SDI Capital. Totalfunding.com began actual operations in early 2000, hiring leasing industry leaders Dennis Doyon and Steve Warren, among others. They made a big splash at the National Association of Equipment Leasing Brokers Conference in Nashville, Tennessee, and the United Association of Equipment Leasing Conference in San Francisco last year. The original thrust was to have brokers submit vendor accounts, actually giving brokers their own Totalfunding business card and access to salesforce.com software with accounts to call upon. They were to act as a referral service. They were an independent sales force, according to Alan Collier. “ We utilized the broker network to act as our independent sales force to procure vendor relationships, and all business was vendor direct, not re-brokered, but vendor direct, “ Collier said in a telephone interview. “. We paid the brokers and vendors a referral fee, depending, a transaction by transaction case.” Andre Champagne then became sales manager. Andrew Champagne is no longer with the company. Totalfunding also provided a “back office” for brokers. “ We now act as an application service provider to the equipment leasing market today, “ he said. “ As of May 22, with the acquisition of Corona America Financial, we now have our own sales force.” Originally they were doing automatic approvals on line, but funders did not want to participate. Originally business was to come from brokers who attracted vendors with commissions and promotions. The program did not work, according to Alan Collier. They are “basically” not accepting broker business now and do not “re-broker.” There may be an exception from time to time, he explained, but it will be only on a “...case by case basis as this is not our general line of business today.” Leasing News has reported earlier that Corona America Financial president, Jack Winsten did work at SDI Capital, before opening this company about a year ago. It was at this time that SDI Capital announced that it was no longer accepting broker business. We are told he was not in charge of the broker “division,” but with direct sales and vendor business. He sent Leasing News the following e-mail: “I want to set the record straight. During my employ at SDI Capital, I was involved in the lessee / vendor part of the business as an sales manager and rep. I never was involved with broker business. Since forming Corona America Financial in 1999, lessee / vendor business has been my focus. The merger with TotalFunding.com has NOT changed that focus. We are and will be working with lessees and vendors. TotalFunding.com has enabled us to better serve the vendor market by providing the vendor with a faster way to enable us to fund their transactions. The benefits to the vendor is multifold. Please see the attached letter that was sent to our funding sources. It should help clarify the benefit of the CAF/TFC merger.” Jack Winsten TotalFunding.com / Corona America Financial 866-737-6051 (toll free) 909-737-6052 (fax) ( Alan Collier also sent us an e-mail with the same letter attached, which follows his e-mail message to LeasingNews ) “In
the past, we utilized the broker
network to act as our independent
sales force
to procure vendor relationships,
and our business was vendor
direct. We paid the brokers and vendors a referral fee, on a case by case
basis. “From
October 2000 to May 22nd, 2001
we have acted solely as an application service
provider to the equipment leasing
and finance industry.
On May 22nd,
2001 we merged with Corona America
Financial.
Below is a copy of the letter
we sent our funding sources
explaining the merger.” Alan
Collier CEO,
TotalFunding acollier@totalfunding.com 818-889-7979 5655
Lindero Canyon Road, Suite 702 Westlake
Village, CA 91362 www.totalfunding.com "Your
Total Funding Solution" ============================= This
message may contain confidential
and/or privileged information.
If you are
not the addressee or authorized
to receive this for the addressee,
you must
not use, copy, disclose or take
any action based on this message
or any information
herein. If you have received
this message in error, please advise
the sender immediately by reply
e-mail and delete this message.
Thank you
for your cooperation. May
23, 2001 Dear, Thank
you for the consideration of
our broker application. As you
know, we have
already developed relationship
with you and other funding sources
as Corona
America Financial; however,
it is now necessary to share
with you the good
news of our recent merging with
TotalFunding.com. TotalFunding.com
has not originated any equipment
leasing transactions as of October
2000 and has solely acted as
an application service provider
to the commercial
finance and equipment leasing
industry. However, TotalFunding.com has
concentrated its focus towards
vendor and end-user business
as part of the
growth between itself and Corona
America Financial. This relationship allows
for an advanced, on-line application
system that is geared towards, and
designed to empower vendors.
These on-line, technical capacities
are accompanied
by the highly charged sales
and underwriting team of Corona America
Financial—proving to be
a true “brick and click”
relationship. Corona
America Financial is now a wholly
owned subsidiary of TotalFunding.com.
We hope to continue business
with you and to pass on to you
the growth in our business anticipated
in the upcoming year. Thank
you, Kim
Province Vice
President Of Operations Employee Rights & SDI Capital All Employees Should be Aware of Their Rights, and as many of our
readers have
written in the past for brokers
to send their business to well-known
and reputable
companies, the same should apply
to employees.
Employees should
also interview and investigate
the company, as employers do
for prospective
employees. editor. For
all SDI Capital employees Fair
Warning to anyone who thought
they'd get their 401K money.
It seems that the Daniels have
not paid May's distribution
deposits to AUL. In a nutshell,
you have been burned once more.
According to an employee at
AUL, it will take some time
for them to research where the
money is, and who the trustee
is to close out the accounts.
There is no way for AUL to contact
the trustee, unless they are
able to get hold of the Daniels.
If you have any questions, you
can call AUL at 1(800) 249-6269.
Good Luck Name
Withheld --------------------------------------------------------------------------------------------- Where is Ravee Shrinivas???? Ravee Shrinivas 64-30 231st St. Bayside, NY 11361 (718)631-0279 or maybe here: 211-26 34th road, Bayside, NY 11361 Phone #: 917-607-1900 or 917-841-2727 fax #: 718-631-0279 ^^^^ Thank you for helping out my former customer (they recently changed ownership and my relationship was really with the former Owner) Total Media Group, in their search for their rep. at Terminal Marketing. However I wish their CFO had had more sense, and not mentioned me in his e-mail. Last thing I need is to be walking down the street and "whacked" by some guy who doesn't really want to be found. Anyway, you can go ahead and print this.
-- Bob Homans/Norden Capital Positions Open We continue to work on our classified ad section, but in the meantime are trying to help out employees recently let go. So we continue to print: IFG Funding, Inc. is a small-mid ticket equipment lease broker in Ventura County California and we're looking for three salespeople. They can view our site at www.ifgfunding.com. or call Jim at 800-257-6659. ^^^^^ We are a Florida based Leasing Firm in business over 20 years and are interested in expanding our sales force. We are opened mined to your needs. Please contact me via phone or e-mail to discuss an opportunity to join our firm. Bonnie Dalsimer LEASE WORLD CORPORATION leaseten@bellsouth.net 800-532-733 Sales Consultants of Northridge, in Atlanta, works exclusively in the equipment leasing and finance industry. Our account executives have over 40 years of experience between them in the leasing industry and bring added value both to candidates and employers based on the experience of having been there. Specifically, Bob Drees has held positions in operations, sales, marketing and general management, with product experience in vendor programs, municipal, federal, software and operating leases. He has worked for a diverse base of major companies such as Chase Manhattan Leasing, GE Capital, Heller Financial, CIT and Dell Financial Services, and he brings those experiences together in providing effective and efficient solutions for our clients. When you need a coach working on your behalf, you can do no better than Bob. Specifically, we have openings for sales/business development people in the vendor wholesale, vendor retail, telecommunications and IT leasing arenas. Additionally, we are looking for credit and other operations people in most parts of the country. If you have a skill set, please call or forward your resume to in word to: Bob Drees Senior Executive Recruiter Sales Consultants of Northridge 8200 Roberts Drive; Suite 103 Atlanta, GA 30350 770/668-0000 x15 866/901-2345 x15 bdrees@scnorthridge.com ^^^^^^ Management Recruiters of Melbourne, Inc., established in 1987, has received the President's Club Award from Management Recruiters International for 1994, 1995, and 1996, placing us in the top 25% of all MRI offices. In 1997 and 1998 Management Recruiters of Melbourne, Inc received the MRI President's Gold Club Recognition, placing us in the top 10% of all MRI offices. In 1999 and 2000 Management Recruiters of Melbourne, Inc received the Prestigious MRI President's Platinum Club Recognition, placing us in the top 5% of the offices in the nation in the MRI organization. Our Equipment Leasing team specializes in finding top talent in the equipment leasing industry only, for our client companies while enhancing the careers of our candidates. We have special Broker programs that help smaller companies build profitable Sales teams. Try us, you'll like us! We are a no-nonsense recruiting firm. Regards, Fred St Laurent Management Recruiters of Melbourne, FL Inc. A division of Management Recruiters International 134th Fifth Ave. Suite 208 Indialantic, FL 32903 321-951-7644 ext 3123 321-951-4235 Fax fred@mrirecruiter.com The company I work for has been a member of ELA for some time. Just recently I convinced the owner to allow me to join UAEL. ( I have set my sites on NAELB and EAEL next year...) My understanding is that we will be the first and only Recruiter in UAEL, is that true? I have developed a "Broker Program" that allows smaller firms to expand their sales force, without paying a large recruiting fee up front. I wanted you to know that I enjoy your newsletter immensely. I am a big fan of yours. Fred St Laurent Management Recruiters of Melbourne, FL Inc. A division of Management Recruiters International 134th Fifth Ave. Suite 208 Indialantic, FL 32903 321-951-7644 ext 3123 321-951-4235 Fax fred@mrirecruiter.com ( yes, according to Bill Grohe, this is true. editor ) ^^^^^ Our day is not the same without your excellent work. Your time & energy is greatly appreciated. Thanks, Ted Clark ( Thank you. Most of our readers have been referred by other readers. Almost all our news comes from insiders, from our readers, and we do print other newspaper stories and press releases. Recently we have been abbrievating them here, but putting the full press release on line. Readers have told us to make our newsletter shorter, and this hopefully is a good compromise. If you are interested in the full press release, you can go to; --------------------------------------------------------------------------------------------- Wells Fargo to write down $1 billion in venture losses BY MATT MARSHALL San Jose Mercury News San Francisco's Wells Fargo bank disclosed Wednesday a $1 billion loss on its venture capital portfolio in one of a string of developments that indicate the fallout in the venture world continues. Also Wednesday, a partner at high-profile Crosspoint Venture Partners, Bob Lisbonne, said he was leaving that firm, because of its slowing investment pace, for rival firm Matrix Partners. Such moves are highly unusual in the valley. Separately, the CEO of troubled venture firm Comdisco Ventures resigned. Wells Fargo's write-down stood out for its size. The fourth-largest U.S. bank said it expects to take a $1.13 billion second-quarter charge, $1.05 billion of which results from write-downs due to losses in public and private stock in the bank's venture capital portfolio, according to the company. Though the company did not give many details, it listed two examples of the write-offs. First, it invested in Cerent, which was later acquired in November 1999 by Cisco Systems, the largest maker of computer-networking equipment. Wells Fargo's shares in Cerent became Cisco shares, which have fallen 66 percent in a year. Second, Wells Fargo invested in Siara Systems, which was acquired by Redback Networks in March. Shares of Redback, a maker of telephone and fiber-optic networking equipment, have fallen 85 percent during the same period. Ross Kari, Wells Fargo's chief financial officer, said in a statement that the company doesn't see much ``sense'' in holding the positions in Cisco or Redback any longer. ``In hindsight, we did not liquidate them quickly enough,'' he said. One of the first omens of tough times for VCs came in November, when Crosspoint, a 30-year-old Woodside firm, made the unprecedented move of returning a $1 billion fund to its investors because of bad market conditions. At the time, the company said the move was a unanimous decision. But Lisbonne apparently wasn't happy with the decision. ``Whether or not it was the best thing for the firm, it wasn't the best thing for my career interest,'' he said Wednesday, as he announced his move to Matrix, a firm rated among the top-three VCs last month by Red Herring. Lisbonne, who cut his teeth as an executive at firms like Pacific Coast Software, Claris, Collabra and Netscape, was the youngest partner at Crosspoint. Lisbonne, 38, has only been a venture capitalist for two years. ``My desire is to be a very active investor for many years to come. My thought was I could best do that in a firm that is in a more active fundraising mode.'' He joined Matrix, he said, because of its recent raising of a $1 billion fund, its strong reputation in early stage investing, and a similar investing philosophy to that of Crosspoint. Separately, James Labe, the CEO of Comdisco Ventures, resigned as the troubled venture capital unit apparently winds down, VentureWire reported Wednesday. His resignation comes as the parent technology-services firm, Comdisco, is undergoing a large restructuring, including layoffs of as much as 10 percent of its North American workforce. Comdisco's venture unit began as a lease-financing arm but moved heavily into venture capital investing in recent years. Comdisco Venture portfolio companies include Everypath, a San Jose company that provides a mobile application platform, and Homes.com, a Menlo Park provider of marketing applications for real estate companies that filed Chapter 11 in March. ### ############### ################## ################### Digital Visions and CapitalClick, Inc. Sign Strategic Marketing Agreement; Enriches The Fee Income For DVI Banc Mall Customers Through Internet Based Equipment Leasing
MINNEAPOLIS--Digital Visions, Inc. of Minneapolis, a division of Netzee, Inc., Atlanta, Georgia, today announced that CapitalClick, Inc., Columbus Georgia has signed a strategic marketing agreement to provide equipment leasing and financing through the Banc Mall(TM) to Digital Visions bank clients. CapitalClick provides leasing for all types of office and business equipment including: computers, telephone systems, construction equipment, fleet vehicles, etc. for small business clients of the bank. "Many mid to large size banks have their own leasing group but do not typically bother with leasing under a certain dollar amount and the majority of community banks do not have a leasing group at all. Larger leasing firms are not attractive to the banks as they attempt to remove the client relationship from the bank and sell them other financial services. CapitalClick does not offer any other investing, lending, or banking services thus removing the threat to the bank customer relationship," stated Jim Doster president of CapitalClick. "If the bank has their own leasing group we will contract with the bank to limit our relationship to the size of leases they do not want to handle within their own organization," added Jim. "DVI is pleased to have a Banc Mall service partner like CapitalClick. Their Internet based service is a complementary value added product for the Banc Mall that does not compete with our bank clients' business models," stated Michael Murphy president of Digital Visions. CapitalClick has established relationships with over 20 funding sources but also gives each bank the option to fund leases resulting in increased loan revenues for the bank and increased control over their customer relationships. About Netzee Netzee provides financial institutions with an integrated retail suite of Internet-based products and services, including full-service Internet banking, bill payment, and cash management. Netzee's Digital Visions division provides over 1,300 financial institutions with an integrated wholesale suite of products and services, including portfolio accounting, risk analysis and financial information tools. The company's stock is traded on the Nasdaq National Market under the symbol "NETZD." Netzee can be found on the Internet at www.Netzee.com. |