June 12 , 2001



††† Steve Wheeler says, “Bye-Bye, Baby” to Equipment Leasing.”

††††† American Express Zero Percent 12 Month Lease

††††††††† Electronics Signatures -----75 cents each

†††††††††††††††† Where is Fred Van Etten?†††††

Sunrise International Leasing Corp. Reports Strong Financial Results

†††††††††††††††††† Microsoft XP to Supply Telephone in Every Computer



. “ I don't know what I would do with out his expertise.”

†††††††††††††††††††††† – Theresa Kabot; Kabot Commercial Leasing, Seattle, WA.

†††† Whatever Happened to....This Thursday’s Feature Article





†† Steve Wheeler says, “ Bye-Bye, Baby” to Equipment Leasing


††††††††††† Sean Wheeler Leaves the Leasing Business for “Wet Pets”


Dear Kit:


Steve Ballard who came to us in February of this year has taken over control

ofOne Lease, and the Franchise Group.Steve spent his last 6 years in the

Operations / Finance department with Michael's Floral the fastest growing

retail store chain in the West.We feel he brings a solid financial

background to the company which One Lease is in need of at this time.


As One Lease has grown several issues have needed special attention that one leasing

professional could not handle.Sean Wheeler felt it was time to turn the

company over to a highly qualified individual that truly could propel One

Lease to the next level and beyond.Steve will take a much more active

approach to the company staring with a booth and the UAEL annual conference

in October.


Steve officially takes over July 1st. Sean Wheeler and his wife will be moving to the East coast in the next few months to expand there 3 store chain of Marine Pet Stores called “Wet Pets.”


We wish him all the luck in the future!


Marilyn Delerio

One Lease Corporation

One Lease Franchise Corporation






Dear Kit,


Yes, it is true I am leaving the leasing industry.


Steve Ballard has taken over as CEO of One Lease Corp.This will go into

effect on July 1st.I really think Steve will bring a strong Customer

Service platform back to One Lease.


I think if One Lease has a knock it'sthat we can be slow at times.All issues aside we have always taken care ofour approved brokers.And we have always been broker driven from the verybeginning.many felt we were a super broker of some kind.That is anincorrect statement we are a funder with our own money.


We are a fundingsource member of the UAEL, & EAEL and will have a booth at the Annual UAELconference in Texas this year.I really think that Steve and his new team

with propel One Lease into the future as a major source in the industry.


With funding sources closing at a record pace One Lease has been a

consistence source for the industry.


Thank you


Sean Wheeler, CLP

1 Lease


( It is my impression One Lease Consultants sets up individuals in the leasing business,

a franchise type operation, with procedures, manuals, and support, and treats the leasing

business as a “retail” business or franchise with backing from the franchiser.

Their website is “under development” .We hope to get more information about this

fascinating approach to leasing.editor )


Dear Ex SDI Employees:


I am not an attorney but I would sure think some legal action is warranted

based on the Daniels actions. At least some reporting to the State Board of

Equalization, they love this kind of stuff. The Daniels will try to say that

it was a corporation that did these terrible things to you, but any good

attorney can get a judge to pierce the corporate veil if even half the

things you say are true; it appears to me they are acting out of self

interest, not the interest of the business or its best asset, you.


Go for it folks, you do not make any money sitting on your hands.


Name withheld




Thank you for your great news letter.The information it provides has been invaluable in recent months.You saved us a big hit with Bancorp Financial.We did allot of work with them, but thanks to you we slowed things down, and avoided the hassle and pain we had with United, and JDR.


††† If you are going forward with your classified section, please attach the following add for a position we currently have to fill that may help ex-SDI employees. Thank you again.


††† Quest Financial Corporation in Costa Mesa, CA is currently recruiting experienced leasing sales people in the Southern California area.Quest Financial is a unique leasing company servicing the small ticket market.Quest offers a friendly work environment with a very competitive compensation package.Interested qualified leasing professionals may either apply online at http://www.questfinancial.com, or contact Eric Bryant at:


†† †Quest Financial Corporation

††† 3151 Airway Ave., Suite H-3

††† Costa Mesa, CA 92626

††† 714-918-5115

††† ericb@questfinancial.com




††††† ( okay, this is a plug. Classified ad is still under development; hopefully by the end of this month. We hope to have a place for both employers and employees to come

for all types of positions.This was not our intention, but readers have requested

it, so we will give it a try.


I am leaving soon for Kona, the big island, fora wedding of Sue’s eldest daughter,

the doctor ( intern at UofTexas,Houston ), who is marrying an attorney, andt have a new laptop, Sony 1gig cpu, top of the line, and hopefully can continue leasing news, and maybe work on some projects. editor )



Where is Fred Van Etten?


A few weeks ago you asked if anyone knew what happened to Fred Van Etten

after the First Sierra disaster. I an happy to say that Fred is alive and

well as President of Northwest Bank and Redstone Bank in Houston. Fred was

one of many that tried to minimize the Depping/Sabel destruction of First

Sierra and it is encouraging to see one of the good guys rise to the top



Charlie Lester





-United Association of Equipment Leasing Washington Region Presents:


Anatomy of a Lease 101


Friday, June 22, 2001

8:00am - 4:00pm


701 N 34th Street * Seattle, WA98117

$99.00 - UAEL Members

$119.00 - Non UAEL Members


History of LeasingThis segment covers in brief the evolution of leasing from 'captives' to modern day leasing. A brief discussion of the classification of leases from the perspective ofaccountants,theIRS and the law will be included.


Credit We'll overview this process to give some insight into the role and purpose of credit, the elements of small, medium and large ticket credit decisions, and credit enhancements.


DocumentationIncluded in this discussion will be an overview of 12 lease documents and their purpose. A short discussion will also cover sales, property and income taxes.


Funding††† Included in this topic are discussions regarding Sources of financing for the Broker, Lessor and funder,a 'due diligence' checklist, andan introductory discussion of discounts, reserves and holdbacks.


CollectionsThis topic includes introductory discussions of the signs of delinquency, progression of the collection process and remedies. We'll also explore types of repossession and the concept of the commercially reasonable sale.




Sign Me Up for Anatomy of a Lease 101 on Friday, June 22, 2001!


UAEL Member @ $99.00††††††† ††††††††††††††††††††††† ††††††††††† Non UAEL Member @ $119.00††††† †††††††††††††††††††††††


Joanie Dalton - Managing Director

UAEL - United Association of Equipment Leasing

520 Third Street, #201

Oakland, CA94607

(510) 444-9235 x27

(510) 444-1346 fax






Bring Back Sierra Cities?????


American Express - Deceptive Sales Practices??????


It was reported on the National Association of Equipment Leasing Listserv

that Amex is offering a 12 month "Zero Interest Lease."


The lease requires first and last payment and a 10% "put."


A representative from Amex was quoted as calling this a "true lease" and

stating that the payments could be expensed. (I assume that there may also

be a doc fee, interim rental and potential extended rent payments as well.)


Lets be clear:


1.†††††††† This is not "Zero Interest." The rate is 22.54% assuming no doc fee or

††††††††††††††† interim rent.

2.†††††††† No! You could not write off the lease payments even if it was a "true"

†††††††††††††† lease. The term is way too short.

3.†††††††† This is NOT a "true lease" in any way, shape, or form. It is a lease

††††††††††††† "intended as security." It is a loan.


Is Amex indulging in deceptive sales practices and dispensing (incorrect)

tax advice without a license? Is Amex senior management aware of these

practices? Are they breaking any laws? Is it fraud? Is it ethical?


How do you compete with these tactics? Is it time to regulate our industry?


Doug Delack

Alternative Finance, Inc.



( Doesn’t meet FASB rules, for sure. And I bet it has one of the clauses that the lessor must benotified 90 or 180 days in advance of the due date, or the lessor has the option

†† to renew the lease for another consecutive twelve months. editor )




Electronics Signatures -----75 cents each




Electronic signatures for applications and documents. 50 cents signature and 25 cents

a message, total of 75 cents each. No sign up fees or monthly charge.


Free trial available. Go to www.yozons.comfor the home page.

Or call Robert Kommer at 206-463-9657


By the end of the year we will have a completely paperless solution - app through documentation - for small ticket leasing.


Please get in touch if I can answer any questions or be of help in any way. I hope that our show and tell via telephone and the Internet this morning allowed you to see how Yozons offers a cost effective means for obtaining signatures and the potential for streamlining small ticket leasing - increasing revenues for all players and wringing costs out of the leasing process.




Robert Kommer

VP Marketing/Sales

Yozons†† www.yozons.com




Yozons Introduces Signed & Secured‘

A business communications tool that provides security, tracking and e-signatures

Yozons presents FTC/ComplyT


An e-signature solution that allows credit grantors to use email for obtaining written permission from principals and guarantors to pull consumer credit reports


######################†† ###################### #################


Seattle, WA -- FTC/ComplyT makes use of the functionality of Signed & Secured‘, Yozons‘ Inc.'s newest nationwide service, to provide a solution tailored to the leasing and business finance industries. FTC/ComplyT allows credit grantors to use email to acquire the required authorizations for pulling consumer credit reports of principals and guarantors. FTC/ComplyT also allows credit grantors to use email to easily meet the requirements for written permission set by consumer credit agencies in order to comply with the Gramm-Leach-Bliley Act.


Signed & Secured offers a cost effective solution for securely sending data and documents over the Internet and for obtaining legally recognized electronic signatures. Flexible deployment options include installation as an appliance, a managed service on a dedicated or shared server, or as a zero footprint service that is up and running in minutes.Programming interfaces further extend and automate existing business applications.


"Yozons has taken the critical elements from PKI and combined them into a usable and reasonably priced service that is immediately accessible to everyone," said Yozons' President/CEO David Wall. "Simply compose a message or attach a document and our service will present the document or message for signing to anybody with an email address. Yozons makes it easier for everyone to do business by allowing customers, vendors and associates to sign online in a manner that mirrors present business practices."


Ease of adoption is a major benefit. There is nothing to download or install. No encryption keys need be exchanged or certificates purchased and managed. Resembling email, no training is required.


All services offer comprehensive security.Industry standard encryption technologies are used to safeguard all data during transactions and while archived. The sender is provided with a complete audit trail of all messages sent with time stamps, detailed tracking that includes records of when messages are received, read and signed.


Kirkland-based Yozons was founded in Washington State in August of 2000 to enable businesses to take advantage of the E-sign Act that was recently enacted by Congress. Unlike competitors, Yozons allows for the easy adoption of e-signatures by offering a convenient and inexpensive service. Applicable across numerous industries, comprehensive solutions for the business finance and leasing industries will be available in August. Future releases will offer customer acquisition solutions and enable companies to integrate customer touch points - physical location, web, email, call centers and kiosk - for interactions that require signatures on documents.


For more information on Yozons or Signed & Secured, please visit our web site at www.yozons.com or contact Robert Kommer, VP Sales/Marketing, 206.463.9657, Robert@yozons.com



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Salesman Pay Survey


Readers have inquired if we published the results. We did on May 29th



We also put it on line in our “articles” section: http://www.leasingnews.org/articles.doc/newsletter6.htm



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Sunrise International Leasing Corp. Reports Strong Financial Results; Excess Borrowing Capacity to Allow Expansion of Lease Finance Programs

GOLDEN VALLEY, Minn., June 11 -- Sunrise International Leasing Corporation, a wholly owned subsidiary of privately held King Capital Corp., today announced financial results for the twelve-month period ended December 31, 2000, and the three-month period ended March 31, 2001.

††† For the year ended December 31, 2000, revenue increased 79 percent to $160 million compared to $89 million for the previous year, and net income was $9.4 million compared to $4.4 million. For the first quarter ended March 31, 2001, revenue increased 56 percent to $51 million compared to $33 million for the previous year, and net income was $3.4 million compared to $1.4 million.

††† Sunrise International Leasing Corporation was a public entity until it was merged into The King Management Corporation in June of 2000. Following the merger, the resultant private company was renamed Sunrise International Leasing Corporation. All results for the prior periods are pro-forma and assume that the merger was completed at the beginning of calendar 2000.

††† For the year and first quarter, interest expenses increased due to increased borrowing levels and provisions for losses increased to cover exposures to known problems and to maintain reserves to cover anticipated future portfolio losses. Recent interest rate decreases will have a favorable effect on company profitability as the costs of the company's borrowings decrease and lease rates continue at fixed levels.

††† During the past year, there have been reports of loan defaults, bankruptcies and performance problems with a number of very large leasing companies. Consequently, banks and other funding sources substantially reduced or slowed down their commitments to fund the leasing industry. This initially negatively impacted the company's ability to obtain funding. Despite experiencing a severe reduction in the availability of funds to purchase equipment earlier in the year, the company was ultimately able to accumulate $500,000,000 in both formal and informal lines of credit. These lines of credit are being used to service the leasing requirements of the company's three major vendor program leasing partners, Sun Microsystems Finance, Cisco Capital Corporation and G.E. Capital.

††† "With the slowdown in the economy, the company now has excess borrowing capacity and is actively seeking additional vendor program leasing partners," said Peter King, chief executive officer of King Capital.

"We also plan to publish quarterly results and report on important events in order to maintain its visibility in the capital markets and the leasing industry, both of which are essential to the conduct of its business."

††† King Capital Corporation, established in 1975 and based in Golden Valley, Minn., offers a wide range of leasing options to manufacturers, distributors and resellers through its primary subsidiary, Sunrise International Leasing Corporation and high availability software through H.A. Technical Solutions,


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Sunday Sermon—Let Us Know if You Do Not Want to Receive it----



Microsoft Is Ready to Supply a Phone in Every Computer\


By JOHN MARKOFF , New York Times


Microsoft's new Windows XP operating system for PC's goes further than ever before in commandeering the capabilities of the most widely used desktop tool in America: the telephone.


The ability to use the personal computer as an "intelligent" phone has been viewed largely as a curiosity by the computer and telecommunications industries, not to mention by consumers. Internet telephony has mostly not been high quality, and conversations are frequently plagued with static and delays. It has also been difficult for computer telephone callers to find each other without inconvenient and sometimes costly third-party directory services.


That is likely to change rapidly as Microsoft's new software prepares to exploit the next generation of the Internet, offering computer-based telephony with better-quality voice than before and with more powerful features than the traditional phone.

And that has some high-technology executives wondering whether the telephone companies are going to be the next target in Microsoft's sights.



Microsoft is preparing to include both high-quality telephone and directory features in Windows XP, which is scheduled to be commercially available on Oct. 25.

Weaving improved versions of features Microsoft already offers, like online video meeting software and Internet voice chat, and integrating them with a more sophisticated version of the company's identity system, known as Passport, Microsoft asserts that it will transform the very nature of the telephone.


In the future, not only will Internet telephone calls be higher quality than on today's telephone network, but the personal computer will offer new features like the ability to tell whether the person being called is at her desktop computer before the call is made and "follow-me" capabilities that let the network track a person's location whether she is at the desk, at home or reachable by cellular phone.


One favorite voice and computer capability described by Microsoft's chairman, William H. Gates, is the ability to call a restaurant and have its menu pop up on a computer screen during the call.


Moreover, Internet telephony may offer Microsoft powerful new revenue potential from subscription services, like Caller ID and voice mail, in which it will begin to compete with traditional telecommunications companies. The company has said that it is trying to generate new subscription revenue from all of its software products as part of its new Internet strategy, known as .Net.


That new power has some of the company's competitors worrying that Microsoft is planning to steal revenue from the telecommunications industry in the same way it undermined competitors like Netscape in the software business — by adding free features to its operating system.


If telephone calling becomes a standard free feature of the Microsoft operating system, they say, it could bring huge changes to the telecommunications landscape.

"Microsoft is going to suck the value out of the telecommunications companies," said David Isenberg, a former Bell Laboratories researcher who has written about the impact of the Internet on traditional communications networks. "Microsoft is going to do end-to-end Internet telephony, and they're going to do it right."


For longtime experts on the communications and computer industries, Microsoft's move is not a surprise.


"I don't think it's shocking at all," said Reed E. Hundt, a former Federal Communications Commission chairman who is now an adviser on information technology at McKinsey & Company and a member of the board of the Intel Corporation. "It's like predictions of earthquakes: you know it's statistically certain to occur, but it's still kind of rattling when it happens."


Microsoft executives said that the company was discussing the relationship of Windows XP with telecommunications and Internet companies and that it might announce new alliances before it begins its operating system this fall.


"I think it's highly unlikely that we will become a network carrier," said Craig Mundie, Microsoft's senior vice president for advanced strategies. He acknowledged, however, that the company was looking to produce revenue from new telephone-based services. "To the extent that we can add a cool capability, maybe it's possible that we can make it a subscription service."


That is likely to mean that the line between the telephone industry and Microsoft's emerging .Net Internet strategy will be increasingly blurred.


Even if Microsoft does not become a network carrier, it presents a potentially formidable challenge to the regional phone companies.


It is clear that the regional phone companies "wonder the same things the Netscapes have wondered: are they friend or foe?" said Brad Garlinghouse, chief executive of Dialpad Communications, an Internet telephony company in Santa Clara, Calif. "Any time you have a competitor with $20 billion to $30 billion in cash that's a scary proposition."

Currently, to make a call from a PC to a telephone it is necessary to have a subscription with a third- party Internet telephony service like Dialpad or Net2Phone.


But in the future, Microsoft competitors say, the software company will move to rely less on third-party providers and more on Microsoft's own emerging .Net software strategy, known as Hailstorm.


Hailstorm is intended to aggregate a wide range of personal information, including buying habits, calendar and contact information as well as "presence" information. Whether a computer user is in front of the computer and available for calls or traveling in a foreign country is a piece of information that will be held by the company's network, raising privacy and competitive issues.

Industry executives say the telephone companies have until now believed that voice over the Internet was a competitive threat that was in the distance and they are only beginning to awaken to the challenge.


"The phone companies should be increasingly worried," said Andrew J. Kessler, a partner at Velocity Capital Management, a Silicon Valley investment firm.


The phone companies themselves argue that they are very much aware of Microsoft's looming presence, but they argue that it will face obstacles entering their markets.

"I think we've woken up to Microsoft," said David Nagel, AT&T's chief technology officer. "There is an enormous difference between putting a piece of software code in a box and having a working service."


Microsoft's major current competitor in this realm, America Online, has voice features similar to those found in current versions offered by Microsoft, but has yet to announce any plans for an improved and integrated service of the type expected in Windows XP. AOL declined to comment on Microsoft's plans or its own.

For Microsoft, the voice communications system is perhaps one of the best examples of how its legendary persistence can lead to the creation of a formidable capability that has long been dismissed by competitors.


Microsoft has already begun shifting its focus to the personal computer as a hub of home services and entertainment. In recent weeks, ads for Microsoft's MSN online service have focused on the idea of shifting telephone conversations away from the home phone.

In one commercial, a teenager who has had her phone privileges taken away by her mother jokes with a friend about her mother's not being aware that it is possible to have a voice conversation on the PC.


The company began putting voice features in its operating system as long ago as 1996 with its Net Meeting program, with the idea of making voice, video and data collaboration possible. Now it will take that technology and integrate it with its Windows Messenger software and the .Net Passport service, creating a single consistent mechanism for using the computer as a telephone in Windows XP.


"One of the things we were really committed to in Windows XP was to provide an integrated customer support mechanism," Mr. Mundie said. "Once we achieved that, it doesn't matter if you call Microsoft because you have a problem with Office or you call a friend" because all calling will be done in the same way.


Consumer advocates are concerned about the Microsoft voice strategy. They say that both Microsoft and AOL are creating proprietary platforms for new voice services that will limit competition and hurt consumers.


"This is extremely troublesome from the point of view of market competition," said Gene Kimmelman, co-director of Consumers Union's Washington office. "Consumers are not well served by two enormous fortresses. There needs to be more openness rather than less."



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