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March 8, 2001
Headlines: Spectrum--Son
of U.S. Capital? Equipment Leasing Association April 26 San Francisco meeting
+ELA Survey of Independent Leasing Companies - a $99 Value! +
Equipment Leasing and Finance Foundation B2B Report - Net Readiness +Door Prizes and other Giveaways "........was a consistent contributor to the United membership committee, when I was active on it. He came up with some good ideas. We should get him active again."
Dwight
Galloway
Happened to?...... tomorrow---Friday
Son of U.S. Capital, Santa Barbara, California?????
Thanks
for all of the efforts, keep up the great work. A few of my customers were phoned
this pm by a company called Spectrum Capital. They were customers that were stiffed
by United Capital when they stopped funding.
http://www.spectrumfinance.com/company.htm
Thought it might help others to know this stuff.
Bisonlsng@aol.com
Terminal Marketing, New York, New York
There are more stories coming in about this company and people's experience. I think we are getting the idea about the problems involved, so I am not printing them, except for this from Bob Rodi at LeaseNow:
I also have to relay to you my experience with Terminal Marketing. I find it hard to believe that so many brokers get sucked in by guys like this. Sandy Schneiderman had his mouthpiece, a guy named "Ravi", I believe, wondering around New Jersey and PA, trying to sign brokers up for some bogus program that they had cooked up. They visited Marina and I when we were in Cherry Hill, NJ and I felt like I wanted to take a shower after this guy left. He basically avoided every intelligent and reasonable question that a third party should ask of any company that is offering to fund transactions. When Ravi left my office I decided to check a little further and I called my good friend Steve Geller who knows, or knew everyone in that area. Steve knew the company well and gave me a friendly "heads up". While he has far too much class to say anything really bad about anybody it was the stuff he didn't say that gave me the information I needed to avoid getting caught up in one of Terminal Marketings "programs". You know the old saying that "if it quacks like a duck and walks like a duck then there's an excellent chance that it's a duck". The people from Terminal Marketing quacked so loud it was really hard to mistake what they were. This just underlines the point that you always make about checking out who it is you are doing business with. If more people took your advice these guys would have a place to peddle the crap they sell.
Bob Rodi LeaseNOW, Inc. www.leasenow.com drlease@leasenow.com 1-800-321-LEAS (5327)
Canada
You posted my question to you about Canadian funding sources along with other "comments from readers" about Leasing News.
I just wanted to let you that although my particular question was "buried in" with many other unrelated observations and comments, quite a few of your eagle-eyed readers picked up on my question and took the time to email me directly with ideas and suggestions. Leasing News readers are a real community and many demonstrated their commitment to "the community" by reaching out to help me. It was really nice. I was impressed.
Thanks again. Bob Arnowitt First Capital Equip. Leasing Corp. PO Box 1018 E. Sandwich, MA 02537-1981 PH 800-541-0114 FX 800-403-3529 Bob@LeaseExperts.com - Lease Guru Bob Baker Says This Economy Has Great Opportunities!!!!
I have been overwhelmed with calls from small brokers who are in a panic.
They seem to be hearing that the industry is in for very tough times. The theme of the day is we are going into a recession and I can't compete against all of the "Big" leasing companies. To all of this I say " BULL" !!
I have been in this business of financing and leasing for over 30 years.
I can honestly say I have not seen business this good for over a decade. Over the last few years , especially the last couple , we have seen multiple mergers and acquisitions. Leasing companies today are either giants or ants.
In my humble opinion this has created tremendous opportunity for the small broker.
The big leasing companies could care less about the vendor that can only do two or three deals a month. In fact many small vendors are crying to do business with a leasing company that cares more about their vendors success than just an 800 # to send in a deal. Working with the small vendors keeps you under the "Radar" of the big boys.
Look at the math. A small $30,000 transaction with only 5 points yields a broker $1500.00 . 6 vendors doing only 3 deals a month is 18 deals a month at $1500.00 each generates 18 X $1500.00 = $27000 in monthly revenue or 324,000.00 Annually!!
The key today is working smart not hard. Focus on a small group of vendors and spend 100% of your efforts creating a CUSTOM FINANCE PROGRAM for your vendors.
Become value added to your vendors and you will have EARNED their respect , loyalty , and most importantly their leasing business.
One of my favorite quotes is the definition of an OBSTACLE " IT IS WHAT YOU SEE WHEN YOU TAKE YOUR EYE OFF THE GOAL" . forget the stories you hear of doom and gloom- opportunity abounds.
Great
Selling!! Equipment Leasing Association---Fog City San Francisco, CA - Thursday, April 26, 2001 Renaissance Parc 54 (55 Cyril Magnin Street)
*Sponsored by GnazzoThill, San Francisco, CA*
Join us for a Packed Luncheon Program on these Informative Topics:
Complete Electronic Lease Transaction Charles J. Nabit, Southport Financial, Baltimore, MD Matthew Shieman, Matsco Financial Corporation, Emeryville, CA
See what technologies are involved in an electronic lease transaction - see how it actually happens! Finally the talk becomes reality! find out who was involved in the first electronic lease transaction and more...
How to Put Together and Store an Electronic Lease that your Lender will be Willing to Accept as Collateral Ruth A. Strauss, GnazzoThill, San Francisco, CA
What will your lender look for? How do you and should you put together and store an electronic lease that your lender will be willing to accept as collateral? This presentation will cover the influence of Revised Article 9 on the perfection of security interests in chattel paper, proposals for corrective amendments to address uncertainties, and security measures that you should take in the interim.
Legal Update on Digital Signatures Mark Schreiber, Cooper White & Cooper, San Francisco, CA
Need to know the latest on digital signatures? An important legal update on this great step forward in e-business
Schedule: Registration 11:30 a.m. Luncheon & Presentation: 12 Noon - 2:30 p.m.
Registration Fees: ELA Members $65. Non-Members $100
However, anyone responding from Kit Menkins Leasing News will automatically receive the member price! Just note it on your registration form!
All Metro attendees will receive FREE giveaways including: *ELA
Survey of Independent Leasing Companies - a $99 Value! *Door Prizes and other Giveaways For further information on this and other ELA Metros go to the ELA web site at http://www.elaonline.com/events/2001/metros/index.cfm. To register, print the Registration Form and fax to ELA Meetings at (703) 527-2649. Questions? Call Jeanne Lund at (703) 516-8366.
Katie
Plona
Leasing News Advisory Board to go to New Orleans
A reader wanting to change "Today in history..." to "tomorrow in history" gave me the idea to ask for feedback, and perhaps even meet at a conference to hear what the readers like, don't like, what they want to see, learn how we work. Michael Meacher was the first to respond.
"The NAELB ( National Association of Lease Brokers ) Board would like to take you up on your offer to run a roundtable discussion in one of our session rooms where you and any of the Leasing News advisors talk with the audience about what you are doing, how to do it better, what services they would like to expand, delete or modify."
" We have arranged a session with another presenter on the topic of E Resources. We are going to solicit on ListServe and perhaps through Leasing News to secure sites from anyone and everyone that they regularly use for their business. We'll then compile and rank them for this E Resources session. If we give you the insert, would you be willing to push that?"
"Look forward to seeing you in New Orleans."
Mike Meacher@bankgrouponline.com
( We are polling our advisory board to see how many want to join me. I am dangling a dinner at Emerile's in front of them. If it goes well, we may do this at another association conference. As for collecting web sites, I have a whole bag. Here is one for those who want a new name: www.new.net ).
LeaseForum Enhances Affiliate Network With Addition of TechSmart
BOSTON--(BUSINESS WIRE)--March 8, 2001--LeaseForum, Inc., a leasing and asset services firm providing an integrated suite of Web-based applications that improve the sourcing and management of leases and equipment by companies, today announced the addition of Long Island, N.Y.-based TechSmart, the leader and complete-solution provider in office-technology asset management, to its network of Forum Affiliates.
An extensive network of service providers, Forum Affiliates enable LeaseForum to offer a full range of asset recovery and remarketing services to lessees and lessors including asset tracking, logistics management, asset valuation, asset recovery liquidation and disposal services. LeaseForum offers lessees and lessors online and offline access to multiple liquidation channels for off-lease and surplus equipment, including its full-featured RemarketXchange(TM), specialized exchanges and channels provided by partners like TechSmart. With the addition of TechSmart to the affiliate network, Lea seForum's customers can now offer quality-assured and guaranteed pre-owned office technology equipment to qualified buyers.
"TechSmart has an established presence and a proven approach to the specialized world of high-volume office technology equipment liquidation," said David W. Fisher, vice president of equipment services for LeaseForum. "Many corporations are dealing with large and rapidly growing volumes of off-lease and surplus office technology equipment. The activity reporting, logistics, warehousing and remarketing services which TechSmart brings to the affiliate network enable LeaseForum to deliver custom solutions that address the particular issues related to this class of assets."
"TechSmart is excited to be selected by LeaseForum to participate in its Forum Affiliates network. With our state-of-the-art warehouse facilities, world-class reporting and comprehensive asset value-recovery program, we are best positioned to handle the volume of assets the LeaseForum relationship brings," said Michael F. Boyce, vice president of TechSmart's asset-management leasing division. "TechSmart's single-source, complete-solution asset management services provide an effective way for LeaseForum's customers to increase the return on their investments made in office technology assets, whether acquired via leases or purchased outright."
About LeaseForum, Inc.
LeaseForum, Inc., delivers end-to-end solutions for the effective management of leases and equipment by corporations. Through its integrated suite of Web-based applications, leasing professionals and strategic partners, LeaseForum is leveraging the strengths of the Internet to improve corporate leasing and asset management initiatives across departments, divisions or the enterprise.
Headquartered in Boston and founded in 1999, LeaseForum's investors include Shawmut Capital Partners (www.shawmutcapital.com). For more information, please visit www.leaseforum.com or www.remarketxchange.com.
About TechSmart
TechSmart is a Long Island-based, complete-solution provider of office-technology asset management services to the equipment leasing industry, corporations and retailers/"e"-tailers. TechSmart provides a single-source solution for these assets, including logistics, warehousing, automated merchandising, remarketing, SAP reporting, and dedicated customer service. TechSmart's management team has more than 70 years of experience in the commercial equipment leasing industry.
CONTACT: LeaseForum, Inc. Susan S. Franklin, (617) 443-9910 ssf@leaseforum.com OR Donovan Group Billy Balfour, (508) 393-1433 bbalfour@donovangroup.com
Texas Postal Service Projects Affected By Postal Capital Spending Freeze
DALLAS, March 8 /PRNewswire/ -- The Postal Service Board of Governors today announced a moratorium on capital spending nationwide until the Postal Service is able to turn around its financial situation.
In Texas, all Postal Service new construction or major repair projects scheduled for 2001, but not under contract, are on hold for the foreseeable future. The projects total nearly $9 million.
The Board of Governors has reiterated their commitment to achieve postal reform, and announced today a series of steps being taken in light of a potential $2 - 3 billion deficit this fiscal year that could threaten universal service at affordable prices.
"The United States Postal Service faces a financial situation that requires drastic action by management. We are projecting a fiscal year 2001 deficit likely to exceed $2 billion and the deficit cannot be averted by better Postal Service management alone," said Board Chairman Robert F. Rider.
Following a strategic planning Board of Governors meeting, those actions identified include the intent to file a rate case this summer which could lead to postal rates increasing by as much as 10 to 15 percent, and a directive to freeze all postal construction, with an anticipated reduction of $1.6 billion in the capital plan. The construction freeze reflects the service's lack of available cash due to the Postal Rate Commission authorizing nearly $1 billion less than requested in new rates. A list of Texas facility projects affected is attached here, and more actions will be identified over the next several weeks.
Also, in a letter sent to Administration officials and Congressional leaders last week, the Governors said, "We are taking the steps within our power to sustain the institution. Long-term solutions, however, require substantial changes to our regulatory framework. We urge you to devote the resources necessary to implement a comprehensive review and overhaul of the postal laws of the United States."
After five consecutive years of record earnings, the Postal Service showed a loss of $199 million in fiscal year 2000. During the past 18 months, efforts by postal management have resulted in removing an estimated $2 billion in costs from the system by moving to paperless transactions and web-based purchasing; centralizing procurement contracts; better utilizing mail processing equipment; more effectively scheduling and deploying staff; eliminating administrative duplication; and better utilizing existing transportation contracts.
Despite these efforts, the Postal Service now finds itself facing financial difficulties in part spurred by a slowing growth of First-Class Mail volume, an arbitrated labor settlement, a rate-making process that has provided less than break-even rates to operate the service, and the downturn of the American economy.
2001 POSTAL FACILITY PROJECTS FROZEN
Business Loans Blamed for Lower Profits
A 34% surge in bad commercial loans and $2.3 billion of losses on securities sales combined to break the banking industry's eight-year streak of record earnings last year, according to data issued by the Federal Deposit Insurance. A preliminary release of the agency's yea rend earnings report showed that despite a 2.1% increase in net operating income, to $72.8 billion, bank earnings last year fell by $380 million, or 0.5%, to $71.2 billion. The agency attributed the losses on securities sales to declining interest rates, which reduced the value of fixed-rate securities. By comparison, the industry earned $181 million from selling securities in 1999. Loss provisions for all loans jumped 33.8%, to $29.3 billion, the highest since 1991. The actual amount of loans charged off during the year rose 15.7%, to $23.6 billion. About $7.7 billion of those bad loans were written off in the fourth quarter, a 27% increase from a year earlier. Bad commercial loans accounted for 39% of the loans charged off in the fourth quarter and 33.2% of charge offs for the full year. Ross Waldrop, chief of the banking statistics section of the agency's research divisions, said the trend in souring commercial loan portfolios appears to have momentum. "The increase in loss provisions reflects increasing credit quality problems in loans to commercial and industrial borrowers," he said. "The expectation is that in the near future it will continue to rise and will continue to have a negative effect on earnings. It will probably result in lower earnings; it will not result in net losses or failures." At yea rend, 1.67% of all commercial loans were non current, up from 1.17% in the previous year. Waldrop said that the problems with commercial loans are centered primarily on large domestic institutions. Only 38.8% of banks reported an increase in non current commercial loans, but those banks held 77.9% of the industry's commercial loan portfolio. The problems are directly reflected in bank earnings. According to balance sheet data, 67.9% of banks reported higher earnings last year than the year before. However, three of the five largest U.S. banking companies, and ten of the 20 largest, reported declining earnings. Among the hardest-hit were First Union and Bank One. If those two institutions were removed from the FDIC's calculation, the industry's earnings would have increased by 8.5% last year. Despite the decline in earnings and increasing concerns about commercial loan portfolios, the FDIC took pains to note that earnings remained at near-record highs, and charge offs are still occurring at relatively low levels. In fact, fourth-quarter earnings last year were $17.8 billion, $91 million more than in 1999, making it the fifth-best quarter in the industry's history. A strong fourth quarter also helped offset an otherwise tough year for the thrift industry, the Office of Thrift Supervision reported.
Finova Former CEO May Get $9.3 Million in Severance By Max Jarman, The Arizona Republic Matt Breyne, who surrendered the helm of foundering Finova Group this week, could walk away with a golden parachute worth more than $6.3 million. And he may be entitled to an additional $3 million on top of that, according to Securities and Exchange Commission filings.
Although the company declined to comment on Breyne's severance package, its latest proxy pegs it at three times his highest annual salary, bonus and performance-based stock awards. That would be three times $2.01 million. He earned a $525,000 salary for most of 2000 and in 1999 received a $326,342 bonus and $1.25 million in performance-based stock awards. But an executive incentive plan adopted in May allows Breyne and a dozen other Finova executives to split $20 million if their jobs are lost due to a "change of control" of the firm. If he qualifies, Breyne's share of that pot would be $3 million. Judy Fischer, manager director of Executive Compensation Advisory Services in Alexandra, VA, called Breyne's severance package unusually lucrative. Normally, they don't include the performance-based stock awards, she said. Breyne's departure followed an announcement last week that a partnership between Leucadia National and Berkshire Hathaway would loan Finova $6 billion under terms of a Chapter 11 restructuring. The deal gives control of the company to Berkadia, which appointed Leucadia executive Lawrence Hershfield to head the company's restructuring. The former head of Finova's principal operating unit, Breyne became president and CEO of the parent company in March 2000 when longtime chief Sam Eichenfield resigned in the wake of a surprise $70 million loan write-down. The agreement with Berkadia requires Finova to file for Chapter 11 by March 8. Some analysts believe the restructuring will involve a liquidation of the company's assets. The industry "had a very good fourth quarter and really, a very solid year 2000, which is extremely impressive given the very difficult conditions the industry was facing, particularly in the first three quarters," OTS Director Ellen Seidman said. Net earnings of $8 billion in 2000, down just 2.4% from the record year of 1999, are a good sign for the future, she said. "In the declining interest rate environment that we are seeing, the industry is well poised to take advantage of the next mortgage refinance boom." Not all the news was good, though. A growing number of problem thrifts, those with Camels ratings in the 3-to-5 range (1 being the top score and 5 the worst), have drawn the agency's attention. Ninety-eight institutions with $29.8 billion of combined assets fell into the 3 category last year, up from 68 with $21.6 billion of assets a year ago. Higher interest rate risk exposure and credit quality concerns are the main culprits in the down gradings, the agency said. |
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