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Kit
Menkin’s Leasing News
www.leasingnews.org Monday,
June 3, 2002 Accurate,
fair and unbiased news for the equipment Leasing Industry
Headlines---- ELA Report: New Biz Increased 4% 1st Q 2001 to 1st Q 2002
Economic Production Best in 19 Years Tyco Chief Said to Be Focus of Sales Tax Investigation CIT Observations from Sage Lowell Sims Only Eight AAA Companies Compared to 60 in 1979 (Ron Caruso on HSBC and CIT) Economic Indicators Expected This Week Secrets for improving credit score revealed—Anne Perry Seismiq, Inc. Nominated For eLNA Web Award
Comark Capital Selects Isis Leasing System eMarket Capital Releases Latest Version of Trinity ###
Denotes Press Release
Leasing News has thirty “Help Wanted” in our Classified
Ads http://65.209.205.32/LeasingNews/JobPostings.htm --------------------------------------------------------------------------------------------------------- ### ########################### ######################### Performance Indicators Report Reveals Continued Growth in the Equipment Leasing and Finance Industry New Business Volume Increased 4 Percent from First Quarter 2001 to First Quarter 2002 http://www.leasingnews.org/articles.doc/pirq1_02.htm ARLINGTON, Va. - - The Equipment Leasing Association's (ELA) first quarter 2002 Performance Indicators Report (PIR) reveals an increase in new business volume of 4 percent since the first quarter of 2001. This is in comparison to the first quarter economic growth rate of 5.6 percent reported by the Department of Commerce. The total net portfolio for the key equipment lessors increased nearly 5 percent compared to the first quarter 2001. In contrast, the Commerce Department reported that business spending on the purchase of new industrial equipment dropped 8.2 percent in the first quarter of 2002. "Growth in new business volume indicates strong demand for the lease product across many end-user sectors," noted Ralph Petta, ELA's vice president of industry services. ELA's quarterly PIR tracks the performance of prominent leasing organizations in six key areas: total net portfolio, total new business volume, average losses, credit approval ratio, total number of employees and delinquencies. ELA surveys approximately 20 major leasing companies on a quarterly basis, affording trend analysis across all the performance areas. First quarter PIR highlights include: * Total number of employees decreased almost 4 percent from first quarter 2001 * Credit approval ratios have increased 4 percent since first quarter 2001 * Average losses have decreased 30 percent since fourth quarter 2001 * Delinquencies remain stable with a slight decline in current receivables since first quarter 2001 The PIR study is conducted quarterly by ELA, which provides a variety of data, including customized market analyses, to ELA members and organizations. http://www.leasingnews.org/articles.doc/pirq1_02.htm ( This is an Excel spreadsheet. Copy and paste into your browser. If you have difficulty, a tip may be to open your Excel program up first, although it depends on the browser you are utilizing.editor) Organized in 1961, the Equipment Leasing Association (ELA) is a non-profit association representing companies involved in the dynamic equipment leasing and finance industry. ELA's mission is to promote the leasing industry as a major source of funds for capital investment in the United States and abroad. ELA maintains an informational portal for financial decision-makers at www.leaseassistant.org. Headquartered in Arlington, Va., ELA has more than 850 member companies and a staff of 27 professionals. Equipment leasing is estimated to be a $244 billion industry in 2002. Visit ELA online at http://www.elaonline.com. ###
First Quarter 2002 Performance Indicator Report Participants ADP Credit Corporation Amsouth Leasing Corporation Caterpillar Financial Services Corporation Computer Sales International, Inc. Dana Credit Corporation De Lage Landen Financial Services Farm Credit Leasing Services Corporation Fleet Capital Leasing GreatAmerica Leasing Corporation John Deere Credit Corporation Hitachi Credit America Corporation Key Equipment Finance LaSalle National Leasing Corporation U.S. Bancorp Leasing & Financial Verizon Credit, Inc. Wells Fargo Equipment Finance ######## ################################### ################# ----------------------------------------------------------------------------------------------- Economic
Production Best in 19 Years
Associated Press Writer Factory
orders: http://www.doc.gov/ -------------------------------------------------------------------------------------------------------- http://www.leasefoundation.org/ Providing Industry Research Since 1989 ___________________________________________________ Tyco Chief Said to Be Focus of Sales Tax Investigation By ALEX BERENSON New York Times . Dennis Kozlowski, the embattled chairman of Tyco International Ltd., is under criminal investigation, suspected of avoiding New York State sales taxes, lawyers involved in the inquiry said over the weekend. The investigation, by the office of the Manhattan district attorney, Robert M. Morgenthau, began several months ago, said the lawyers, who represent different parties. In the last few weeks, they said, the investigation has grown increasingly serious, with a grand jury issuing subpoenas and taking testimony. No charges have been filed, and the grand jury may choose not to. E. Kaufman, an experienced criminal lawyer, to represent him. Reached yesterday at his office, Mr. Kaufman confirmed that he was representing Mr. Kozlowski but said he could not comment further. The company did not return calls seeking comment this weekend. The intensity of the investigation has surprised Tyco's board, which has been buffeted since January by Tyco's plunging stock and questions about its accounting practices, according to a person involved in the board's discussions. At least for now, the board continues to support Mr. Kozlowski, this person said. Details of the investigation are scant, but prosecutors are said to believe that Mr. Kozlowski, who has moved hundreds of millions of dollars into family trusts, may have used those trusts to buy goods and services without paying state sales taxes, the lawyers said. The investigation is another serious blow for Mr. Kozlowski, a former accountant who built Tyco into one of the world's largest companies and made a fortune for himself during the stock market boom of the late 1990's. With 240,000 employees, Tyco, based in Bermuda with headquarters in Exeter, N.H., makes everything from electrical equipment to syringes. Aided by hundreds of acquisitions, Tyco had its reported earnings rise steadily over the last decade, and the company became a favorite of big investors and mutual fund companies like Fidelity. At its peak, Tyco had a market value of $120 billion, making it one of the 20 most valuable companies in the United States. Mr. Kozlowski made hundreds of millions of dollars over the last three years selling Tyco stock, even as he said publicly that he rarely if ever sold his shares. Along the way, Mr. Kozlowski, the son of a Newark police detective, raised his social profile, buying and racing yachts. But even as Tyco grew, the company's accounting and business practices drew scrutiny from some analysts and journalists. Tyco was one of the first big companies to move its nominal headquarters offshore to avoid United States taxes. It disclosed in January that it had paid one of its independent directors $10 million last year as a finder's fee for a merger, raising questions about that director's independence. Since the collapse of Enron, Tyco has become one several companies whose accounting practices have come under more intense scrutiny. Like General Electric, I.B.M. and Computer Associates, Tyco uses highly complex accounting methods, and its financial statements are so clogged with footnotes that they can take days to read. Short-sellers, who profit when stocks fall, have argued that Tyco manipulates the finances of the companies it buys to make its own profits appear to be growing faster than they are. The company, denying this, says its accounting is proper. A powerful man with a sometimes short temper, Mr. Kozlowski has aggressively challenged reporters and analysts who criticize Tyco's accounting practices. But that strategy seems to have backfired recently, as Tyco's stock has plunged by almost two-thirds since December, leaving its shareholders a collective $80 billion poorer. Tyco closed at $21.95 on Friday, up 45 cents. In an effort to reverse the overall slide, Mr. Kozlowski announced in January that he would split Tyco into four companies, abruptly reversing a decade of growth by acquisitions. Then, in April, he reversed field again, telling shareholders that Tyco would remain a single company. The shifts in strategy have left some investors grumbling that Mr. Kozlowski should resign, although Tyco has said its board strongly supports him. Tyco's stock briefly rose 5 percent last week after an Internet site posted a rumor that Mr. Kozlowski was stepping down. CIT Observations from Sage Lowell Sims Kit Your perceptions of CIT are "dead ass, right on" It has been a great old line financial company, persevering through thick and thin. Its underlying quality is the people who can make it happen and keep it happening, year in and year out. Able to discern a credit for what it is, shore up the weak aspects, and make that necessary YES/NO decision. Then collect it, no matter where the economy goes. (including South) So much of this has been lost as CIT has been passed from one parent to another. I worked for CIT in 1983 when RCA bought it from the Ittelson family. Wisdom among the old timers was, "they paid too much for it." And the sequence started. RCA sucked a bunch of cash out (sold Manhattan headquarters and leased Livingston offices etc.) Then figured out what they really bought and the Greater Fool sequence started. Sold it to Manufacturers Hanover Bank. Manny Hanny merged with a big Japanese bank and went Bye Bye. I have forgotten several steps in the sequence but it has ended up with Tyco as possibly the Greatest Fool. Can they find a Greater One? Maybe Lehman is right? The Balloon has been blown up so big with hot air perceptions of Market Valuation (etc. etc.)(fluff) and the cooling off’s going to cost so much the common guy can not even fathom it. Lowell Sims <LowellSims@att.net ((Don’t let Lehman fool you, they were posturing themselves to steal CIT. Let’s not forget these New York Stockbrokers brought us Unicapital, among others, raising money when high yield equipment, especially aircraft leasing, was attractive. Some of these stockbrokers are nothing but immature leasing brokers, who know everything, are motivated solely by the “buck”, meaning they want to put the deal together and move on to the next because they are solely commissioned salesmen ( except at Lehman, they make it both ways: selling and buying.) Unfortunately, you may be correct in your observations. Please read Ron Caruso’s comments on CIT, which follows. Editor.)) ----------------------------------------------------------------------------------------------- Only Eight AAA Companies Compared to 60 in 1979 Excerpt from Ron Caruso’s Pulse OnLine The number of corporations that are rated AAA continues to decline. In 1992, according to Moodys, there were 21 AAA- rated companies and in 1979 there were 60. Today, there are 8. In fact, only one company, General Electric, had kept its Standard and Poor’s AAA rating since 1960. As the competitive landscape continues to shift, staying aware of customer needs and wants and alternatives is a life and death issue- ask AT&T or Xerox or Polaroid – having a highly regarded corporate name still demands taking the necessary steps to maintain it. Further Consolidation? Two major leasing companies/operations are on the block – CIT and HSBC’S (formerly Marine Midland) leasing division. CIT’s parent, Tyco, has indicated its intent/attempt to spin CIT off in an IPO. Will this be successful? If it is, can the again-independent CIT be as successful as it has been during its 75-year history? HSBC has entered and exited the leasing industry on at least two other occasions. Today, it has a billion-dollar plus portfolio underlying a national middle market capability. Will this operation be sold as an on-going operation or as a portfolio acquisition? The successful sale of these operations in an IPO for CIT/Tyco and acquisition from HSBC would avoid a further contraction in the membership of the leasing world. The alternative for either or both would mean further consolidation – fewer whales. Stay tuned. Brought to you by The Equipment Financing Journal (The EFJ) In this bi-weekly e-newsletter, we will be providing you with important equipment financing news with an interpretation of what’s happening in this financial sector and its impact. As always, your comments and suggestions are welcome. =============EFJ Pulse Online Sponsor==================== Nassau Asset Management Recovery and Remarketing Specialists 1(800)462-7728 or 1(800)4-NASSAU GO HERE>>>>>> www.nasset.com WE GET RESULTS!!!!!!!!! Servicing The Leasing Industry for more than 25 years!!!!!! *Covering all 50 states and Canada *Fastest turn around *24 hour reporting via Web *Highest resale prices Call Nassau now for a complete assessment of your needs!!! --------------------------------------------------------------------------------------------- Economic Indicators Expected This Week MONDAY May 6 Construction Spending: April TUESDAY May 7 None WEDNESDAY May 8 None THURSDAY May 9 Sales of Leading Retailers: May Weekly Jobless Claims FRIDAY Unemployment: May Consumer Borrowing: April ___________________________________________________________________ Visit www.leasingnews.org for classified ads, The List, Books, Bulletin Board Alerts ========================================================== Secrets for improving credit score revealed
by Anne Perry San Diego Union-Tribune You're saving to buy a house in a year or two. Meanwhile, you know it's important to have a good credit score to get a desirable mortgage rate. Perhaps you already know your credit score. But do you know how to improve it? Now you can get some tips directly from Fair, Isaac and Co., the creator of FICO, the most widely used credit-scoring measure. The company describes its latest innovation at its www.myfico.com Web site as part of its long-term initiative to demystify credit scores for consumers. In years past, your FICO – or the predictor of your credit behavior based on computer modeling – was sold to lenders but unavailable to you. But in March 2001, Fair, Isaac responded to consumer complaints and a new state law and began offering consumers the ability to learn their credit scores. Since that time, for $12.95 visitors to the Web site have been able to obtain their scores within minutes, get copies of their credit report from Equifax (one of three major credit reporting agencies) and read explanations of their scores. In its first year, the site attracted 1 million users, far more than expected. "We were dazzled," says Craig Watts, a spokesman for Fair, Isaac. But visitors wanted more, he says. "Consumers from Day One have been saying, 'What you're not telling me is how I can improve my score.' " Now, for the same price, the package also includes an interactive tool the company calls the FICO Score Simulator. Once you've received your credit score and learned your strengths and weaknesses, you can experiment with some interesting – though limited – "what if" questions. What if you paid off all your credit cards tomorrow? What if you didn't pay your bills for three months? You can only explore one scenario at a time, but the results can be illuminating. Let's take my own due-for-improvement case. FICO scores range from 500 to 850, with 720 being the median. My own paltry 670 – nothing you'd want to take to a mortgage lender – was due to two negative factors: the proportion of balances to the limits on my credit cards was too high, and I had too many credit cards. I plead guilty to both. In the first instance, a large expense check had gotten hung up. As for the second, it's true I have seven credit cards, four to retail stores that I never use. The average, according to the FICO site, is four or five. My positive attributes included a relatively long credit history going back more than 24 years, and no evidence of seriously late payments on my credit accounts. Before cranking up the Score Simulator, you'll see a caveat. The simulation exercise provides an approximation of the impact on your FICO score, which is made up of complex information that is changing daily. And because you can only test one factor at a time, you can't gauge the result of taking two positive actions. So what could I do to put vitality back in my FICO? I had six possible actions to take for a test drive: pay bills on time; pay down the balances on all credit cards; miss payments; max out the credit cards; seek new credit; and transfer credit card balances. Clearly the place for me to start simulating was with my high balances. I asked the simulator to pay off 10 percent of my total balances. The approximate impact: my score could range from 670 to 710 – about the same or slightly better than my current score. If I paid off half? It could go from 710 to 750. If I paid it all off? A nifty 740 to 780, with no questions asked about my improved cash flow. Just out of curiosity, I asked what would happen if, instead, I completely maxed out the cards? A possible 620 to 670 – that is, the same or somewhat worse than my current score. Then I went to a second category. What if I applied for new credit? How about an auto loan for $18,000? My score could take a slight hit, dropping to a possible range of 655 to 675. I also tried a third category. What if I missed the payments on all my accounts for the next three months? My score would stay the same or drop to 635. You should come away from the simulator, as I did, with the impression that the things you could do in the short run, such as taking out a car loan or missing some payments, are likely to affect your score incrementally. Getting your score to move in a big way, however, such as by paying off your balances, usually takes some time. Watts compares trying to raise your FICO score to trying to improve your cholesterol level – hard to move in the short term, but your behavior can make a significant difference over the months and years. That's why anyone contemplating the purchase of a home – as many visitors to the FICO site are – should start planning to polish scores well in advance. The site itself offers some motivation – a loan savings calculator – that provides current auto and mortgage loan rates from your state and shows just how dramatically rates can differ depending on FICO scores. On the day I visited the site, consumers with the highest scores of 720 to 850 averaged 6.812 percent for a 30-year fixed-rate mortgage, while those with a 675 to 699 score averaged 7.486 percent, and those with the lowest scores, 500 to 559, averaged 10.198 percent. The calculator allows you to plug in your current FICO score, your target score and your projected mortgage amount and see the difference in your future monthly house payments. Not surprisingly, it's hundreds of dollars per month. So don't get mad at your FICO. Just take charge of it. ----------------------------------------------------------------------------------------------------- http://www.leasefoundation.org/ Providing Industry Research Since 1989 -------------------------------------------------------------------------------------------------------- ### #### ################################# ################### Seismiq, Inc. Nominated For eLNA Web Award (Lessors.com, Inc.) - Atlanta, GA - The eLessors Networking Association has announced the Seismiq, Inc. (www.seismiq.com) Web site has been nominated to receive its 2002 eLNA Web Award. John O. Semon, eLNA Chairman, said, "The eLNA Web Award will be presented at our Annual Networking Conference to the company nominated and voted by our membership as having the most dynamic and content relevant Web site serving the equipment leasing industry. I am pleased to see Seismiq, Inc. nominated by our membership. Seismiq's Web site represents the high standard of excellence we expect the eLNA Web Award to recognize." About the eLNA Web Award The eLNA Web Awards program recognizes outstanding contributions and innovations in the field of technology and finance services. The eLNA Web Award is presented annually at the annual eLNA Networking Conference to companies introducing new concepts, techniques and content in their Web design with enduring value to the eLeasing community. For additional nomination and voting information, visit http://www.elessors.com/awards.html. About the eLessors Networking Association The eLessors Networking Association represents a proactive "eLeasing Industry"... a national network of industry leaders and smaller pre-IPO companies and professionals from the technology, commercial finance and manufacturing business sectors. Additional information is available from - http://www.elessors.com #### ### ############################################ ############### Comark
Capital Selects Isis Leasing System Cyence
International announced that Comark Capital LLC has selected Isis
Leasing System as its platform to automate leasing processes for
its captive equipment finance business. Isis
will allow Comark Capital to more accurately manage their entire
sales management and internal process flow. Isis incorporates full
application entry and tracking, including full asset entry, lease
pricing quoting, and remarketing, lease documentation, unlimited
comment screens and full memo based notes, complete internal audit
trails, reporting, and a host of other features incorporating industry
best technologies. Comark
will use Isis to process applications, quote pricing, execute contracts
and initiate the booking of deals from any desktop. Managers and
salespeople will be able to track all applications in the business
pipeline in real time. "Replacing
the present collection of manual systems with a single platform
that can be deployed nationally is a major achievement for us,"
states Joseph H. Rinehart, Vice President - Leasing, at Comark Capital.
"After
an extensive review of the potential applications available, we
chose Cyence International and its Isis Leasing System platform
because of its robust process tracking and asset management capabilities.
Isis Leasing System provides an easy to use solution that is flexible
enough to support our sales channels, programs, and workflows and
it will support us for substantial future growth." "We are very happy to be working with Comark Capital on this project" says Mike Cumby, VP and General Manager of Cyence International, USA. In Isis Leasing System, we have a solution that will meet their need for speed, automation and rapid deployment. We are committed to a successful and long term partnership between Comark and Cyence”. For more information about Comark, please visit www.comark.com. For more information about Cyence, please visit www.cyence.com. ### ############################################# #################### eMarket
Capital Releases Latest Version of Trinity (King
of Prussia, Pa. - eMarket Capital, Inc. (www.emarketcapital.com)
announced today the release of Trinity Version 2.4, its own exclusive
technology platform that uses a patent pending process to match
Vendor-Partner customers with lenders able to meet their equipment
financing requirements. "Our
new technology platform offers eMarket’s Vendor Partners, their
customers and lenders a seamless user experience and faster access
to critical application and transactional data," explained
Bernard Hoffman, eMarket Capital’s Director of Software Engineering.
Created
by eMarket Capital, Trinity Version 2.4 adds power and adaptability
to industry standard features, allowing eMarket Capital to react
quickly to market fluctuations and customer needs. This
latest release of Trinity incorporates powerful tools for managing
programs, an industry standard XML/SOAP data exchange capability
and improved data visibility. "We’re
constantly striving to keep the eMarket Capital technology ahead
of the industry’s needs," stated Hoffman. "Our goal
is full electronic transaction facilitation with a secure and comfortable
user experience." For
eMarket Capital partners, Trinity Version 2.4 provides a customized
look and feel while supporting sales force and lender relationship
management. Unlike offerings from pure technology players, eMarket
Capital’s platform easily complements its partners’ in-house
resources and provides maximumvalue for all who use the system.
"eMarket
Capital believes that people and technology must be precisely matched
to ensure top-quality service to each customer," said Hoffman.
To
begin the process, customers are directed to a manufacturer's web
site. eMarket Capital is designed as a co-branded site which gives
the appearance that the vendor is providing the financial service
directly. The process begins with the submission of a credit application
on-line. Customers also have the option of printing out the application
from the web-site and faxing it to Customer Service at 800-994-4942.
In less than 48 hours, customers receive financing proposals. The
web site breaks out the key terms of the proposal to help applicants
make their decisions. Once a proposal is selected, the financing
is finalized. Customers can contact a Customer Service Representative
at
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