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Thursday, July 14, 2005
Headlines--- Constant Contact Down *tomorrow—Super Broker List ----------------------------------------------------------------
Constant Contact Down Constant Contact was down until Wednesday morning, and it took them until noon, California time, to get back up and running; therefore Leasing News was not sent out until around noon, California time. The edition was posted on the web site at 1am, our time. We apologize for any convenience, particularly to our early morning readers Bulletin Board Complaint- If you did not receive yesterday's edition, please go here: http://www.leasingnews.org/archives/July%202005/7-13-05.htm ---------------------------------------------------------------- Five Top Salesmen Leave HPSC/GE “Greg Wood, Penny and Mike Healy walked out of HPSC/GE today. (Wednesday, July 13.) Reportedly three others left, too, including Tom Baker, who territory was Illinois, Indiana, Wisconsin, Minn, Iowa, Indiana, Michigan and Ohio, his daughter: Anita Baker and Greg Wood, who's territory was OK, TX in whole, NM, LA. “The Healy's where responsible for at least $25 million in equipment financed last year. Greg Wood generated $30+ million. Healy's territory was the West Coast and Greg Wood was based out of Texas.” (name and address withheld—a very reliable source) In our attempt to verify this, we contacted several readers, some responded, such as: “i know where Greg Wood, Penny and Mike Healy went by i need to find out more info before i tell you....I think it is Unicyn...” (name with held ) “I heard Unicyn hired Greg, Penny and Mike…” ( name with held ) “Confidentially I heard that they went over to Unicyn and I do not know how they are going to handle that kind of business there…” (name with held) “MAIN REASON FOR EXODUS!!!!!!!!!! The infamous letter from GE to all the medical vendors informing them that HPSC/GE currently pays referral fee's to the vendors sales force and if they want it to cease they need to make HPSC aware. MOST of the vendors in the industry DO NOT allow their sale force to receive compensation directly from leasing companies. Therefore HPSC was going to STOP sending out referral fees. Everybody (everybody I guess except GE CORPORATE) knows that business is generated on the street not in the board room. so if the HPSC sales force could not send out referrals then they would be losing tons of business. “Whoever at GE that came up with that letter just cost the company $75 million in business!!!!! even if only 50%of the business follows the sales force....that is $37.5 MILLION IN ONE DAY!!!!!!!!!! Nice work!!!! I wonder if he/she is updating his/her resume??? “ (name and address withheld) Leasing News has been receiving reports since GE Capital took over, things have been changing ("Oh, yeah, that is news, Kit?!") As in the past with US Leasing in San Francisco, Transleasing in Chicago and Colonial Pacific Leasing in Oregon, not only are personnel eventually let go, but others leave as the rules change, and in the HBSC case, commission restructioning was "severe," according to those on the inside. Salesmen used to lower rates and larger commissions were giving different guide lines. It seems that in these mergers and acquisitions, the new bosses don't like the money sales people are making, and they think the large commission personnel can be replaced, with new, lower priced sales personnel taking over the accounts as "company accounts." This philosophy has been going on for at least two centuries in America, maybe longer. Cutting costs produces higher net profits right away. The past presidents at General Electric are very well known for this philosophy---and their track record shows that it works. The president and the board care about their bonuses as they too are also in sales---selling the public that the company is doing better and therefore they receive a higher commission---it is called stock options and bonuses in their parlance. And after all, isn't that what the game is about? Editor ----------------------------------------------------------------
Operations Orange County, CA . Operations/Credit Experienced Credit, Collections, lease and Finance operations . New York, NY. Wayne, NJ Full list of all 77 “Job Wanted: http://64.125.68.91/AL/LeasingNews/JobPostings.htm ---------------------------------------------------------------- New Jersey Reaches Additional Agreements
New Jersey Attorney General Peter C. Harvey The New Jersey Attorney General's Office and the Division of Consumer Affairs have reached agreements with seven financial service companies that forgive monies owned by former New Jersey customers of NorVergence, a bankrupt telecommunications firm that discontinued service in July 2004, Attorney General Peter C. Harvey and Consumer Affairs Director Kimberly Ricketts announced. The seven agreements forgive a total of approximately $15.9 million that was owed by 770 former NorVergence customers located in New Jersey. The New Jersey Star Ledger reported:” Newark-based Norvergence collapsed last July, cutting off phone and Internet service to about 9,400 customers nationwide and more than 1,000 in New Jersey.” According to the claim filed in the New Jersey Bankruptcy Court, NorVergence claims they had 11,000 leasing customers in the United Sates. A press release announced the latest agreement with Court Square Leasing. New Jersey also was part of a national, multi-state settlement involving TCF Leasing Inc. that included two New Jersey customers. In addition to Court Square Leasing, which forgave $47,000 to its New Jersey customers, the other companies who have reached settlements (amounts as noted) with Consumer Affairs are: Deputy Attorneys General Lorraine K. Rak, Chief of the Consumer Fraud Prosecution Section, and Jeffrey Koziar represented the State in these matters. According to the Starledger, “Nineteen other leasing companies that hold contracts with about 680 New Jersey Norvergence customers have not reached agreements with the Attorney General.”
NJ Acting Governor Richard J. Codey "These customers, mostly small businessmen and businesswomen, couldn't even get a dial tone but the bills kept coming in month after month. Their credit ratings were at risk and their livelihoods were threatened. Thanks to the understanding and cooperation of these seven financial service companies, we've lifted a tremendous burden from these entrepreneurs and we're again letting them focus on the business of their business," Acting Governor Richard J. Codey said. The financial companies continued to bill NorVergence customers, under terms of the service contracts they bought from NorVergence, though these customers received no telecommunications services following the company's filing for bankruptcy. "These former NorVergence customers, through no fault of their own, were faced with paying for telecommunications services that they were no longer receiving after NorVergence discontinued operations and filed for bankruptcy," Attorney General Harvey said. "These financial companies, which bought long-term service agreements from NorVergence, also were affected by NorVergence's actions." "I want to acknowledge these financial service companies for working with us to provide relief to the former NorVergence customers," Director Ricketts said. "We're continuing to work with other financing companies that bought lease agreements from NorVergence so additional New Jersey consumers obtain relief." NorVergence, which was based in Newark, sold and resold telecommunications services as integrated packages, including local and long distance telephone, cellular telephone and high-speed internet access. NorVergence primarily marketed its services to small businesses and not-for-profit organizations that did not have in-house counsel or technology personnel who could properly evaluate what was being offered. Customers were told that they could save up to 60 percent compared to their current service providers over the term of the NorVergence contract, which was typically five years. Under the settlements with Consumer Affairs, the seven financial service companies also agreed to assist consumers in resolving any adverse credit reports resulting from unpaid NorVergence balances. Late fees or penalties and property insurance charges also will be forgiven. "We believe the settlement is a fair and equitable arrangement for everyone who has been damaged by the Norvergence matter," Wells Fargo Financial spokesman Steve Carlson said in a statement. New Jersey Attorney General Harvey announced January 12,2005, that General Electric Capital Corp and CIT Technology Financial Services agreed to forgive the majority ( nearly $8 million )of payments owed by 525 customers, more than one-third of the roughly 1,450 NorVergence customers in New Jersey. GE has agreed to forgive $3.57 million owed by 270 New Jersey customers. CIT has agreed to forgive $4.36 million owed by 255 New Jersey customers. Meanwhile, Federal Trade Commission Top Equipment Leasing Dragon Slayer attorney Randy Brook is scheduled at 10:00 a.m., Monday, July 18 th to ask Judge Dickinson R. Debevoise, where the FTC is asking for forgiveness of $181,721,914 as the liquidated damages of NorVergence leasing contracts.
Seattle Based Leasing Dragon Killer Randy Brook “As calculated by the FTC after subtracting from the total consumer Injury the cancellation of indebtedness for rental agreements that will be cancelled by this case, the judgment among is $181,721,914.” Although the likelihood of collecting that amount is low; perhaps echoing the states attorney general's judgment in Illinois, Massachusetts, and Texas to void the leasing contracts. The legal jurisdiction and other matters are certainly to be appealed, if granted, as many attorneys believe the move is more posturing, perhaps even “pressure”, to bring the leasing companies to the table. The FTC has accused Norvergence of deceiving customers about the cost savings it could deliver; law enforcement authorities also are investigating the case. The questions still linger about the involvement of 46 leasing companies and their ethical and legal responsibilities. ---------------------------------------------------------------- Story Credit Lessors These companies specialize in "C" and "D" credits, often news businesses, or businesses where the principal(s) have Beacon score around 600 or previous difficulties; meaning to become comfortable with the credit and financial situation you need to learn the "story" to make a positive decision, often requiring further security, shorter term, or additional guarantors. Many of these companies may also be a "B," but appear otherwise without the "story" to understand the full financial picture. (To qualify for this list, the company must be a lessor and not a broker or superbroker, along with an acceptable Better Business Bureau Rating and no history of complaints at Leasing News. We reserve the right to not list a company who does not meet these qualifications.)
(A) Pawnee Leasing Corporation; Some times we go higher than $30,000, but our marketplace is from $1,000 to $30,000. (B) Allegiant.pdf (C) Mesa Leasing, Inc., Industries served: Titled vehicles (Trucks, trailers, OTR, etc.), Construction, Restaurants, and all the other "hard to get approved" industries. (D) ABCO Leasing, Inc. in Seattle area has been operating since 1974 serving the broker community. We required full financial disclosure on every transaction. We do story transaction, but do not like to refer to them as "C" of "D" credits. We think of therm as "A" type credits that have not been discovered yet. In actuallity, we do not really like to look at what most describes as "D" credits. (E) Black Rock Capital comment: We book anywhere between $15 to 20 million per year. We do no "app only" business and require a full financial package for each transaction. Our average size transaction is approximately $250k and, although, we concentrate in printing, packaging (steel rule die industry) and road construction equipment we do not rule out anything that makes sense. More information can be found at www.blackrockcapital.com. (F) Black Rock Capital (Ireland) Limited and Black Rock Capital (UK) Limited provide the same services for small to middle market corporations in the European Economic Community and the United Kingdom. (G) Cobra Capital, LLC. Comments: Our registered trademark "Making impossible possible" is our central marketing tagline for both strong and weak credits. I have developed a 10 year history, (from Cobra and my prior company GALCO), with specialty, non-conforming transactions (story credits) and have a solid reputation for candidly responding to our originators and lessees and working diligently to mitigate deal risk rather than making excuses to turn deals down. Our originators prefer our underwriting approach to non-conforming transactions since unlike most non-conforming funders, we prefer to mitigate risk versus jacking our return. Both Originators and Lessee's prefer our candid approach as we are also frequently asked to advise lessee's and lessors on the best way to structure their bank loans and raise capital due to our 25+ year banking and accounting backgrounds as my partner and I are both former bankers and CPA's. (H) Pentech is the lessor partner with Manifest Funding Services for their Navigator, Navigator Plus & Navigator Direct. This is through our sister company Pentech Funding Services, located in San Diego and headed up by Ron Wagner. (I) Sunrise International Leasing Corporation Comment: The broker program is "...an informal program as our primary business is still vendor leasing." (J) Boston Financial & Equity Corporation, most of our leases are venture capital backed startups and turnarounds. We require full financial disclosures, CPA and internal statements, no tax returns. We do not required additional collateral, no PG's or RE needed. Do not send deals with large tax liens, especially if they are payroll taxes. (K) Dakota Financial is a collateral-based direct funding source that specializes in C & D level transaction for customers who are unable to receive funding from traditional sources. Our nationwide program provides funding for start-ups as well as credit profiles that have prior bankruptcies, judgements, tax liens, repossessions or slow pays. I would say that the average credit score of our transactions is in the mid 500s. We have done many deals in the sub 500 range. Although we do all kinds of equipment, we specialize in trucks (including over the road owner operators), trailers, yellow iron and logging equipment. I encourage you to go to our website, www.dakotafinancial.com to find out more information including examples of recent funded transactions. (L) IFC Credit Corporation also services on a regular basis "A" and "B" credits, but it also considers "story credits." "As you say, we need to become comfortable with the credit and financial situation and learn the "story" to make a positive decision, often requiring further security, shorter term, or additional guarantors. I would describe the B and C type credits we fund as companies having 'checkered earnings'." (M) Creative Capital Leasing Group: "We are able to fund tough deals, bad credits, BK's, past tax liens, start ups, used equipment, etc., because we look outside the transaction for real estate, and marketable securities to take as additional collateral." (N) Blackstone Capital Partners, L.P. lends up to 50% of verified auction value for working capital and/or equipment financing requests (we of course include equipment to be acquired in our valuation). Using this formula, allows Blackstone to approve deals on the assets rather than the credit or cash flow that other lenders desire. Also being an asset lender, we are looking for hard assets i.e. yellow iron, machine tool, manufacturing lines, textile etc... We do not care for soft assets such as computers, furniture, restaurant, or "white elephants" (equipment that is too specific to the clients needs and was specially built for them - there would be no resell available and our liquidity if repossessed would be in jeopardy). If you have any questions, please feel free to call, we will do our best to help or seek the answer for you. (O) Bankers Capital " We will do ANY Type of Equipment, in ANY industry, in ANY state. We especially like 6-figure transactions with full financial packages no matter how good or bad they look. We look to structure the story C&D credits with any kind of additional collateral that makes sense. It could be with 2nd or 3rd mortgages on residential or commercial Real Estate, additional equipment, cash value life insurance, security deposits, vendor agreements. We look for any way to make the deal work instead of looking for any way to decline the deal." (P) Financial Pacific Leasing supports a nationwide network of Brokers and Lessors. We specialize in "B" and "C" credits for established companies as well as companies under two years in business. ---------------------------------------------------------------- Classified—Help Wanted Account Executives
Account Representatives & Sales Coaches
Lease Administrator
Lease pricing division economic analysis / analytical support
Tax Manager
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Leasing Association Meetings Open to Non-Members
July 14, 2005
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July 14th, NAELB, Scottsdale, Arizona The Gainey Ranch Golf Club in sunny Scottsdale, AZ on July 14 from 11:30 a.m.- 2 p.m. PDT for the Integrity Selling Seminar and Luncheon featuring Debbie Irving. Click here for more information about Debbie Irving $35 for Registration, click here for form
July 28, 29 & 30, 2005
For more info click here. -------------------------------------------------------------
Tuesday August 2 nd , Phoenix Arizona · Arizona Center for more information and registration, click here: -------------------------------------------------------------
August 3rd, 7:05pm, UAEL So. Calif. United Association of Equipment Leasing Southern California Region Our 4th Annual Angel Game Night Ticket Includes: Field Box Seating Company Employees are invited to attend. Family and Friends are welcome! Reserve your tickets today by emailing Kim at the UAEL Office: kim@uael.org. Or please contact Kim at 760-564-2227. Please RSVP by July 23rd, 2005. -------------------------------------------------------------
August 3rd, Costa Mesa, Ca. Broker Workshop -this is an association of companies who have "It's being held the same day as the 4th Annual Angel Game Night - Take me out to the Ball Game! Brokers can attend the workshop during the day, attend the ball game at night. Initial response has been excellent. In the past we have had anywhere from 15 to 35 brokers attend our "free lunch" but we're expecting over 100 brokers to attend this workshop. Space is limited and that's why we're encouraging reservations." Structured Leasing - That’s Where The Money Is! An Equipment Leasing Broker Workshop - August 3, 2005 The enclosed flyer provides a brief overview of the “workshop” Mesa Leasing is producing. The workshop is designed to offer brokers insight into a market niche we and other Funding sources target – C & D Credits. Several funding Sources have committed to attend the workshop and share with the brokers what is necessary to put more money in their pocket. The workshop consists of 2 specific areas of interest. First, each Funding Source is helping to sponsor this workshop. They will have a designated area where several brokers can meet and discuss the niche served by a specific lender. Brokers will learn what special areas of interest each source might have. Brokers will share in the knowledge gained by the questions asked by other brokers at the table. Brokers will come prepared with questions and a willingness to share. The second part of the workshop involves a 20 to 30 minute presentation by each funding source to those of interest. In a classroom environment, each Funding Source will present their program and educate the Brokers as to how to generate more business with them. Brokers are encouraged to come prepared to discuss specific applications they may have had turned down by other funding sources. Perhaps they may walk out with an approval turning that “turn-down” into income. This workshop will be of special interest to brokers “on the street”. They will learn what questions to ask – the first time you meet with the customer! Space is limited! Brokers are encouraged to reserve their spot- NOW! There is a small cost of $10 to the Broker. But when one considers the information obtained, and that lunch is included, this is an excellent workshop. Brokers don’t want to miss an opportunity never before available in southern California. http://leasingnews.org/PDF/CCreditFlyer1.pdf For information or reservations contact: Lauren@mesaleasing.com or Norm Malkowski ------------------------------------------------------------ August 10, 2005 UAEL PRESENTS AN EVENING OUT WITH: Colorado Rockies VS. Pittsburgh Pirates IN THE OWNER'S BOX!
WHEN: Wednesday August 10, 2005 at 7:05 PM| COMPANY EMPLOYEES ARE INVITED AS WELL AS FAMILY AND FRIENDS!! AVAILABILITY IS LIMITED – GET YOUR TICKETS NOW!! -------------------------------------------------------------- Oct. 21-22, 2005 National Association of Equipment Brokers For more information: mwilson@hqtrs.com ---------------------------------------------------------------------
November 4-5 For more information: mwilson@hqtrs.com ---------------------------------------------------------------- Semon Joins American Idol Panel
John Semon, Paula Abdul, Simon Cowell Lessors.com John Semon replaces Randy Jackson as one of the three judges for the popular television show “American Idol.” The American Idols Live tour is hitting the road this weekend, just in time as the early registrations for the Lessors.Com Atlanta, Georgia registration is closing today. This weekend tickets go on sale for next Seasons “American Idol.” One of the hottest shows ever is back for another great tour. Come check out your favorite Idols live and in person. Meet John Semon, Paula Abdul and Simon Cowell. FRI 7/15 Birmingham, AL BJCC Arena Mr. Semon's past services as president and chairman of The Association for Governmental Leasing & Finance, a member of the Equipment Leasing Association's "Municipal Forum", co-founder and chairman of the Jurassic Lessors Association and as an industry spokesperson for the United States Congress have provided additional critical experience and national acceptance as a speaker, author and industry advocate. He is also a well known country and western singer, plus song writer, best known for “I knew the deal was dead when he didn't sign the check,” and “Kiss me quick, because I have to go out and sign a lease.” The Lessors Network Annual Showcase on August 24-25 from the Ritz-Carlton, Buckhead hotel in Atlanta, Georgia. The conference is unique because it has: No Booths ~ No Breakout Sessions ~ No Problems The Lessors Network provides a showcase for every Attendee's company, product and service. That is how we produce the most productive networking events in the equipment leasing industry! Attendees bring a supply of their Attendee Profiles (view samples below) providing detailed description of their company, products, services and important contact data, for free distribution from designated exhibit tables in the Networking Suite. As Attendees pick up their badges they are provided a Showcase Book (three ring binders) with conference agenda, speaker bios, attendee list, etc. The Showcase Book is also used to collect copies of Attendee Profiles from other Attendees. At the end of the event rather than returning home with just an attendee list, you'll have a binder full of important resources and contact data. Participants http://leasingnews.org/PDF/Lessor_network.PDF For additional information: www.lessors.com ----------------------------------------------------------------
1. Tax Advisers Face Career Altering Risks under IRS Circular 230 2. Is It Time to Lease Your Next Car? 3. SEC Criticizes Off-Balance Sheet Leasing in New Sarbanes-Oxley Report 4. Leasing 101: What is a "Finance Lease"? 5. BLN Case & Comment: Affiliate to Vendor Gets "Finance Lease" Protection in Sony Financial Case 6. About Patton Boggs LLP and Our Law Practice; Publications 7. "Customer Care" - A Message from the Founder, David G. Mayer Go here for David G. Mayer Business Leasing News, July: (pages in .pdf) http://leasingnews.org/PDF/Patton_Boggs_7-2005.pdf ----------------------------------------------------------------
“Gimme that Wine” Top 100 Wine Brands in USA Restaurants Unveiled by Restaurant Wine Magazine (Wines are mostly crap.editor) http://www.winebusiness.com/news/DailyNewsArticle.cfm?dataid=38762 From Rioja, a Surprise in White http://www.nytimes.com/2005/07/13/dining/13wine.html?pagewanted=all Pioneer Women Winemakers of Sonoma County When: Sunday Aug 7th 2005 Where: Atwood Ranch, 12099 Sonoma Hwy, Glen Ellen, CA What: RARE OPPORTUNITY TO MEET http://wineserver.ucdavis.edu/calendar/events.php?ID=39 ---------------------------------------------------------------- Today's Top Event in History 1912-Birthday of Woodrow Wilson “ Woody” Guthrie, American folksinger, song writer (“This Land is Your Land,” “Union Maid, “ “Hard Traveling,”) born at Okemah, OK. Traveled the country by freight train singing and listening. Died Oct. 3, 1967 at New York, NY. Father of singer Arlo Guthrie. http://www.cooper.edu/~george/born2win.html http://memory.loc.gov/ammem/wwghtml/wwghome.html CHORUS: This land is your land, this land is my land ---------------------------------------------------------------- This Day in American History 1771-Mission San Antonio De Padua founded. ----------------------------------------------------------------
Baseball Poem WHAT DOES HE KEEP IN HIS BAG? The slugger keeps something in his bag, Everyone has seen him unzip The slugger is friendly, even to rookies, Written by Tim Peeler | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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