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Venture Funders/Story Credit
http://two.leasingnews.org:80/imanges_uael_wael/10_22_03_pic9.jpg John
Pritchard, Vencore Solutions,Russ Wilder, Atel Leasing,Peter Eaton,
Pentech Financial. Pritchard said his company starts at $50,000,
buy rate 11% to 14% and
often tops out at $250,000, rarely goes higher, but has, pays brokers
two points; Eaton
said his company starts at $250,000 and goes much higher, quite often,
11% to
18%, and higher, but most between 13 ˝ to 14%, pays two points; Wilder says
Atel like $1 million and above, writes $10 million, has plenty of money, wants
more venture deals, rates go from 11% but are mostly higher, and pays two
points. Soft costs, industry, and other factors change
rates and terms, but
mostly three years for all, rarely four years.
Venture business is growing. They
rely mostly on talks with the major VC investors to insure they may put
more money in, if necessary, and visit customers, plus heavy due diligence. There
were several pictures Kit Menkin took that were not very good, and
unfortunately, the ones with Archie Julian ( wearing a tie, rare)
where he
looked goofy. “Go
with the goofy one,” “ Archie responded when told about the pictures. “
Hopefully I can show people I'm not goofy in real life.” JulianA@ExchangeBank.com
http://two.leasingnews.org/imanges_uael_wael/archie_and_pierre.jpg We
were able to procure this picture from Archie’s wife, Sue: Archie
with his dog Pierre. Dumac Leasing
is owned by Exchange Bank and
their territory today is Northern California (maybe Southern California in
the future.) $20,000 and above with bank credits and rates, but they are
specialists in “story credits,” meaning not letting Faire Issac scoring make
their credit decisions. They
look at cash flow, personal net worth,
reasons for a loss such as losing a major customer, divorce of partner
or mate, move to a new location, and want to understand the business
and predict the payment of their lease request.
Peter Eaton says
Pentech’s minimum is $250,000 and they look at all types of credit,
study the business, visit the applicant, and spend a great deal of
time to make their credit analysis with rates from 11% on up, mostly
14% and 18% buy rates with two points to the broker.
http://two.leasingnews.org:80/imanges_uael_wael/10_22_03_pic4.jpg Doug
Houlihan, Director of Marketing , for Allegiant-Partners, Ben
Carlile, President, with Scott Enbon, Credit Administrator .
Carlile
also brought his Director of Sales, Paul Foster, not pictured here. They are
setting the national market a fire with their “story credit” program, doing
“A,” “B” credits, but specializing in “B-“ and “C.” “Story
credits are the reason we're in business!” Ben
Carlile Allegiant
Partners Inc. 999
5th Avenue, Third Floor San
Rafael, CA 94901 Phone: (415) 257-4200, x202 Fax: (415) 257-4201 Here
is one of the “hand outs” that Allegiant Partners passed out. This one outlines
their definition, how they evaluate these credits, and their process. It
is best to open Adobe acrobat first, then download this file: http://two.leasingnews.org/loose_files/Allegiant.pdf
http://two.leasingnews.org:80/imanges_uael_wael/10_22_03_pic8.jpg Attorney
Victor Harris, bon vivant, “go get ‘em” attorney and nice guy with
Bob Teichman, CLP, Teichman Financial.
He is on the Leasing News
Advisory Board and is the correspondent for this event
http://two.leasingnews.org:80/imanges_uael_wael/10_22_03_pic1.jpg Bruce
Harrison, McCue Systems, Ben Carlile, Allegiant-Partners, Marty
Garrett, McCue Systems. McCue
does not often go to these
regional conferences, but since both Pentech Financial and Allegiant-Partners
are there new customers with the “Bronze plan,” they
decided to come and learn more about this market. Evidently their
new software has this module that allows for growth to their larger
more sophisticated software systems
and this is basically a
new marketplace for McCue.
http://two.leasingnews.org:80/imanges_uael_wael/10_22_03_pic2.jpg Allen
Jensen,Lease2Loan, came from Arizona just for the conference (
and the wine, he added) with Kevin May of GATX, San Francisco.
http://two.leasingnews.org:80/imanges_uael_wael/10_22_03_pic10.jpg Paul
Knowlton, Bank of Walnut Creek, Jake Krist, former VC investor/lessor, not
producing non-profit Ocean Film Festival in San Francisco.
http://two.leasingnews.org:80/imanges_uael_wael/10_22_03_pic6.jpg Juliet
Child and Karen Weaver of Phoenix American Financial Services, two
of the team that offers back office and other services at very low costs
and terrific customer service.
http://two.leasingnews.org:80/imanges_uael_wael/10_22_03_pic3.jpg Joe
Woodley, CEO of UAEL, who was there to brag about the attendance and
success of the recent Portland, Oregon conference, plus growth of his
organization, ( and to see he many friends in the Bay Area, with Steve
Crane, Bank of the West Leasing, Bill Grohe, UAEL membership director,
who was a great help in calling around, reminding people to
attend and get more involved.
http://two.leasingnews.org:80/imanges_uael_wael/10_22_03_pic5.jpg Brad
Dunham, son of one of the founders of UAEL, Steve Dunham. Brad
runs Leasing Associates right here in San Jose.
http://two.leasingnews.org:80/imanges_uael_wael/10_22_03_pic7.jpg Margaret
and Kathy. Normally you don’t salute the people who take care
of the food and wine, but they were terrific.
As a side note, I don’t
know how this group of 31 drank five bottles of 1995 Duckhorn Mt.
Howell Merlot, six bottles of 1999 Lamborn Mt. Howell “Solar” Zinfindel and
seven bottles of 1999 Chateau Woltner Mt. Howell Chardonnay, Frederique Vineyards. We actually ran out of wine at 6pm, starting
around 3:30pm and
ending after 7pm. Food was all gone, including all the various
cheese. E-mail
Addresses: Ben
Carlilie bcarlile@allegiant-partners.com Peter
Eaton Archie
W. Julian John
Pritchard Russell
H. Wilder UAEL
“Two Panels” Regional Meeting October 22, 2003 By Robert Teichman, CLP “This year, Bob Teichman, CLP,
celebrates his 40th year in the leasing business, having
started in automobile leasing in 1963.
He provided funding for lease brokers for over 20 years as an
officer of such funders as Belvedere Equipment Finance and New England
Capital. His company, Teichman Financial Training, founded in 1998,
is located in Sausalito, California and provides lease education and
consulting services to lessors, funders, brokers and other members of
the financial community. “Bob is active in industry affairs.
He currently serves as a board member of UAEL and was, for three years,
chairman of their Education Committee. Bob is also on the Leasingnews
Advisory Board and was recently elected to serve on the Board of Directors
of the CLP Foundation.” A
group of 32 leasing professionals, representing all segments of the
equipment leasing business, enjoyed an evening of networking, knowledge
and noshing at UAEL’s “Two Panels” Regional Meeting in San Jose, California
last night. The
event was hosted by Kit Menkin, American Leasing, who provided excellent
wines from his cellar and delicious hors d’oeuvres. Attending were almost
an equal number of lessors, brokers, funders and service providers.
As in most recent meetings, such as the recent UAEL Annual Conference
and Exhibition in Portland, OR, energy and optimism were high, and attendees
have seen recent increases in business. As
the attendees rose and introduced themselves, it became clear that many
had been in the leasing and financing business for a long time, in some
cases up to forty years. However, as Joe Woodley, Executive Director
of UAEL, remarked, many new people are entering the equipment leasing
business, including new funders. Peter
Eaton of Pentech Financial, John Pritchard of Vencore Solutions and
Russ Wilder of Atel Leasing presented an interesting and well-received
panel on “Venture Leasing”. Representing all aspects of the field, from
small ticket to large, and from early stage venture-backed companies
to more mature ones, the panel generally agreed that the market for
venture leasing has improved since the drop-off in 2001 and 2002. More
qualified companies are appearing and more venture capital companies
are starting to invest again. Archie
Julian of Dumac Leasing (Exchange Bank), representing the small-ticket
market, Ben Carlile of Allegiant Partners, representing the middle market,
and Peter Eaton of Pentech Financial, representing the larger-ticket
market, presented the second panel on” Decisions Not Based on Credit
Scoring”. The panel discussed their positions on “story” credits. These
are non-conforming transactions requiring full financial disclosure.
The panelists generally agreed that extensive due diligence was necessary
and that any originator presenting such a transaction should have a
thorough knowledge of his or her applicant. Participants
left the meeting with a better understanding of both venture leasing
and how diverse funders look at story credits. It
was a successful and enjoyable event. Bob
Teichman, CLP Teichman
Financial Training 3030
Bridgeway, Suite 213 Sausalito,
CA 94965 Tel:
415-331-6445 Fax:415-331-6451 e-mail:
BoTei@aol.com "Providing
education and training to the equipment leasing and financing industry." |
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