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March 12, 2001
Headlines:
Baker Kudo's Keeping Coming In------ eMarket Capital Names Mellon Leasing as Lender Pre-qualified for $100,000 from UAEL Member! Wow! Equipment Leasing Association March 21 Meeting, Long Beach, California ( Mention Leasing News and get in at the "members" price ) The List---up-dated ----------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------- We encourage you to send to a colleague, or quote any part without our permission. This newsletter is free to those who request it. We do not spam. No banners or advertisements. ----------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------- Baker Kudo's Still Coming In----- Both Bob Baker and Linda Kester are shinning examples of what being a Top Gun Trainer and person is all about. If you can't learn something positive from these two, give up on leasing and go into another profession. We are never to old to learn from other people. Sincerely Michael Granieri Granieri Associates Granite63@aol.com + + + I am a recent Loan Consultant graduate and when I retire in Sept. I plan to begin my new career as a broker doing equipment leases in the field I am retiring from the Automotive end of the business. I have been reading your mail daily and I just want to say "Thank You". You are a breath of fresh air and I compliment you on the material and your honest delivery of the news. I have my business certificate and will be operating as CBC Funding and my email is pbcolwell@aol.com. I would like to add a nice hand to Bob Baker. Having been in sales all my life I agree with his statements 100%. All my Best--- Bob Colwell -------------------------------------------------------------------------------------------- ( if you are in Southern California next week, here is an event you won't want to miss! ) March 21 Long Beach, California Wednesday next Week Marriott Long Beach 4700 Airport Plaza Drive Here is your opportunity to attend at a "member price," by just mentioning Leasing News!!! Equipment Leasing Association Great Topic!!! Meet Your Colleagues!!! A lot of Freebies, too!!!!! Topic: How Compensation and Talent Affect the Bottom Line Speaker: Teri Gerson, Executive Solutions for Leasing & Finance, Inc. Location: Marriott Long Beach, CA (4700 Airport Plaza Drive) Date/Time: Wed., March 21, 2001, 3-5pm for Presentation and Networking hosted cocktail reception 5-7pm Reservations: Jeanne Lund (703) 516-8366 (ELA) Host: Paul Nibarger, Nibarger Associates (310) 541-8609 Cost is $65 if you mention you read this in Leasing News (save $35). All attendees also get, for free: * Equipment Leasing Association Survey of Independent Leasing Companies---$99 value * Equipment Leasing and Finance Foundation B2B Report--$250 value door prices and other give away's and a "hosted" cocktail reception Speaker Teri Gerson will answers these questions: + Your company has real advantages that big companies can't offer. Can you identify them and answer why people are attracted to some companies and not others. + What industry trends can tell you where to look for new vendors, leads. Learn about four new trends. + What are the real earnings for today's leasing people? Get the current numbers. What kind of package do you need to attract talent in all fields for your company. + Some companies grow to become market leaders. Their people got them there. Do you know how to spot talent, or are you finding out the hard way? While we do our best, the best place for news and information is still "eyeball-to-eyeball". ---------------------------------------------------------------------------------- Pre-Qualifed for $100,000 from United Association of Equipment Leasing Member ! !
Wow!!!!! My next door neighbor just received in the mail a "pre-qualified" equipment financing up to $100,000, including a plastic "equipment card", good through 2/03 ( wow!!!) An equipment "line of credit with NO annual fee!" good for two and a half years. All I need to do is call a number to activate it. Or I can go on line, or return a postcard for more information. Wow!!! My next door neighbor, who does internet monitoring, tells me he has no assets nor any established business credit, lives in an apartment two other guys, and has borrowed furniture from us, just received a $100,000 equipment leasing line of credit with No annual fee. No personal guarantee, it appears, and "instant access to capital, no annual fees, dues, activation charges or obligation to use you lease line of credit." And "Pre-qualified equipment line of credit through our Easy Access Lease Program." And the flyer, says they are " Proud Members of the United Association of Equipment Leasing." Who are they? This is what their home page says: "Easy Access Lease is a division of VenServ, Inc. VenServ is a premier consumer and commercial finance company with headquarters in Agoura Hills, California. The company also has offices in New Jersey, Irvine, California and Tempe, Arizona. VenServ is a company backed by Warburg Pincus - a Wall Street investment banking firm. In addition to the Easy Access Lease program, VenServ provides financing programs for some of the premier companies in the United States including Gateway and Insight. For more information, call 1-888-831-4238." And later, he came over, because he received a fax from another company, handwritten, except for the address, with a lady's name on it, that he is pre-qualified for $75,000. He has access to $175,000 ( and why wouldn't I lease a computer to him? ( I did lend him an old one, that we weren't using.) ----------------------------------------------------------------------------------------------- eMarket Capital Names Mellon Leasing as Lender eMarket Capital (www.emarketcapital.com) announced that Mellon Leasing has agreed to participate as a lender in the Internet-based business-to-business leasing service provided by eMarket Capital to major capital equipment manufacturers nationwide. Established in 1973, Pittsburgh-based Mellon Leasing is a Mellon Financial company and is one of the most diversified bank-affiliated leasing companies in the U.S. Mellon Leasing is comprised of four leasing groups: Mellon Large Corporate Leasing, for domestic and international large ticket items; Mellon U.S. Leasing, for transactions that involve more than $500,000; Mellon Manufacturer and Dealer Services, for transactions that involve less than $500,000; and Mellon Leasing Canada, for the Canadian business market. "All four units are eligible to make deals through the sites," said Mark James, Mellon vice president for lease outsourcing. "We are very excited about working with an e-commerce company that has eMarket Capital's depth of understanding and experience," James said. "We are pleased that we can provide our vendor partners and their customers with financing from a lender as respected as Mellon Leasing," said David Prevost, lender relations manager for eMarket Capital. "Mellon is showing a lot of forward thinking in recognizing the profit potential of this new revenue stream." eMarket Capital provides private-label leasing services that help manufacturers close more deals by making competitive lease financing available to their customers. eMarket Capital establishes a customized leasing Web site for each participating manufacturer. Each Web site is operated under the manufacturer's brand name and includes a limited number of lenders who are experienced in that particular industry and who collectively can cater to a broad range of credit risks and types. Customers fill out a single application, and through eMarket Capital's patent-pending Web-based process, receive multiple offers within two business days. Offers are submitted to the customer in a format that simplifies the process of making an "apples-to-apples" comparison. Lenders pay a below- market origination fee only when they complete a deal through one of the Web sites. The service targets capital equipment purchases from $5,000 to $1 million. Transactions in this range represent over 50 percent of the overall market, which analysts expect to grow 5 to 8 percent a year.
---------------------------------------------------------------------------------------- ============================================================ THERE'S STILL TIME TO VOTE FOR THE PIONEERS! The EFJ will be accepting nominations for the Pioneers of Leasing feature article, which is slated for this Spring/Summer. You can make your nominations on our web site until April 15, 2001. When the voting is completed, a panel of judges will determine the top two “Pioneers of Leasing” in each category. These significant individuals will be the focus of a comprehensive feature in an upcoming issue. Visit http://www.efj.com/pages/poll_form.asp to cast your vote today! ============================================================ The List Chronological 87 changes ( This is also on line at our web site: http://www.leasingnews.org/list.htm United Capital, Austin Texas ( 3/2001) reports from readers that customer base, leasing deals, being given to "sister company" Spectrum Leasing, same building; United Capital still nottaking new deals, many employees let go, looks dark. ( 1/2001 ½ employees let go, portion of portfolio sold, discounters not paid, vendors not paid, it is alleged. 1/2001, selling off portfolio, problems ahead with vendors not paid, brokers not paid, sinking in quicksand 12/2000 no new deals until after the 1st of year, Steve Dallas trying to hold it together. Dallas says, " We will survive." Terminal Marketing, NY,NY (3/2001) Brokers report deals not being funded, commissions not paid, appears out of money. U.S.Capital, Santa Barbara, Ca. (3/2001) Many brokers, super brokers, discounters left hold the bag, report they are filing bk Finova (3/2001) files Chap. 11 as per plan, many disputes, Finova Former CEO May Get $9.3 Million inSeverance, says Arizona Republic Newspaper (3/2001) Dow Jones questions take over plans (2/2001) Finova Bailed Out by Buffett-Led Group , Berkshire Hathaway and Leucadia National announced that they have entered into an agreement for a $6 billion loan to Finova Capital , however to clear up creditor issues, will have to file Chapter 7 and hope creditors don't push into Chapter 11, many guess stock manipulations and other "doings" going on. ( 2/2001) downgraded to "C" rating by Fitch "With significant debt maturities due in May 2001 and Leucadia National Corp's $350 million investment withdrawn, Finova's ability to operate as a going concern faces serious challenges."(1/2001) Deal of Leucadia National to Invest $350 Million in Finova falls apart 1/2001 laid off 90 employees, or about 9 percent of its workforce, in an ongoing effort to cut costs. The company continues to employ about 300 people in Phoenix and 940 nationwide. (12/2000) out of market place, many problems, raises $250 MM, but not enough ) (11/2000 Announces they will discontinue business, sell units 11/2000 Suspends Dividend 11/2000 Leucadia National to Invest $350 Million in Finova 11/2000 reports $274 million loss)( 10/2000 Dow Jones notes stock falling and problems at Finova) (10/2000 Dow Jones headlines "Finova Stock Falls As Buyout Hopes Wanes. SierraCities (3/2001) Sierra Cities-Amex Merger Gets Green Light (2/2001) offer by American Express for $5.68 per share in cash. We predicted this last week, naming the company and floor price. American Express active in equipment leasing, likes what it sees, and Sierra Cities is the vehicle, not Advanta or others that it has viewed to purchase. (1/2001 VerticalNet Merger falls apart (1/16/01) Sells Off UK Assets, (7/2000_ 2nd quarter loss, see report http://www.leasingnews.org/articles.doc/newsletter3.htm Manifest Group-( 3/2001) changes name to U.S. Bancorp - Manifest Funding Services Manifest Group--( 9/1/2000 purchased by US Bancorp Leasing and Financial, "...a win for all the parties involved," Brian Bjella. 11/2000 Donald Polfiet leaves and no one knows where he went. If you know, please tell us. Preferred Capital ( 3/2001) Rumor close to sell to Capital Werks, and will become Preferred Leasing, a Capital Werks Company, this month (2/2001) internal memo about training by company about to take over, supposedly there for several months, "training" employees (01/2000 Mark Seif confirms for sale; will make no further comments (12/2000) Company reportedly on the block "one the block." ( 11/2000). David Murray left 11/7 "didn't like letting his friends go." LeaseExchange.com (3/2001) Tom Williams to give it a 90 day trial run, also trying to raise money (2/2001) reported on "auto- pilot" ( 1/2001) Closes Irving office, cuts staff Studebaker Worthington Leasing ( 2/2001) sold to State Bancorp Efinanceworks (2/2001) lays off 27 employees, says will return $150 million to investors, and is shutting down. eLease ( 2/2001 )employees Let Go, Prime Street is "History." (12/2000) purchase by Primestreet (June/July/2000)senior management changes ) Keystone Leasing (2/2001 ) the former management team of K.L.C., Inc. (dba Keystone Leasing), headed by its co-founder Alan Kaufman, formerly a Unicapital, has formed a new equipment leasing business, Keystone Equipment Finance based in West Hartford, CT. Saddleback Financial ( 2/2001) the management team of Orange, CA-based Saddleback Financial, headed by co-founders Warren Emard and Stuart Kennedy, survives with new investors, and does not do broker business. Lyon Credit (2/2001 ) founder John Bowes leaves , the company still is seeking new business, despite reports to the contrary ( 10/2000 ) operating as United Capital, a Division of Hudson United Bank, closes Dallas, Texas office (6/2000) closes Atlanta and Irvine, Calif. office (9/99 Hudson United Bancorp buys Lyon Credit Bayview Capital ( 2/2001) reports fourth quarter 2000 net loss of $92.5 million ( 12/2000 announces $17 million loss/later does not issue dividend ) U.S. Mellon, San Francisco (2/2001) Brian Madison Leaving, reportedly U.S.Mellon for sale Dana (2/2001) reports huge 4th quarter loss ( 7/2000 sold off portfolio, active as captive lessor ) (2/2001 posts a fourth-quarter net loss, eliminates 10,000 jobs ( 7/2000 sold off portfolio, active as captive lessor ) CIT ( 2/2001) Closing Atlanta office and others, "freeze" on new broker business Comstock Leasing (2/2001) files bankruptcy ( 3/2000) Unicapital then Linc purchased Comstock and discontinued operation this date ) El Camino Leasing, Woodland Hills, California ( 2/2001 ) GATX announces purchase of portfolio, making ATEL Capital largest independent owned leasing company in the world (1/2001) ( 1/2001 reportedly winding down, sold portfolio, selling partner relationships, selling off all assets (10/2000 No longer taking broker business 11/2000 struggling to stay in leasing business, according to insider reports Old Kent (2/2001) Closes door to new broker business Source Capital, Spokane, Washington, (2/2001) Issues $.22 per share cash dividend, $1 million net income, 4% decrease from previous year. ( 11/2000 ) ceases accepting broker applications PLM International (2/2001 )MILPI Acquisition Corp completes cash offer for outstanding stock Colonial Pacific (2/2001)Colonial Closes former "Tilden Operation" in New York and Anaheim, rumors floating to surface: GE/CPL will leave small ticket broker marketplace ( 5/2000) no more re-brokered applications, except from one or two sources, such as Steve Dunham's Leasing Associates (11/98) purchased by GE Capital ) Linc Capital (2/2000 creditors file for Chapter 7 (9/2000 out of vendor and broker business, Nasdaq halts stock sales, $13.4 loss last quarter, 10/2000 assets for sale ) Orix ( 2/2001) Closes re-discount center, Steve Geller says "goodbye." Geller joins Leasing News Advisory Board, receives many accolades from readers ( 11/10) First Six Month Profits up 14% at Orix! ) 11/8 New President at Orix appointed . (10/2000) "long-term Outlook has been revised from Stable to Negative" Credit Alliance that it has changed its name to ORIX Financial Services, 9/2000 Japanese Bank President Commits Suicide (Orix is a 14.7% shareholder in bank having problems ), (8/2000 closes small ticket vendor division in\ Portland, Oregon, "Business as usual (in New Jersey and with brokers)," says Steve Geller) Affiliated Corporate Services, Lewisville, Texas (1/2001) Merges with First Commerce Leasing Advanta Leasing (1/2001 Advanta ceases leasing business announcement 1/2001 Chris Ciarrocchi says "goodbye" Mortgage Division sold, re-affirms Leasing Division still for sale, former prez now at eOriginals,others let go like Kaye Lee.) (9/2000) for sale. Union Bank, San Francisco ( 1/2001 Leasing curtailment/cutback 1/2001 Union Bank, Los Angeles, no more lease purchasing, not confirmed about S.F. yet ) NationsCredit, Business Leasing Group (1/2001) complaints from brokers regarding getting information for NationsCredit and GrayRock Capital on FMV, payoffs, residuals from Textron who is servicing the portfolio )(1/29/99) sold to Textron *** Textron does "broker business." Saddleback Financial ( 1/2001) Prez. Warren Emard announces "... still in business... We are still originating business through vendors and directly to lessees. Does not accept broker business." First Commercial Capital Corp ( 1/2001 to be acquired by TCF Leasing ) First International Bancorp ( 1/2001 ) to be acquired by UPS Capital First State Bancorp, Albuquerque, N.M ( 3/2000 sold leasing division-$64 million---) BSB Leasing ( 1/2001 Don Meyerson bought back the company and they are back in business at 303-329-09227. Official announcement to be made soon. They are notifying brokers to start sending them business again. 12/2000 Don Meyerson says to be "re-born"11/2000 closed to accepting new business.) Affinity Leasing, Washington ( 12/2000 to close and concentrate on Financial Pacific biz ) Banc One Leasing ( 12/2000 Lays Off 60, Closes 5 offices ) Bombardier ( 12/2000 reported having leasing problems, not confirmed, company strong in other divisions, but appears backing out of leasing division ) Capital Associates, Denver, Colorado ( 12/2000 no longer doing business, filing bk? ) Conseco Finance Vendor Service ( 12/2000 purchased by Wells Fargo Leasing). DVI Capital (12/2000 out of broker ) Finantra (11/2000 will eliminate its commercial finance operations in order to focus on its two core finance platforms, consumer finance and services and consumer mortgage lending. ) Dennis Horner (12/2000)acquired by Sandy Spring National Bank, a subsidiary of Olney, MD-based Sandy Spring Bancorp. The Equipment Leasing Company was a unit of Progress Financial of Blue Bell, PA. Metwest Leasing, Spokane Wa. (11/2000 is pulling the plug, confirmed by five sources. 9/2000 advising brokers that they have run out of funds so they are unable to fund a transaction we have there for funding.) Newcourt ( 8/2000 sold off ) Old Kent Financial ,Grand Rapids, Michigan ( 11/2000 Fifth Third Bank, Cincinnati, Ohio announces acquirement, to close second quarter 2001-Gateway Leasing sold to Old Kent in 1997, small ticket leasing specialists ) Resource Leasing, Herndon, Virginia ( 11/2000 MicroFinancial/Leasecomm acquires major portion of the assets.) Signature Leasing, Dublin, California ( 11/2000 no longer in small ticket marketplace; appears to have closed down ). Transamerica ( 11/2000 for sale, but no buyers, so taken off marketplace, no longer for sale ) Varilease ( 11/2000 closed down ) Copelco (10/2000 ceases broker business, many complaints in manner turning off faucet 5/2000 sold to Citibank 10/2000 stock down rated/ ) Matsco Financial (10/2000 purchased by Greater Bay Bank ) T&W, Washington (10/2000 filed Chapter 11. Creditors meeting on 12-4-00 Seattle. Case # 00-10868 US Bankruptcy Court Western District of Wash. 206-553-7545. Debtor Attorney-Marc Barreca 206-623-7580) Balboa Capital ( 9/2000 Founder Pat Byrne "...office available any time he wants to use it" Reported he is no longer "in control" or working "full time" at Balboa, the company he started). Liberty Leasing, Des Moines, Iowa ( 10/2000 closed, selling portfolio, owned by Commercial Federal Bank, Omaha, Nebraska ) Leasing Solutions, San Jose ( bankrupt )(9/2000) Files BK (10/1998 stock loses more than 50% of value in a single day with announcement that auditors were forcing LS to write down the residual values of a small portion of equipment returned for remarketing. After a long stream of announcements of ongoing negotiations, forbearance periods, the establishment of an internet strategy (yes, the lenders let them use cash for that rather than apply it against borrowings!) Bay View Commercial Corporation (Bay View Bank) 9/2000 discontinuing all franchise loan and lease production Charter Financial ( purchased by Wells Fargo 9/5/2000 ) Onset Capital ( 9/2000 Irwin buys 87% equity ) Republic Leasing, South Carolina 9/27/2000 ( "The expected result will be a sale of Republic Leasing"---Dwight Galloway. He adds, "We have always been for sale for the right price, but in thirteen years we have not sold off any leases or gone direct after broker's business, ever." ) SFC Capital ( 9/15/2000 purchased by Trinity Capital ) Lease Acceptance Corp---( 7/26/2000 ceases broker business ) New England Capital ( 6/2000 sold to Network Capital Alliance a division of Sovereign Bank. Sovereign did hire two people who will run a sales office in CT, doing basically the same deals with the same people as before. Little will change in that aspect. Prime Capital, Chicago ( 6/2000 closed ) Scripp Financial ( 6/29/2000 ( purchased by US Bancorp ) Metrolease--( 5/2000 reports closing operation, John Blazek at Evergreen Leasing, Hathcock losing assets, will not confirm nor deny; many serious rumors of serious fraud floating around the marketplace, including debt to Textron |