" **** was a real "people person'. He was the first we hired right after being
an 'in house' 'organization. **** had a lot of imagination... Events and creativity
was much better back then, then recently. I miss him. "
Ron Wagner
Whatever
Happened to....This Wednesday----
Equipment
Leasing Association
"2000
State of the Industry Report"
This
was issued on November 16, where it was predicted "Equipment Leasing Volume Continues
to Surge;Leasing Industry Expected to Grow to $260 billion in 2000 "
Readers
are always asking what they can do to help Leasing News. I think this is a very
important report, and the information behind the headlines is very important to
various segments of the industry, from banks to brokers, funders to finance companies,
lessors to lessees.
If
anyone has read the report, please send us a review, or you comments. If it is
a full review, we will publish in entirety. There will be no changes without your
permission. We will allow "advertising, " meaning the name of your company and
what it does, or signature to your e-mail. If there are several, we will publish
them all, although I think we will be lucky to just get one review.
If there are just comments,we will collect them into one report.
To order a copy of the "2000 State of the Industry" report, please contact Tonya
Clements at 202-293-4168 ext. 577 or e-mail at tclements@promarcagency.com; or
contact Jennifer Shields at 202-293-8563 or e-mail at shields@promarcagency.com.
The
report incorporates information from the Equipment Leasing Association's 2000
Survey of Industry Activity report, proprietary research and analysis as well
as insight from industry experts representing a cross-section of the major lessor
types, ticket sizes as well as vendors to the industry.
With its focus on future trends and their impact on the industry, Equipment Leasing
and Finance Foundation commissioned Financial Institutions Consulting (FIC) to
create this independent report, a competitive analysis of the leasing industry.
Some of the findings were:
* Large ticket (transactions greater than $250,000) and small ticket (transactions
less than $25,000) segments report greater profitability than the middle market
ticket segment.
*
The middle market segment captured 44 percent of all new leasing volume in 1999.
* Among
lessor types, banks were the most profitable segment.
*
Most major lessors have developed Internet strategies to respond to customers'
needs.
Most importantly, the report predicts that with continued growth, the equipment
leasing industry will reach $260 billion for 2000. Which segments: lessor, capital
lessor, on line lessor, broker, super broker, on line super broker, bank large
ticket over $500,000, small ticket under $25,000, middle market or middle-middle
market. One $100 million airplane transaction changes the statistics, such as
a man with one foot in a bucket of ice and one in a bucket of hot water is considered
"fair market value" ---comfortable. In reality, that is not the case.
What
does the report say to you in your industry will help you plan for 2001, whether
it is to "downsize," change your marketplace, add to your marketplace, or discover
new ways to increase your profit.
CapitalStream and Marlin Leasing Team to Offer Online Lease Transactions
Small-Ticket,
High-Tech Equipment Financing Agent Drawn to Infrastructure And Experience of
CapitalStream.com, a Hosted Network With More Than 70 Vendors
SEATTLE,
Nov. 20 /PRNewswire/ -- Capital Stream, Inc., a hosted e-commerce provider of
services and applications for the commercial finance industry, has announced signing
Marlin Leasing Corp. as a new client. Specialists in funding broker and vendor
transactions for small and micro-ticket leasing of medical, office, and technical
equipment, Marlin chose CapitalStream to ensure rapid deployment of services that
will help them scale up to take their business transactions online.
"With
transactions ranging from $1,000 to $150,000, we needed an e-commerce infrastructure
to handle the company's growing volume, now at approximately 1,000 transactions
a week and rising," said Gary Shivers, President of Marlin Leasing Corp. "Based
on prior experience, we knew how daunting it would be to build an online leasing
system on our own."
Said
Steve Campbell, CapitalStream President and CEO, "Marlin Leasing wanted to increase
both customer volume and service via MARLINnet, its online lease transaction processing
center. They saw CapitalStream.com, our hosted environment, as the best way to
get to market in a very short time period."
By partnering with CapitalStream.com's hosted online network, featuring integrated
point-of-sale capabilities, Marlin Leasing ensured that MARLINnet would be up
and running in a short period of time with full, scalable capabilities to address
all their customers' needs. MARLINnet now boasts functions such as application
approval with two hours and funding within 24 hours.
"We were able to leverage our investment in our website by integrating the CapitalStream.com
customer and transaction capabilities into our private-label portal site," said
Shivers. Because of Marlin's desire to expand their market share in the high tech
industry and maintain their investor appeal, they needed to develop their online
infrastructure using assets such as MARLINnet. This e-commerce initiative also
needed to happen quickly in order to maintain Marlin's desirability to these two
critical groups.
As
a customer of CapitalStream, Marlin Leasing will be able to ramp up customer volume
for a greater share of the high tech leasing market and continue with its goal
of being full-fledged leasing partners. CapitalStream.com is a hosted e-commerce
site combined with a Web-based toolset that enables finance companies, manufacturers
and B2B e-commerce companies to integrate financing at the point-of-sale, reach
a wider range of financing partners, and automate credit management and workflow.
About
Marlin Leasing Corp.
Founded
in 1997, Marlin Leasing is a major competitor in the small-ticket equipment leasing
market. Through its corporate headquarters in Mount Laurel, NJ, and two divisional
offices in Colorado and Georgia, the company provides creative funding programs
for vendors, brokers and end-users nationwide.
For
more information, visit their web site at www.marlinleasing.com.
About
CapitalStream
Seattle-based CapitalStream is a leading provider of hosted e-commerce solutions
-- including customer program management tools, workflow automation, and an online
transaction network -- for the global commercial finance market. The company's
e-commerce solution, CapitalStream.com, provides the infrastructure that enables
private label and customer managed online capabilities for finance companies,
manufacturers and B2B e-commerce companies to capture, grow and service customers.
CapitalStream has been an established industry leader for over five years, and
has helped several hundred financial organizations increase their competitiveness,
customer service and profitability.
For more information, visit their web site at www.capitalstream.com.
SOURCE
Capital Stream, Inc.
CO: Capital Stream, Inc.;
Marlin Leasing Corp.
ST:
Washington, New Jersey
CMSI Named One of Maryland's Fastest Growing Technology CompaniesIn Deloitte &
Touche 'Fast 50' Program
ANNAPOLIS
JUNCTION, Md., Nov. 20 /PRNewswire/ -- Credit Management Solutions, Inc. (CMSI)(Nasdaq:
CMSS) has been named to Deloitte & Touche's prestigious "Fast 50" Program for
Maryland, a ranking of the 50 fastest growing technology companies in the area.
Rankings are based on percentage of growth in revenues from 1995-1999 (five-year
period).
For
over a decade, CMSI has been a premier provider of credit automation software
and services, including online lending and leasing technology. Its products and
services have been the choice of leading financial institutions -- and other industries
-- throughout the United States and Canada.
CMSI's President and CEO Scott Freiman attributes CMSI's selection as a Fast 50
company to its solid track record coupled with its innovation. "We've succeeded
in developing proven solutions for some of the nation's most prestigious companies,"
said Freiman. "Additionally, our e-commerce division has developed cutting-edge,
Internet-based products and services for all types of business models."
"In today's fast-paced world of technology, where multi-million dollar technology
companies seem to appear overnight, it's an honor to be named one of the fastest
growing technology companies." said Gary Tabach, Partner in Charge, Tech-Comm.
Practice, Deloitte & Touche. "We commend CMSI for making the commitment to technology
and delivering on the promise of market longevity."
To
qualify for the Fast 50, companies must have had operating revenues of at least
$50,000 in 1995 and $1,000,000 in 1999, must be public or private companies headquartered
in Maryland; and be "technology companies" defined as companies that produce technology,
manufacture a technology product, or devotes a high percentage of effort to research
and development of technology.
Winners
of the 22 regional Fast 50 programs in the United States are automatically entered
in the Deloitte & Touche Technology Fast 500 program, which ranks the nation's
top 500 fastest growing technology companies. For more information on the Fast
50 or the Fast 500 programs, please visit http://www.fast500.com .
About CMSI
Since it was founded in 1987, CMSI has been a premier provider of credit automation
software and services, including online lending and leasing technology. The Company's
e-commerce subsidiary, Credit Online, Inc., credit- enables business-to-business
transactions through its Internet gateway and its patented CreditConnection technology
(www.creditconnection.com), which links credit originators such as automobile
dealers and borrowers with an extensive network of leading prime and non-prime
lenders. Through its CMSI Systems, Inc. subsidiary, CMSI licenses credit decisioning
and other automation systems and services for consumer and business credit that
have been the choice of the world's largest and most demanding lending institutions.
CreditConnection and CreditOnline are trademarks or registered trademarks of Credit
Management Solutions, Inc. For additional information on CMSI, please visit http://www.cmsinc.com
.
About
Deloitte & Touche
Deloitte
& Touche, one of the nation's leading professional services firms, provides assurance
and advisory, tax, and management consulting services through 30,000 people in
more than 100 U.S. cities. The company is part of Deloitte Touche Tohmatsu, a
global leader in professional services with more than 90,000 people in over 130
countries. Deloitte & Touche refers to Deloitte & Touche LLP, Deloitte Consulting
LLC, and related entities. For additional information, please visit Deloitte &
Touche's Web site at http://www.us.deloitte.com .
Press
releases and other CMSI information can be found on the Web site: http://www.cmsinc.com.
This press release contains forward-looking statements. All forward- looking statements
involve risks and uncertainties, including, without limitation, the risks detailed
in CMSI's filings and reports with the Securities and Exchange Commission. Such
statements are only predictions and actual events or results may differ materially.
SOURCE
Credit Management Solutions, Inc.
CO: Credit Management Solutions, Inc.; Deloitte & Touche
ST:
Maryland I
N:
CPR FIN MLM
SU:
On Line Board Representation---Perhaps the only association with an On Line Director
on its board---
LENDX
EVP to Serve on Board of Equipment Leasing and Finance Foundation LENDX EVP of
Lender Services, Lou Vigliotti, recently was elected to various positions for
the Equipment Leasing Association (ELA) and the Equipment Leasing and Finance
Foundation. Vigliotti, who has over seventeen years of experience in equipment
finance, will serve on the Board of Trustees of The Equipment Leasing and Finance
Foundation, and on the Middle Market Steering Committee of the Equipment Leasing
Association (ELA). The Equipment Leasing and Finance Foundation was founded by
the ELA as the nation's foremost institution promoting and developing information
about equipment leasing for the business, academic and public policy communities.
As a member of the Board of Trustees, Vigliotti will play an active role in advising
the institution regarding its continued contribution to the equipment leasing
industry, through research, education, publication, and other initiatives that
promote the equipment leasing industry.
In addition to his election to the
Board, Vigliotti was recently invited to become a member of the Equipment Leasing
and Finance Foundation's Industry Future Council, which meets annually to discuss
and report on issues impacting the future of equipment leasing. The board's Industry
Future Council Report is a widely read publication that industry insiders utilize
to determine new trends within the industry. Vigliotti was also elected to serve
on the ELA's Middle Market Steering Committee, which provides leadership on issues
of special importance to the middle market equipment leasing community.
Tougher Audits to Follow
Credit
Woes Caught Big Banks Off Guard
By Rob Garver, American Banker
Despite
near-constant warnings from regulators, large U.S. banks failed to anticipate
the problems now roiling their commercial loan portfolios, the Federal Reserve
Board said. The central bank's third-quarter survey of senior loan officers found
that among banks with $20 billion or more of assets, 64% said deterioration of
their business loans in the past two years had been worse than expected. That
includes 14% who characterized the weakening as "much greater" than predicted.
The Fed also surveyed foreign banks operating in the United States and found
that 56.5% reported surprise at the increases of commercial credit delinquencies.
"That loud clicking sound you hear is banks ratcheting up their lending standards,"
said Kevin M. Blakely, executive vice president of Cleveland-based KeyCorp.
Smaller
banks reported less surprise at the increase in commercial loan delinquency rates.
Half the respondents from banks with less than $20 billion of assets said the
deterioration had been in line with expectations, and 30% said it was higher than
expected. Only 5% of the smaller banks called the increase in delinquencies "much
greater" than expected.
The survey results came out two days after Credit
Suisse First Boston analyst Susan Roth predicted that worries about bad loans
could drive bank stocks down as much as 25% in coming months. Both First Union
and Bank of America shocked the markets by warning that they expected larger than
usual loan chargeoffs in the fourth quarter. Each principally blamed a single
bad loan to a large company.
Blakely of KeyCorp said that because the secondary
market for loans was so liquid in the mid-1990s banks were able to get away with
looser underwriting standards. But when the market for low-grade credits began
to dry up, he said, "loans that you used to be able to refinance began sticking
to the books."
Regardless of their warnings the last few years, regulators
were lenient about enforcing credit-quality standards before default rates began
rising, Blakely said. And it is the loans made two or more years ago that are
beginning to go bad. "The thing about the regulators is that in 1997 and 1998
they were beating the drum about credit quality but it was just rhetoric," he
said. But this year, particularly in their annual examinations of large banks'
syndicated loans, they stopped beating the drum and started beating the banks
over the head with the drumsticks," he said. "They are definitely getting a lot
tougher."
Caught by surprise by the decline in credit quality among commercial
borrowers, banks are responding with tighter standards for initiating loans, though
demand for commercial credit is reportedly dwindling.
Of all the banks surveyed,
35.1% reported a decline in loan demand from large and middle-market companies;
only 12.3% reported an increase. The decline was more dramatic at large banks,
where 45.2% reported weaker demand. Demand for loans by smaller businesses was
down at 25.5% of the banks surveyed but up at 12.7%.
Just over half the large
banks and one-third of small banks reported that, despite the decline in demand,
they have tightened terms on loans to large and middle-market firms. One-third
of large banks and 23.1% of small banks reported tightening loan terms to small
companies. Among the most common changes in loan terms were increased interest
rates, premiums on risky loans, and fees for credit lines. Borrowers most affected
by the changes include those with no prior relationship with the institution and
those trying to finance mergers and acquisitions. Most respondents also reported
that standards are only going to get tighter. Slightly more than 50% said they
expect to raise the bar still higher before the end of 2001.
No surprise there,
said John Mingo, managing director of the credit risk consulting firm Mingo &
Co. "Banks look at marketwide default rates rising; they know it is likely that
the current economic boom is going to come to an end; so they tighten underwriting
standards and widen spreads," he said. Mingo, a former senior adviser to the Federal
Reserve Board, said that though the numbers may look bad, there is no reason to
worry about widespread bank failures such as those that occurred when default
rates soared in the late '80s and early '90s. "There is nothing in the data that
suggests that the coming nonboom times are going to be worse than the last recession,"
he said.
"Banks are a lot better capitalized than they were a decade ago,
and it is reasonable to say that they understand credit risk measurement and management
better than they did a decade ago."
DecisionNetworks Selects eCredit.com Global Financing Network as Online Financing
Platform; Seller of PCs and Internet Services Leverages Real-Time Financing for
Rapid Growth
DEDHAM,
Mass.--(BUSINESS WIRE)--Nov. 20, 2000--eCredit.com today announced DecisionNetworks,
Inc. is "live" with the eCredit.com Global Financing Network(TM). DecisionNetworks,
a leading provider of affordable and accessible private-label computing and Internet
connectivity, is using the network to quickly respond to consumer requests for
financing for the DecisionNetworks Standard Package, which bundles a PC, monitor
and 36 months of Internet service for as low as $25.99 per month.
The
company also plans to leverage the eCredit.com network as its online financing
platform for future business initiatives - including services targeted at the
business-to-business market - drawing on the speed and reliability of the network
to deliver the financing DecisionNetworks' customers want in real time.
"Our
vision is to deliver to our clients' members the very best in high-technology
and customer service, simplifying the Internet and computing experience for everyone
who wants to get online," said Steve Arbeit, CEO at DecisionNetworks. "Offering
unparalleled member care means making it easy and affordable for customers to
join our network, and eCredit.com arms us with the real-time financing tools to
fuel fast growth and an exceptional customer experience."
Added
John Clark, CFO at DecisionNetworks, "Working with eCredit.com is helping us fulfill
our mission of lowering the barrier to entry for new buyers of computers and Internet
services through affordable financing. eCredit.com not only introduced us to a
new financing partner, MBNA, that understood our needs, but has also provided
the breakthrough services to automate the financing process, giving us a significant
leg up on our competition. With its combination of speed, scalability, and flexibility,
we see the eCredit.com Global Financing Network as an enabler of our business
strategy today and in the future."
According
to Peter McKay, president at eCredit.com, "DecisionNetworks is an aggressive company
that understands how potent a weapon financing can be in driving customer satisfaction
and profitability. By outsourcing its financing process to eCredit.com, DecisionNetworks
is building the foundation to service more buyers, more quickly and with fewer
people, freeing it to focus on sales and marketing strategies to drive long-term
growth."
The
eCredit.com Global Financing Network connects businesses to global information
sources and financing vendors so credit and financing decisions can be processed
online in real time. The Network combines automation of the entire credit decision
process with automated access to multiple financing vendors. These capabilities
can boost the number of customers that can be approved for credit or financing,
increasing sales and revenue. Additionally, financing partners gain access to
a scalable and low-cost customer acquisition channel that provides financing opportunities
that match their lending preferences. eCredit.com has an extensive partner network
of financing vendors that provides a full range of services, covering consumer,
small business, factoring and commercial lending as well as leasing solutions.
About DecisionNetworks
DecisionNetworks markets private-label PCs and Internet service and e-commerce
optimization software to help online businesses improve brand penetration and
return on investment. DecisionNetworks is based in New York City. For more information,
please see www.DecisionNetworks.net.
About
eCredit.com
eCredit.com
is a leading provider of credit, financing and receivables management solutions
for Fortune 500, diversified financial services and e-commerce companies. Its
software solutions and services run on the eCredit.com Global Financing Network,
an Internet-based platform that connects businesses to financing partners and
global information sources in real time at the point-of-sale. Included among the
Company's customers are Eastman Chemical, FleetBoston Financial, Gateway, Ryder
System, Inc. and insuranceOrder.com (a subsidiary of Trilogy Software). eCredit.com,
headquartered in Dedham, Mass., is a partner company of Internet Capital Group
(NASDAQ: ICGE). For additional information, visit eCredit.com on the Web at www.ecredit.com.
The
eCredit.com logo and eCredit.com Global Financing Network are trademarks of eCredit.com.
CONTACT:
eCredit.com
Roopa Bhide
(781) 752-1275
roopa@ecredit.com
CONTACT:
Porter
Novelli Convergence Group
Albie Jarvis/Dan Mees
(617) 450-4300
dan.mees@pnicg.com
KEYWORD:
MASSACHUSETTS
