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Companies who notify lessee in advance of lease expiration


These companies do not use language to confuse, perhaps to deceive, with the result an automatic continuation for an additional twelve months of payments. They do not invoke the twelve months on a $1.00 purchase option or an Equipment Finance Agreement.

In its editorial of June 30, 2011, Leasing News recommends that the equipment lessor send a certified letter with return receipt; however, at this time, the acceptance of the word of the president of the company will be accepted until proven otherwise. http://leasingnews.org/archives/Jun2011/6_30.htm#editorial


American Leasefund, Inc.
BancLease Acceptance Corporation
Bank of Ozarks Leasing
Bankers Capital
Equipment Finance
Black Rock Capital
BSB Leasing
Calfund
Capital Technology & Leasing, LLC
Cobra Capital, LLC
Dakota Financial, LLC
Direct Capital
eLease

Financial Pacific Leasing
Forum Financial Services, Inc.
Gonor Funding
GreatAmerica Financial

Innovative Lease Services, Inc.



Lease-$mart
Madison Capital
Macrolease Corporation
Manufacturer's Lease Plans, Inc
Mesa Leasing
Maxim Commercial Capital
(Microfinancial)/TimePayment
National Machine Tool Financial Corporation
Navitas Lease Corp.
Northwest Leasing Company
P&L Capital Corporation
Pacifica Capital
Padco Financial Services
Park Western Leasing
Pawnee Leasing Corporation
Southern California Leasing, Inc
Specialty Funding, Albuquerque, New Mexico
Standard Professional Services, LLC
Stoddard & Associates
TEAM Funding Solutions


A -Accepts Broker Business | B -Requires Broker be Licensed | C -Sub-Broker Program
| D -"Private label Program" | E - Also "in house" salesmen

American Leasefund, Inc.
1999
Tom Davis
tom@alclease.com
800.644.1182 - PH
503.244.0845 - FX
www.americanlf.com
NEFA (Q)
6
Idaho, Montana, Oregon, Washington

$5,000 - $50,000
Does Subprime Leases


“We are still funding transactions in house.  We don’t sell our paper.  We maintain and service our own portfolio.  We have updated our website www.americanlf.com .  As far as end of lease residuals go:  We send the lessee a registered letter 30 days prior to the last payment that gives the customer the option of buying the equipment for the residual value, returning it, or renewing their lease."
 Tom Davis

-----------------------------------------

Banclease Acceptance Corporation
8200 Springwood Dr., Ste 240
Irving, TX 75063

"The 10% residuals we write are PUT’s which the lessee has to pay/ contractual payment w/ no payment continuation if they miss the date. They are just required to pay the PUT. The pure FMV’s leases we write are just that: pay the then FMV, return the equipment or re-lease for a reduced amount agreed upon by both parties/ not evergreen/ no automatic payment continuation. Most of the FMV leases we write are $1MM+ w/ negative stream rates to large hospitals for tier one medical equipment, who typically return the equipment @ the end of term.

"We are always fair with our lessees & try to notify them on all $1.00 out; however if they miss the day we still honor the $1.00 out. Executing/ enforcing an evergreen clause on a $1.00 out lease in our opinion is just wrong/ unfair."
   Ron Mitchell, SVP

Bank of Ozarks Leasing
(bank 1903/ Leasing 2003)
Scott Hastings, President 
shastings@bankozarks.com
Toll Free 866.625.6690
Direct 501.448.0140
Cell 501.951.3664
Fax 866.625.6689 
www.bankozarks.com

13
National
$5,000
Y
Y
N
N
Y

“I noticed your mention of us with respect to ‘End of Lease Option’ notification. All but 8 of our 2,505 contracts are full payout. When we occasionally write a residual based contract we call the customer 90 days prior to lease expiration for direction on disposition.
Always enjoy your newsletter.”

Scott Hastings

Bankers Capital
1990
Larry LaChance - President
508-351-6000
llachance@bankers-capital.com
www.bankers-capital.com
NAELB, NEFA (GG) 
6
Nationwide - 50 States

$25,000 +

Bankers Capital’s policy and procedure at the end of the Lease term is to bill for the residual assuming there is no continuing default and the Lessee has satisfied its Lease Obligations. We either get paid or we will even work with them to stretch it out over a few months for cash flow reasons. We only do true Leases and do not do 1.00 out Leases. So we do notify all Lessees. We would rather have repeat business with a new Lease than a pissed off customer with renewal payments for who knows how long.

Our Lease documents do state that they either return the equipment, purchase the equipment, or if they choose neither, then the Lease will renew automatically month to month. We prefer that they exercise their purchase option and we try and make it easy for them to do that.

Side comments to Lessors who insist on Evergreen clauses and deceptively collecting on them: IF you can’t get your yield on the stream plus the intended residual, Don’t Bait and Switch to get it. That is what gives our industry and Lessors a bad reputation. If you keep it up, it won’t be long before we become regulated. When that happens, it will cost you more to stay in business under those regulations and you will make less money in the long run. And guess who will regulate you???

Larry LaChance

BSB Leasing, Inc.
1992 Colorado, Hawaii
Don Meyerson, Pres.
DMyerson@bsbleasing.com
Bruce Zwillinger, Vice President
800.945.3372 ext. 306
bzwillinger@bsbleasing.com
Randy Propect, East Coast rpropect@bsbleasing.com
Vicki Shimkus,CLP
West Coast Brokers
vshimkus@bsbleasing.com

www.bsbleasing.com
NAELB (EE)
12
National
$5,000+

First we don't have a discounting program. We do however allow a broker to "own" the residual. But we only allow transactions to be documented using our document which does not contain an evergreen clause.

BSB Leasing, Inc. generally does not take a residual position in the leases we write for our own portfolio. We either write $1 purchase options or PUTS. We do not have an evergreen clause in our lease or EFA contracts. In the rare event that we do take a residual position we do notify the client when the agreement is coming to term and a residual is due.
Don Myerson

Black Rock Capital
1994
George Booth
gkbooth@blackrockcapital.com
203.336-9200
www.blackrockcapital.com
ELFA (E)
7
US Canada (F)

$50,000 to $3MM

$250,000 average transaction

They are in fact notified in that we will not only invoice them if notification is not received and also we call them
George Booth

Calfund, LLC
2000
Harry Saghian
harry@calfundllc.com
(AA)
10
Western States

$15K
Minimum

Does Subprime Leases


We do not use Evergreen clauses and always notify the lessee before the lease expires about any residual or purchase option.
Harry Saghian

Capital Technology
& Leasing, LLC

Wildwood, Missouri
Bob Chiebowski, President rchlebowski@captechleasing.com
636-458-0333
www.captechleasing.com
1988
33
8
Midwest
$15,000
Y
N
A
N
N
Y

“Since the inception of Capital Technology & Leasing, LLC (CT&L) in 1998 we have always sent a 180 day notice to all of our lessee's reminding them that their lease would expire. I believe it is better not only for lessee planning, but lessor planning to operate in this manner. It also gives me time to offer buyouts and extensions.”
Robert Chlebowski

Cobra Capital LLC
Darien, Illinois
Dale R. Kluga, President
dale@cobrallc.com
Office:630-985-3500
Fax: 630-985-3567
www.cobrallc.com
ELFA
6
Nationwide
$50,000 - $1MM
$250,000 average transaction.
Y
N
Y
N
N


Cobra does not have a 12 month automatic renewal provision in our lease. In fact we have returned extra lease payments, (which I just did last week for a lessee), if the lessee was not aware of their purchase option. However, most if not all of our lessee's are very shrewd, prudent and responsible small biz operators who are much smarter than the big companies and rarely do they make that mistake unless they prefer to continue making month to month payments in lieu of a larger final EOT payment which they typically cannot afford.

Also, I have to say that I'm surprised by your asking about this issue as every one of Cobra's clients have diligently dissected our ELA upfront and immediately object, (BEFORE they sign our lease), to ANY provision of our lease that they deem unacceptable. Therefore, we don't experience the same "surprise" documentation element that apparently your readers have expressed to you.
Dale Kluga

Dakota Financial
2001
Mae Philpott
mae@dakotafin.com
310.696.3030 x122
fax 310.696.3035
www.dakotafinancial.com
NAELB, NEFA
9
Nationwide
$10,000 to $1MM
Y
N
Y
N
N
 
"Dakota never has and never will write an evergreen clause into our leases. One of the great things about our program is that our purchase option is actually already calculated into our lease quotes (with the term residual structure) so that customers know from day 1 exactly how much they will pay to own their equipment at the end of the lease."
Mae G. Philpott

Direct Capital Corporation
(also known as "Direct Lease")
Steve Lankler, Vice President, Marketing
V: (603) 433-9470
slankler@directcapital.com www.directlease.com
200
N/R
N/R
BBB
CNI (b)
CNI (a) Search
N/R
N/R
N/R
N/R
N/R


Direct Capital does not have an Evergreen clause in our contract and we do notify lessee prior to end of lease.
Chris Broom


eLease
St. Petersburg, FL
Tom Williams, CEO
tom@elease.com
800.499.2577
727.209.1200
www.elease.com
1995
8
N/R
$5,000 to $500,000
*
*
*
*
*

We do not renew leases and let the customer know they need to elect their end of term option within 30 days. Beer is selling well!

Financial Pacific Leasing
A subsidiary of Umpqua Bank
1975
Terey Jennings, CLFP
800.447.7107
tjennings@finpac.com
www.finpac.com
ELFA, NAELB, NEFA
(BBB)
140
Nationwide
$5,000 - $500,000
Y
Y
Y
Y
Y
 

"I wanted to describe FinPac’s policy regarding 'evergreen clauses' and advance notice on true lease structures. On transactions where FinPac holds an FMV residual position, our documents do not include an evergreen clause and thus we do not enter the contract into a renewal period. In these cases we simply bill and collect a onetime residual. Some of our lessor partners utilize our generic document feature which also doesn’t include any sort of evergreen provisions. In the cases when we purchase discounted transactions on another lessor’s documents, FP does not own the residual (if any) and we reassign our interest back to the lessor after we have been completely paid the initial rental stream.

"We make sure all discounted documents comply with the laws of the particular jurisdiction. Therefore they must comply with any State laws regarding notice requirements in the event of a true lease. We encourage all documents to contain some reasonable notice provision as the best practice regardless of a particular State requirement. In the very rare instances that an FP lease results in a dispute between the lessee and original lessor over the residual position, we will work very closely with the lessor to make sure the customer is treated fairly and ethically. The circumstances of residual valuation can vary widely and deteriorate into heated negotiations. Our position is that such negotiations should never get to that level in the best interest of good customer relations and the reputation of FP, the lessor and our industry."
Paul J. Menzel, CLFP
President & CEO

Forum Financial Services, Inc.
1996
Tim O'Connor
972-690-9444 ext. 225
tim@forumleasing..com
275 West Campbell Road
Suite 320
Richardson, Texas 75080
Fax: 972-690-9464
www.forumleasing.com
NAELB & NEFA (W)
7
Nationwide

$50,000 to $1.0 million. Our average size transaction is $250,000.
Preferred Range
$100,000 to $500,000

Does Subprime Leases

   


Let me first start out by giving you my opinion on other leasing companies that use them as additional revenue when the Lessee has a $1 buyout or a bargain purchase option.  It's none of my concern. I don't tell other companies how to run their business.  I would hope that those types of practices will catch up with them with their vendors and the lease brokers that they do business with.

At Forum, we do have an "evergreen clause" in our lease documentation.  Not sure where the term "evergreen clauses" came from.  We simply negotiate with each Lessee and on each different Lease a notification period.  It is imperative that we have that negotiated up front so both parties know what to expect at the end of lease.

Keep in mind, we write leases almost exclusively for "tough" credits in the $100,000-$1,000,000 range.  They are almost all True leases. All of our lease deals are full financial disclosure and we deal with sophisticated Lessees that have Legal review the documentation.  We do not hold any "App Only" lease paper and do not lease to small businesses. Most of our leases are for high residual equipment.  Because we deal in "tough" credits, most of the time when we come to end of lease they do not have the resources to purchase the equipment so we work out an extension term and rate for them.
Most of this equipment has 2-12 month availability.  We are kind of unique in that some of our Lessees are worried we will terminate the Lease, and they want plenty of time to plan for any change of equipment. We actually did a lease two years ago (48 month term) where the equipment had an 18 month availability.  There are two years left on the Lease, but we are already in negotiations on the extension/refinancing of the lease.

We have had some Leases go month to month as the Lessee needs time to figure out what they want to do.  Because the equipment has a relatively high value and is depreciating while on month to month, the Lessee is getting fair value.  Use of a depreciating asset while they have the flexibility of renting it. As a Lessor, we need time to remarket equipment that comes off lease.  Time is money when you have a depreciating asset that can take 60-90 days to negotiate with a wholesaler and have the equipment moved for sale. Having a 60-90 day notification is the minimum we can agree to on high residual equipment.

It's very unusual for us to do a $1 buyout lease or a bargain purchase option lease.  It does not work for the credits we write leases for.  The few that we have done over the years, we notify the Lessee and provide them with the agreed upon buyout.  We have been in business for over 20 years and have a very good reputation for keeping commitments and doing what we say we will do.
John Caulfield

Gonor Funding
2001
Norman J. Gonor
ngonor@gonorfunding.com
818.784.5444
Jason Gonor
818.402.6999
www.gonorfunding.com (Y)
3
USA

$10,000 to $100,000 with an average of $25,000 - $35,000

Does Subprime Leases

   

I can tell you that I do notify the client when the lease is coming to an end, and I do NOT require notice from them. I have never invoked the extra payment rule of Evergreen since I have been in business.
Norman J. Gonor, Attorney

GreatAmerica Leasing Corp.
1993
Cedar Rapids, IA
Matthew L. Doty
VP Corporate Communications
mdoty@greatamerica.com
319.261.4188
www.greatamerica.com
ELFA, NAELB. UAEL
335
Nationwide
$3,000 to $75,000
Y
N
N
Y
Y


We think of evergreen as being a 12 month lock, which we don’t do on GreatAmerica contracts. We also notify all lessees prior to end of term regarding the expiration of their initial term. From there we simply use a month-to-month approach
Matthew L. Doty

Innovative Lease Services, Inc., Carlsbad, California

"ILS notifies our Lessees regarding any residual, and always in advance of any month-month renewal. We don’t evergreen for a longer period but if there is no exercise of purchase option, then the rental reverts to a monthly extension."
Andrew Nere

--------------

Lease-$mart, Oro Valley, Arizona

"We have our own portfolio of leases on which we ALWAYS notify our Lessees of their upcoming lease-end and give them options for purchase or renewal at a reduced rate.  The renewals are invoiced every month INCLUDING A REMINDER that the minimum term has been satisfied and they can purchase at any time.  We do not use any automatic 12-month renewals, nor any similar 'gotcha' clauses.

"In addition, we make great effort to monitor our various brokered transactions to make sure that they do not blindly go into a continuing rental, unless the Lessee specifically intends for that result.  Our transaction management system alerts us to follow up with our Lessees 3 to 6 months before the scheduled lease termination date so that OUR clients are not subject to this abuse by unethical lenders.

"I have personally spent countless hours and fought hundreds of battles on behalf of my Lessee-customers to make sure that they get what they were promised.  We always keep every approval, every quote and every signed document in connection with our leases, so that we always have proof in support of our clients claims for $1 purchase options, or other fixed-price residuals.  This is key, because our Lessee customers don't always have perfect record-keeping and filing systems.  I estimate that simply having complete documentation in our archives has saved our customers in excess of $100,000 in abusive assessments by Lessors who are lacking in moral conscience and basic business ethics.  They sometimes attempt to take advantage of the unsuspecting good businessmen and women we work with, but we come prepared - armed with the facts of the transactions - and the 'tickler' system to protect our customers from their schemes.

"We strongly support what you and Leasing News are doing to shine a light on this unethical practice which blemishes our entire industry.  Keep up the good work! "

--
Sincerely,
Gary Greene, CLP BPB

-----------


Macrolease Corporation, Plainview, New York
a Bank Rhode Island Company

“I've recently noticed that you are maintaining a list of Lessors who notify clients of lease maturity and residual/renewal amounts due. Please add our name to that list. We have consistently, over forty plus years,  "noticed" our clients about residual or renewal options, six months in advance of maturity dates and are proud of our unblemished reputation within and outside of our client portfolio. Thanks for maintaining this important list of credible Lessors.”

Daniel W. West
President

Madison Capital
1997 
(formed by merger of Harbor Leasing, started 1983, & Fox Valley Leasing, started 1974)
Allan Levine, Partner
443.796.7337
alevine@madisoncapital.com

Nancy Pistorio, President
443.796.7325
npistorio@madisoncapital.com
Fax: 443.796.7200
www.madisoncapital.com
NEFA,ELFA, NVLA

27
U.S., Canada, Puerto Rico
$10,000 to $450,000, Vehicles: Unlimited

CNI 1
CNI 2
CNI 3
Search

Y
N
N
Y
Y

When our leases are up, they are up. No extra billing(s).
Allan Levine

Manufacturer's Lease Plans, Inc.
Phoenix, Arizona
Nicholas Marce, AVP
602-944-4411, ext. 25
nmarce@leaseplans.com
www.leaseplans.com
AZELA, ELFA, NAELB
click for more info
30
Contential US
$25,00-$300,000
Y
Y
N
N
Y

We like to keep our customers happy – and coming back to do more business.  Consequently, most of the leases which we originate automatically renew on only a month-to-month basis -- typically with 60- or 90-day notice being required in order to cancel the ongoing month-to-month renewal.  In the case of leases that have longer automatic renewal terms (generally 6 or 12 months), we typically do notify our lessee of the upcoming renewal -- especially since we are generally pro-active with all of our lessees in discussing their end-of-lease options.

In the case of “$1-out” leases, we often waive formal exercise of the $1.00 purchase option by the lessee -- absent extenuating circumstances.
Roger Marce

Maxim Commercial Capital, LLC
   2008
877-776-2946
Doug Houlahan, CLP
info@maximcc.com
Shervin Rashti, CLP
shervin@maximcc.com
 www.maximcc.com
   NAEL
   NAELB (DD)
5
U.S.

$35,000 - $500,000

While we have an Evergreen clause, it is not our intention to rollover the lease and we are in
communication with our lessee regarding the termination of the lease contract.
Shervin Rashti, CLP

Mesa Leasing, Inc.
1999
Dave Watt Phone 858.541.1002 Dave@mesaleasing.com
www.mesaleasing.com
4
Arizona, California, Idaho, Oregon, Nevada, Utah, Washington

$10,000 - $100,000

Mesa Leasing does not have an evergreen clause in our contract.  We do have a clause that says payments continue until the equipment or the residual is paid.  Mesa does notify lessees that the lease has been paid and the residual is due or the equipment can be returned.  To date no one
has returned their equipment once they learn that the equipment has to be delivered to Mesa in good working order.
Jeff MacDonald

(Microfinancial)/TimePayment, Burlington, Massachusetts

Timepayment Corp
(Subsidiary of
Microfinancial Corp.)
Burlington, Massachusetts
 1989
Scott Baider
scott.baider@timepayment.com 
877-868-3800 x7002  
www.timepayment.com/lease-brokers
  NAELB
175
National
$500 to $100,000
 
Y
N
N
N
Y

"We notify every lessee – regardless of their contract type - FMV, Lease to Own or $1 out of the coming end of their lease term, and do not include an evergreen clause in any of our contractual agreements."
- Ric Zaenglein, Director of Marketing

National Machine Tool Financial Corporation
1986
Chris Chiappetta, Robert Lang, Susan Adamatis
800-669-7527
www.netlease.com (CC)

20
Nationwide
$15,000
 

We/I do not advocate the “Evergreen or Wintergreen Clause.”

The majority of our transactions are $1.00 option leases and we DO NOT continue to bill monthly payments after the last term payment has been made.

If there is a residual due, we DO notify lessees in advance via invoice for the residual amount.
Susan Adamatis

Navitas Lease Corp.
Florida and New Jersey
2008
Gary Shivers
904-543-2575, ext. 102
garyshivers@navitaslease.com
www.navitaslease.com
ELFA, NAELB
28
National
$3,000 plus
Y
N
N
Y
Y
 (Does not included RLC Funding up-date)

A -Accepts Broker Business | B -Requires Broker be Licensed | C -Sub-Broker Program
| D -"Private label Program" | E - Also "in house" salesmen

We do very few true leases and none have come to term.  We will notify our customers, it is required in some states and it is a good business practice.
Gary Shivers

Northwest Leasing
Company, Inc.

Bellevue, Washington
1992
Tad Rolfe 425-827-8386
tad@nwleasing.com
www.nwleasing.com
(more info)

3
Washington, Oregon, and Idaho

$10,000 to $75,000 (Avg. $25K)

We send billing statements every month.  We have a signed Residual Agreement the day
the lease begins and bill the residual the month after the last billing statement.  We usually collect
a Security Deposit up front and that is automatically credited at the time of the Residual Billing.
Tad Rolfe

P&L Capital Corporation
1996
Phil Lieber
800.698.1686
phil@plcapital.com
Tim Mathison
800.698.1686
tim@plcapital.com
www.plcapital.com
NEFA (WW)
28
National
$10,000
(most clients are doing monthly or quarterly schedules)
Y
Y
N
N
Y

1. P&L Capital has always had an A+ rating with the Better Business Bureau.  We are proud to say we have not had a single complaint since our inception in 1996.

2. I have attached our letter of intent for our Technology Rotation Lease.  Our goal is to help our clients with their next technology rotation, but also, we want to know what’s coming back so we can presell our inventory.   The letter is sent, along with several phone calls starting with sales, and then admin.  If we get notice of intention on day 89, or even day 30, we do not put our clients into renewal even though we could. As long as communication is present, we work with our clients.   We do have equity in these deals, so we need resolution to be made whole.  Month to month is our only renewal option, we do not automatically renew for a certain period of time unless its requested by the customer.

3. Our broker business is 70% $1.00 out and we are funding  mostly small ticket with a variety of equipment types and industries.  We doc and we don’t discount so we control the back end.  The end of option form is included in all our deals for signature.   Once the term is up, the deal is done.

Tim Mathison
P&L Capital
P-402-330-9580 x226
P-800-698-1686 x226
F-402-758-1259
www.TechnologyRotationLease.com

Pacifica Capital
San Juan Capistrano, CA
Bette Kerhoulas, CLP
Managing Diector
bettek@pacifica-capital.com
800.800.8081
949.727.3711
www.pacifica-capital.com
NAELB

1984
10
Nationwide
$5,000 to $10MM
Y
Y
Y
Y
Y

Pacifica Capital does not have “Evergreen language” included in our lease documentation.  We have a very specific procedure when dealing with our customers regarding end-of-term options.  We contact every lessee approximately 60 days prior to the expiration of their lease.  At that time, we explain the option ($1.00, 10% or FMV) and offer them payment terms on the residual if they need them due to cash flow restrictions.  Although our documentation allows for continuation of the lease on a month-to-month basis, the only time we continue billing at term completion is if we are in negotiation with the customer regarding the option and the residual amount has not been set… 

Pacifica Capital treats it’s customers with the upmost respect.  We consider our lessees to be our conduit to new business development.  Integrity and excellent customer service are the cornerstones of our business.  
Bette Kerhoulas, CLP

Padco Financial Services
Crete, Illinois
  1990
jpadden@padcofinancial.com
www.padcofinancial.com
800-347-5884 ext. 227
312-263-5971 direct
815-572-0939 fax
  NAELB, NEFA (T)
5
National
Min ~$4,000, Avg ` $22,000 prefer less $50K
Y
N
Y
Y
N

"We don’t notify, but neither have we ever auto billed renewal payments or an unexpected residual.

"We do our own billing/collecting. We indicate payment number on invoice so they know when term is approaching end."
- Jim Padden

Park Western Leasing
Tempe, Arizona
   1987
John Leber
480-831-6561
jleber@pwli.com
www.pwli.com

click here for more info
28
Western US
$10,000 -$1 Million
Avg: $30,000 -$250,000
Y
N
Y
N
Y

"For the record, Park Western advises the lessee of lease expiration and residual amount owed. We bill the residual (10%) when due and follow up with a call if we haven’t heard from them.  We’ll actually let them break it in 2-4 payment if they would like."
 - John M. Leber
Equipment Finance Specialist

Pawnee Leasing Corporation 
1982
Gary H. Souverein President 
(800) 864-4266 ext. 222
Gary@pawneeleasing.com 
www.pawneeleasing.com
ELFA, NAELB & NEFA 
(Click here for further description)
85
48 contiguous states

$1,000 - $200,000

Does Subprime Leases

BBB
CNI 1
CNI 2 
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We do not discount with anyone so that's not an issue; everything is on our docs.

We do indeed have a thorough notification process that includes layman, written notices on FMV style leases at 90 days before expiration, at expiration and post expiration to all of our lessees.  I'd add that any renewal payments contractually are at 50% of the regular payment and is month-to-month.  We are cognizant of the negative ramifications that "evergreen" brings to our firm, our brokers and industry and do our best to avoid any and all abuses.  We think our processes are tilted to the benefit of our customers as they should be.

Gary@pawneeleasing.com

Southern California Leasing, Inc.,Tustin, California

Southern California Leasing
Tustin, CA
Barbara Griffith, Pres.bgriffith@socalleasing.com
Christina Tran, Administrator
ctran@socalleasing.com
714.573.9804
714.573.9806 - Fax
www.socalleasing.com
NAELB
1992
9
N/R
$5,000 to $1MM
*
*
*
*
*

"We also give our customers a letter 90 days in advance that their residual is coming up. We contact each customer even when we broker the deal to alert them to contact the lender.

"We just had a client with US Bancorp that was being billed even though his lease was up. The lessee did contact us because he received our letter in the mail and when we called they said it was a mistake and he did not owe any more payments."
Barbara Griffith

Specialty Funding Group
Albuquerque, New Mexico
Bob Underwood
info@specialty-funding.com
505-797-7141
www.specialty-funding.com
ELFA, NAELB, NAMB
1998
35
9
Southwest
10K
Y Y N Y Y

“As policy we notify the lessee of their options 90 days in advance of their lease term ending. We give them the last 60 days of their term to respond with their intentions. Should they fail to reach a decision or fail to respond to our request for end of term resolution we continue their contract on a month to month basis. This continues until they arrange a satisfactory termination or the FMV residual is satisfied.

“The same applies to our Vehicle Trac Lease program.”

Bob Underwood
President Specialty Leasing Group dba Specialty Funding

 

Standard Professional
Services, LLC
1976
Mr. Raphael Lavin, CLP
JWhalen@spsllc.net
847-291-7858
www.spsllc.net
NAELB, NEFA (I)
4
Nationwide & some offshore

$10,000 - 250,000

($25,000 - $150,000 desired)


We do have an Evergreen or automatic renewal clause in line 15 of our lease contract. It is there for the sole one purpose and that is to use it as leverage against a lessee who has failed to complete the buyout and/or not having prepaid us for the personal property taxes that we have paid on their behalf (we send invoices immediately after we have paid the tax due.)

While there are some lessors and funders who automatically renew all lease contracts unless properly notified, we think that policy only further taints the industry as a whole and will invite further regulation.
Mr. Raphael Lavin, CLP

Stoddard & Associates, Los Angeles, California

Stoddard & Associates
Los Angeles, California
Sonia v.M. Stoddard
Phone: 310-390.2009
www.StoddardAssociates.com
ELFA & NAELB
2002
15
One (A)
Nationwide
$10,000; preferred range $100,000 to $10,000,000
Y N N N N

"Early on, when I was not an independent broker, I worked for a lessor that sometimes offered an extension option on the lease, especially since the majority of what we were doing were fmvs and the client often needed that extra quarter (or even a year) to decide and/or trade in/return equipment. I always told the client to calendar any end of term provisions; however, I carefully calendared all this at my end as well. It was often a challenge to track down the person responsible for taking action, but I made it a point to do so. I never had one problem as a result.

"I carried this process over when I started Stoddard & Associates in 2002. And, I've gone to bat for clients with other company's leases who may have had a problem when slipping a deadline on notification. It's not rocket science. Simply make sure your customer is aware of the contract stipulation, as some of them will not pay attention. Then, safeguard your client by keeping a follow-up so nothing falls through the cracks."

Sonia von Matt Stoddard, BPB
(NAELB Best Practices Broker*)

 

TEAM Funding Solutions
1992
Ted Reynolds Owner and President
Jeff Deskins - Credit Manager
App Submittal
Lynn Smith Senior Broker Development Manager 888-457-6700 x115,
App Submittal
Martin Lacayo - Broker Development Manager 888-457-6700 x106,
App Submittal
Norm Malkowski, CLP -
Broker Development Manager
888-457-6700 x108,
Funding Stephen Stuesser
CFO Jessica Green - Marketing and Relationships Manager
Phone: 888-457-6700 x109,
Enrollment Fax: 512-258-2322
www.teamfundingsolutions.com
ELFA, NAELB, NEFA (Z)
(click here for further description)
12
All 50 States
$10,000 - $100,000
Y
N
N
N
N


“TEAM offers three end-of-lease options; they may elect to purchase the equipment for 10% or FMV, return the equipment, or continue renting the equipment until they have made their decision. The lessees are notified in advance of their end of lease term. The renewal is an important tool in the event that a lessee says they will not buy the equipment and they will not return it in working condition. We then act according to their direction.”
Ted Reynolds