January 29, 2001
Inside Advanta Leasing
I was an employee of Advanta about 2.5 years ago, but I still know plenty (one of my best friends) of people that worked there. From what I have heard Advanta thought the sale of their mortgage division was going to net them approximately $300 million, instead Chase Manhattan bought it for $1.5 billion. Upon this news they felt they could shut down their "non-profitable" leasing division as a tax write-off and have plenty of money to give out generous severance packages. On Tuesday (1/23/01) they shut their doors and the employees had no idea. My pal, who worked there for 8 years was in a state of shock. Advanta called all employees into the cafeteria and told them of the shut down and asked them to leave by 1pm. They are not funding any more transactions, approvals or not. I have heard that when you call there that people are told the employees are still there. That is inaccurate. Only customer service ( a skeleton crew) and collections remain. Advanta will be paying their employees through April 17th (very generous), then the severance packages start based on your time of employment. I know people that are essentially paid their base salary through November. In all fairness, Advanta employees did not know of the pending closing, so please take a grain of salt when hearing those rumors. The company may have shut down but many of those people were the best and deserve jobs again in this industry.
Name With Held
+ + +
I just spoke with Michele in the 'funding dept' at Advanta regarding 1 deal we have approved with them. She indicated that they will accept documents for approved deals thru 2-26-01 for funding for all Brokers. I reached her by calling Bill Beard's old number 800-357-3676, X3718. There are 3 'funding girls' there finalizing the funding of approved Broker deals thru 2-26-01. Please call her to confirm and help resolve your concern.
Good luck. Joel Addiosn
- Vendor Leasing Financial Svcs, Inc.
+ + +
They also confirmed that when they left everyone go on Tuesday they did not have right people retained to process the funding checks. The transaction were ready to fund buy no one was available to sign off on checks. That has been corrected and they expect to have all checks out next week and will fund per the letter.
Also confirmed that everyone was given very generous severance packages.
+ + +
FYI.,.,just spoke to a former long time Advanta ex-employee. Told me that employees were treated very well and given very generous severance packages. It's a departure from what most companies exiting our industry have done.
Media Capital Associates,LLC
(800) 836-7753 ext. 104
+ + +
I would like to concur with the remarks made by Ted Pritchard of Smokey Mountain Funding, Inc regarding the demise of Advanta. I can't say that I am fully aware of the circumstances that caused their swift exit from the leasing business but will always carry a favorable impression of every employee that I had the pleasure of dealing with.&; They were competent and congenial (a rare quality) and followed through as promised every time.&; Hard to believe that there's not a market for a company with those traits.
Rave Financial Services, Inc.
Sierra Cities--It was Me!!!
Broker Business---Yes, that was me on the Yahoo Chat line. There was misinformation that Sierra Cities was not interested in broker business. That is not true. They have signed more than 50 brokers, I am told by an insider source (not Len Baccaro). They are also actively look for "inside sales people," as evidenced by this e-mail appeal from Len Baccaro:
Hi Kit. We are looking to hire 10-15 sales reps, so if you get any inquires, please let them know that they can call me directly. Thanks for the great newsletter.
Len Baccaro, Vice-President
(908) 722-1992 ext. 114
(201) 650-0743 - mobile
First Sierra Financial
UAEL Symposium Reports from Readers:
Dear Kit: We attended the UAEL Funding Seminar on Friday in Costa Mesa, CA. The attendance was great! I have never seen such a busy, "noisey" room of funders and brokers. Everyone was up beat and positive despite the "interesting" times in the industry. The training seminars where also informative.
A side note: I was at the Nixon Library once and saw the introduction film where Nixon himself comments on his public life. As you will note the Library was completed before he died. In the film he comments that he made several mistakes in his life but he never stopped trying to improve the world and bring peace to the nations. The world stage he worked on is not the same as the leasing industry but the spirit applies, never quit, if you do you will never win because if you quit you can never cross the finish line!! Just as back in the early 90's when the world thought American business had dropped behind Japan, we kept moving forward and Japan is still in a recession!! It is just time to reconfigure and move forward again, stronger and wiser!!!
+ + +
I went to the UAEL Funding Retreat today that was held in Costa Mesa. There seemed to be a lot of people there, however the funding source list was light. The majors were there. They had a sign up sheet for times between 9:00 AM and 12:00 PM. We had a little bit of weather problem and we arrived at 8:40 AM. By the time we got there all of the spots were filled up. I was able to visit with several people and many of the funding sources. It seemed to be well organized and I saw some people that I haven't seen for a while. It was a solid net-working opportunity except for the fact that everything was booked. As a result I did not stay and I forfeited my lunch and the afternoon workshops. Because I didn't attend the whole day I can not say how much quality happened there. It was a typical UAEL function. I have felt for a long time that the only value to be had at UAEL functions is that of shaking hands and standing eye-ball to eye-ball with people you depend on and compete with. I had a couple of very rewarding conversations. It was worth the money ($205.00 for two of us) even though I was only there 2 hours.
Association Meetings in February http://www.leasingnews.org/meetings.htm
_ Equipment Leaisng Association
February 4-6, 2001
Conference and Exhibition
Program available at:
for complete list of meeting:
EAEL/NAELB February 5th Joint Meeting
One Day, all Business Broker/Funding Meeting, Atlanta Marriott Hotel February 5th ( actually there is a get acquainted evening available on February 4th ).
To learn more:
This is a joint meeting of the Eastern Association of Equipment Leasing and the National Association of Equipment Brokers. You can also get the registration form on line. http://www.leasingnews.org/Reg-form.htm
United Association of Equipment Leasing
Sheraton Dallas Brookhollow
1241 W. Mockingbird Lane
Dallas, Tx. 75247
for further information, go to: http://www.uael.org/events/retreats/
United Assoication of Equipment Leasing
Washington Athletic Club
1325 Sixth Ave
Seattle, Wa. 98111
for further information, go to: http://www.uael.org/events/retreats/
Ross McDonald, Not John McDonald
I am offering a literary correction, if you do not mind. Kenneth Millar wrote as "Ross MacDonald" who created the character Lew Archer. He lived in Santa Barbara and his stories often took place in the fictional town of "Santa Theresa", which was a thinly disguised pseudonym of his town. Paul Newman played the character in two films under the character name "Harper" in the film of the same name and in "The Drowning Pool". Millar died in the early 80s of Alzheimer's Disease. I was a big fan. John McDonald created the detective character "Travis McGhee" in a prolific series of novels that always had a color in the book title (such as "Cinnamon Skin"). He died in the 80s as well, and lived here in Florida.
( Thank you, I will correct this in case I use again next year. Ross McDonald was one of my favorites. I have a quote from one of his lesser works under the glass of my desk: "How can a desire to help someone be wrong?" " You have to judge things by their consequences." from "Meet Me at the Morgue." editor ).
Affiliated Corporate Services Merges With First Commerce Leasing
Glad to hear Lahti is "very popular". Who wrote this, Jim's mom?
(800)699-3539 ext. 25
"Mr. Lahti is past-president of the United Equipment Leasing Association and active at conferences with the National Association of Equipment Lease Brokers. He is very popular. He is a very well-known Dallas Cowboy fan, too."
( Very funny, Jeff. Ironically, it was written by a 49er fan: me. editor )
I was going to hold this off for Firewall, but if you want to see the Superbowl Commercials ( I thought the Bob Dole/Pepsi was the best ), go to www.adcritic.com Streaming Video/Audio
Of course, one of the funniest is Clinton's Last Days ( what he made for the press corp before he left---a home video )
Tech Data Enhances Leasing Opportunities with Deutsche Financial Services
CLEARWATER, Fla., Jan. 29 /PRNewswire/ -- Utilizing online capabilities, Tech Data Corp. (Nasdaq: TECD) has expanded its relationship with Deutsche Financial Services (DFS) to include the company's technology leasing group as part of a comprehensive financing program for resellers. Designed to expedite approvals and reduce shipping time for new equipment, the DFS solution will provide resellers with a financing alternative.
Through the integration of DFS and Tech Data's Internet commerce capabilities, credit application, pricing and lease documentation will be completed online at www.techdata.com. "By providing leasing services via the Internet, we can offer resellers a viable financing alternative and cut time and paperwork out of the process. It has become a seamless endeavor," said Mike Zava, vice president, U.S. credit services, Tech Data.
The consolidation of the technology distribution industry has minimized credit opportunities, making it difficult for resellers to find financing for significant orders. "At a time when many resellers are having challenges finding credit that doesn't cannibalize their profit margins, leasing is a flexible tool. Resellers seeking alternatives for financing are able to take advantage of the newest equipment without sacrificing essential capital," said Paul O'Keeffe, senior vice president of the DFS technology leasing group.
About Deutsche Financial Services
Deutsche Financial Services, based in St. Louis, Missouri, is a unit of Deutsche Bank Group, one of the world's largest financial institutions. Deutsche Financial Services has operations throughout the United States, Canada and Europe and conducts nearly $40 billion annually of equipment financing activities. DFS' Technology Leasing Group acts as a full-service leasing company dedicated to providing financing for commercial end users acquiring technology equipment and services from resellers and other companies in the channel. For the past ten years, DFS has provided inventory and accounts receivable financing to Tech Data's reseller customers. Information about DFS may be found on at www.dfsc.com.
About Tech Data
Tech Data Corporation, founded in 1974, is a leading global provider of IT products, logistics management and other value-added services. The Fortune 500 company and its subsidiaries serve more than 100,000 technology resellers in the United States, Canada, the Caribbean, Latin America, Europe and the Middle East. Tech Data's extensive service offering includes pre- and post- sale training and technical support, financing options, configuration and assembly services as well as a full range of award-winning electronic commerce solutions. The company generated sales of $17 billion for its most recent fiscal year, which ended January 31, 2000.
SOURCE Tech Data Corporation
eMarket Capital Launches Professional Services Group
Provides Systems Integration, Web Development and Training to B2B Customers
KING OF PRUSSIA, Pa., Jan. 29 /PRNewswire/ -- eMarket Capital Inc. (http://www.emarketcapital.com), a business-to-business leasing service, has expanded its menu of customer services by creating a Professional Services Group to offer systems integration, web development and training beyond the core private-label lease marketplaces that eMarket Capital provides to equipment manufacturers at no charge.
"A lot of professional service firms try to be all things to all people. We're about being just what our customers need, just when they need it," said Jeffrey S. Whitcomb, a founder of eMarket Capital and Vice President of Professional Services. "Creating a Professional Services Group is a logical expansion of our business, given that our software product was developed internally and we have the expertise to enhance it to match a customer's special requirements," he added. The Professional Services Group is available to manufacturers who use eMarket Capital's services to create private-label leasing web sites for their customers.
"Services are easy to obtain," Whitcomb said. "For example, a company that wants Web development services beyond our out-of-the-box solution typically makes the request early in the 'getting to know you' phase. We like to make sure they are making the best use of the base system before we propose new functionality, but within a couple of months, we typically outline several projects that meet our customers' specific needs."
Before the group was created, Whitcomb recalled, "eMarket Capital had to subcontract the extra work or the customer had to hire a different company to provide it. Now, we can offer one-stop shopping for value-added services."
Jonathan Moran, eMarket Capital's founder and president, said, "The Professional Services Group is a perfect fit with the eMarket Capital business model. The group makes it easier for customers to get the supplementary services they need, and outstanding customer service is at the heart of everything eMarket Capital does." 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.
eMarket Capital's patent-pending Web-based process enables equipment manufacturers to help their customers secure fast, fair, competitively priced lease financing plans for their purchases. The service is free to both manufacturers and their customers. Lenders pay a below-market origination fee only when they complete a deal through one of the Web sites.
Customers fill out a single application to receive multiple offers within three business days. Offers are submitted to the customer in a format that simplifies the process of making an "apples-to-apples" comparison.
The service targets capital equipment purchases from $5,000 to $1 million. Transactions in this range are most easily adapted to the Internet, and they represent over 50 percent of the overall market, which is expected to grow 5 to 8 percent a year.
For more information visit the company's Web site at http://www.eMarketCapital.com.
SOURCE eMarket Capital Inc.
CO: eMarket Capital Inc.
E-Finance Makes Leasing Available At SYNNEX Information Technologies, Inc.
FREMONT, Calif.--(BUSINESS WIRE)--Jan. 29, 2001--SYNNEX Information Technologies, Inc., an IT design-to-distribution services company, today announced it has initiated an on-site, full-service leasing department to assist value-added-resellers (VARs) with end-user financing. SYNNEX leasing has a variety of programs that can be tailored to the customer's individual needs.
According to Mike Thomson, Vice President of East Coast Sales for SYNNEX, "Thirty-five to forty percent of all IT purchases are leased by the end-user. Leasing equipment makes sense because it is beneficial to both resellers and end-users. First, it is easier for resellers to sell installment buying (where the customer makes monthly payments over a period of time) rather than paying the entire cost up front. Second, it allows end users to focus on the payment and not on the price of the equipment."
Brian Duncan, Leasing Manager in SYNNEX's Greenville, SC, office reiterates J. Paul Getty's famous quote, "if it appreciates, buy it. If it depreciates, lease it." He adds that those words of wisdom are a good rule of thumb to follow especially in the ever-changing technology field. "Here, at SYNNEX, we can handle the entire transaction for resellers and end users from providing lease quotes, to application approval, and finally, to the contract that seals the deal. It is a great advantage for everyone because it allows the reseller to acquire more repeat business by selling new technology when the current lease ends. In addition, lease expiration reports allow the reseller to know when leases are expiring so they can contact the customer in advance."
Duncan outlines features of the program as:
-- No application or financial information on the end-user; however, the company name, address and telephone number are required. As a result, resellers can close more deals on the spot;
-- Approvals of up to $150,000 in less than one hour;
-- No down payment;
-- No security deposits;
-- Faxable lease contracts;
-- Software, services and freight can be financed;
-- State and local government plan;
-- Educational plan.
Other products and programs include master leases, deferred payments, skip/step leases and personal guarantees.
"By universally including leasing in the sales process, the VAR can significantly increase his/her credibility. Customers perceive VARs as consultants rather than salespeople," Duncan states. "Customer benefits include fixed costs which are easier to budget. Unlike bank loans, which can have interest rates, monthly payments are fixed throughout the term of the lease. Tax advantages and conserving capital are other major benefits," he adds. "For instance, true leases, unlike loans should be 100 percent tax deductible as an operating expense; and a SYNNEX lease generally requires no down payment or security deposit. It also helps customers avoid a large cash outlay initially; but, perhaps the biggest benefit of all," he comments, "is protection against obsolescence. Customers can trade up to an updated piece of equipment any time throughout the course of the lease or they may acquire new equipment at the end of the lease for a nominal fee."
Another new feature at SYNNEX is the LEASELINE program. Under this program, VARs can sell to end users on a SYNNEX lease and purchase products without regard to credit limits or terms.
LEASELINE is similar to having an additional line of credit. With an approved SYNNEX lease application, SYNNEX will ship the order (the equipment becomes part of the lease) regardless of normal credit terms. "With leasing, there is no cash out of the customer's pocket and no need to tie up credit lines or flooring accounts," says Duncan.
Founded in 1980 and headquartered in Fremont, CA, SYNNEX Information Technologies, Inc. provides a comprehensive range of design-to-distribution services to original equipment manufacturers (OEMs) and value-added resellers (VARs) on a global basis. The company has strong expertise in electronics manufacturing services, IT distribution and information technology support services.
SYNNEX works with leading industry suppliers in PCs and servers, motherboards, CPUs, memory, storage, networking, communication and component products. Additional information about SYNNEX can be found on-line at http://www.synnex.com .
Statements in this release that are forward looking involve known and unknown risks and uncertainties, which may cause the Company's actual results in future periods to be materially different from any future performance that may be suggested in this release.
The company assumes no obligation to update any forward-looking statements contained in this release. SYNNEX and the SYNNEX logo are trademarks of SYNNEX Information Technologies, Inc. or its subsidiaries and should be treated as such. All rights reserved. All other company names mentioned herein are trademarks of their respective owners.
SYNNEX Information Technologies, Inc.
Garnette Bane, 864/289-4206