Friday, October 19, 2007
Headlines--- Archives—October 19, 2000 ######## surrounding the article denotes it is a “press release”
------------------------------------------------------------------------------- Archives—October 19, 2000
American Business Leasing (gone) ------------------------------------------------------------------------------- Classified Ads—Legal/Leasing Attorneys
San Diego, CA Experienced in-house corporate, equipment leasing and financial services attorney seeks position as managing or transactional counsel. Willing to relocate. Cell Phone: 760-533-4058; Attorneys specializing in leasing seeking clients:
------------------------------------------------------------------------------- Editor's Notes:
Would like to thank Maria Martinez-Wong for serving as editor during my almost month long vacation without my lap top. Thanks should also go to her husband Brian Wong, who posts Leasing News after he leaves his regular job at midnight, plus Gretchen Gabriel for her administrative work and help with graphics. It is great to be back in the U.S. of A. Christopher Menkin, editor
------------------------------------------------------------------------------- Hot Firecracker Sale: NetBank Business Finance by Christopher Menkin
FDIC spokesman David Barr in Washington, DC, said bids for NetBank Business Finance will be opened next Tuesday, October 23, 1pm EDT. He said during the attempt to sell the bank there were many inquiries and much interest in purchasing the leasing and finance division by itself from all over the country. Several mentioned Leasing News. He believes the FDIC is going to receive top dollar for the transaction. NetBank Business Finance is the jewel of the operation. Depositors are protected up to $100,000 by the FDIC and ING Bank has taken over these “liabilities” to the bank in receivership. ING Bank is soliciting depositors directly, too.
While a date has not been chosen to close the bidding, Barr says they can accept the best combination, meaning for the portfolio, for the staff operation, or the company itself, or a combination with other assets and/or liabilities. The FDIC is the sole decider of the best offer or offers from the sealed bids. NetBank Business Finance CEO Dwight Galloway said the transition from NetBank to the FDIC control did not stop the leasing company operation for one minute; the approval, processing, funding of transactions. He said the FDIC representatives were highly competent and have seen his company in operation. Despite the complications of the process, it went surprisingly smooth, he said.
“We have highly skilled, hard working, and very knowledgeable staff with high production rates, “he said. “This is a company, not just a portfolio. It has a twenty year track record.” He believes the company will be sold as a whole unit. “You wouldn't want to buy the car without an engine, “he explained, adding. “I want your readers to know how really remarkable the FDIC is making this difficult process work so smoothly. They wil l make the final decision and I think it will be the best for all involved.” Leasing News has asked Bruce Kropschot, Kropschot Financial Services, on our advisory board, to write an article regarding the sale of employees without the portfolio, as it may apply to NetBank Business Finance, LaSalle National Leasing, and perhaps some other leasing companies that are also up for sale. Kropschot Financial Services has been for many years the leading provider of merger and acquisition advisory services for equipment leasing companies, having initiated the sale of more than 150 businesses. He has been active in the equipment leasing industry since 1972 and has been a senior executive of three large leasing companies. Here is the FDIC offering from their web site:
From this site: More information on the bidding procedure: Recent NetBank Business Finance Stories:
-------------------------------------------------------------- Marlin skids below $15, but recovers
Once the darling of the small ticket leasing market, Marlin Business Services has let go its main sales staff, now adding new personnel in the direction of unsecured business loans, according to their SEC report, while trying to also hang on to a new division in factoring and keep leasing brokers happy, too. Many brokers are leaving to join those who left Marlin recently. By December, investors will realize how much broker business Marlin was counting on. Stockholders have contacted Leasing News regarding rumors that Marlin is for sale. No one at Marlin is talking to Leasing News, but their NASDAQ report basically says it all, sliding again below $15, but managing to go above the line at closing.
Last Trade: 15.11
----------------------------------------------------------------- Subprime Credits in “Story Credit” List
The “Story Credit” list now includes leasing companies that specialize in “subprime leases.” This information was obtained from the company's footnotes or web site or direct information. There are other “story credit” leasing companies and funders who accept “subprime leases,” but do not appear to specialize in them. If a company notifies Leasing News that they want to be listed as doing “subprime leases,” this will be added to their listing: Story Credit Lessors These companies specialize in "C" and "D" credits, often new 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. Also listed below the dollar amounts are companies that who are known for accepting "subprime leasing." (To qualify for this list, the company must be a funder and not a "Broker/Lessor" or "Super Broker/Lessor", 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.) We encourage companies who are listed to contact us for any change or addition they would like to make. Adding further information as an "attachment" or clarification of what they have to offer would be helpful to readers is very much encouraged. Business Reports: Companies listed may make any netiquette comment about their company or reports or other information in the footnote section of their listing. Leasing News recommends readers also view the footnote as well as the section itself or searching reports on the business. It also should be noted that if a BBB report listing is found by a reader, as there may not have been one when this was last up-dated, please send the link to maria@leasingnews.org so Leasing News may up-date this section. (for Broker/Lessors List "A," please click here, for list "B," pleae click here, Leasing Associations: All non-profit leasing associations are abbreviated. To see the full name and learn more about the association, please click here. BBB - Better Business Report | CBB - Leasing News Complaint Bulletin Board ( To apply to be listed, please fill in this form and fax to 408.374.3843 or you
Business Reports: Companies listed may make any netiquette comment about their company or reports or other information in the footnote section of their listing. Leasing News recommends readers also view the footnote as well as the section itself or searching reports on the business. It also should be noted that if a BBB report listing is found by a reader, as there may not have been one when this was last up-dated, please send the link to maria@leasingnews.org so Leasing News may up-date this section. BBB - Better Business Report | CBB - Leasing News Complaint Bulletin Board ------------------------------------------------------------------------------------- (A) Pawnee Leasing Corporation; Some times we go higher than $30,000, but our marketplace is from $1,000 to $30,000. Broker Qualify - One year time in business (B) * Allegiant Partners has expanded their maximum transaction size from $250,000 to $500,000 for the 5 western states of California, Oregon, Washington, Nevada and Arizona. (C) Mesa Leasing, Inc., Industries served: Titled vehicles (Trucks, trailers, OTR, etc.), Construction, Restaurants, and all the other "hard to get approved" industries. Broker Qualify - NAELB Members preferred but not required (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. Broker Qualify - Broker Qualification, contact: Rowan Clark, Credit Manager (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. Broker Qualify - Please Call (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) Barrett Capital Corporatio: Broker Qualify - Please Call (I) (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. Broker Qualify - A deal in hand and a full package (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. Broker Qualify - Call or visit www.dakotafinancial.com/ broker.html (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'." Broker Qualify - Please Call (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." Broker Qualify - Please call Broker Manager, Todd or Jason (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. Broker Qualify - Please Call (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." Broker Qualify - Please contact Larry LaChance (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. Broker Qualify - Please Call or see "Prospective Broker" section on website (Q) American Leasefund, Inc. funds small hard to do transactions under $50,000.00. Most of the transactions are "app only". We look for additional collateral or larger first payments to help the weaker credits. We maintain and service our own portfolio. All of our lessee billings are done via ACH. Broker Qualify - Please Call (R) Dolsen Leasing has served the 11 Western States since 1958 and specializes in B & C Credits for established and new companies. We require a full financial package and offer both leases and financing for new and used equipment in the range of $10,000.00 to $250,000.00. Specialties include titled vehicles for both existing and new owner operators. Story credits are considered as long as credit has been reestablished and trends are positive. Credit decisions are based on old fashioned common sense, not credit scores, allowing us a very quick turnaround-often the same day. We accept broker business and also have in house salesmen. Broker Qualify - Please call or visit www.dolsenleasing.com (S) We at Summit Leasing consider ourselves to be primarily "B" credit lenders, working almost exclusively through brokers. Broker Qualify - Contact us (T) TechLease - due to previous experiences, TechLease is vertically focused on three primary sectors: Semiconductor, Media and Aerospace. We fund all deals and hold paper an all equipment under $250,000. Deals over $150,000 we typically want to meet the Lessee face-to-face. We prefer business in California, however we will fund nationwide. Broker Qualify - Please Call (U) Radiance Capital LLC, specializing in B Credits, Story Credits, & More. Radiance Capital currently operates in AK, AZ, CA, CO, ID, OR, WA. Click here to read our product overview and Press Release. (V) Agility Solutions; we fund all equipment used by Wireless Internet Service Providers. (W) Forum Financial Services, Inc., prefer venture capital backed start-ups and middle market to large corporate turnaround companies including companies in bankruptcy and post bankruptcy. Our absolute minimum sales for an established business with financial problems are $10.0 million. (this does not include venture capital backed start-ups). Broker Qualify - Please visit our website at www.forumleasing.com or call 972-690-9444 ext. 225 (X) Advantage Funding - While we also consider quality equipment leasing as a funder, in the title vehicle leasing business, we consider all types of situations and credits and speciality vehicles for commercial use. We have a history of understanding all types of title vehicle leasing. Broker Qualify - Please Call (Y) Gonor Funding specializes in hard to fund leases with D credit. Collateral based with good rates and commission program. Broker Qualify - Please Call (Z) TEAM Funding Solutions is a structured lender for brand new businesses or for older companies with previous credit problems. We do not credit score. The secret to producing an approval for C-Credits starts with interviewing your customer." Broker Qualify - Click here for Broker Enrollment Form. (AA) Calfund, LLC finances 18 wheelers and some trailers for owner operators with substandard credit. (BB) North South Leasing - We offer a second chance leasing option for Semi's. We install GPS on every truck and the customer pays $400; the unit is unique to that truck so it is non-refundable. Borkers earn a 5% commission. --------------------------------------------------------------------------- CIT takes subprime hit/takes action
"Net loss attributable to common shareholders was $46.3 million for the current quarter, versus net income of $290.8 million last year." Despite the home lending segment, the CIT Group, NY, said their “... results were driven by improved finance revenue on higher earning assets, stable net finance revenue as a percentage of average earning assets, continued strong commercial credit quality, lower expense levels and a lower effective tax rate. “We made good strategic progress this quarter in a very challenging market environment which highlights the value of our model and the resilience of our franchise,” said Jeffrey M. Peek, Chairman and Chief Executive Officer of CIT. “CIT's commercial businesses continued to perform well with strong asset growth, increased revenues and stable credit quality. We also advanced our home lending liquidation strategy and mitigated risk through plans to sell $875 million worth of non-performing loans, all while raising $10 billion in asset backed financing.” In addition, CIT Group announced that it has made plans to sell 24 million equity units with a stated amount of $25 for a total stated amount of $600 million. The net proceeds will be used for general corporate purposes. The Company has also granted the underwriters a 30-day option to purchase up to 3.6 million additional equity units, or an additional stated amount of $90 million to cover over-allotments. The equity units will initially consist of a contract to purchase CIT common stock and a 2.5% beneficial ownership interest in a $1,000 principal amount senior note due November 15, 2015. Under the purchase contract, holders are required to purchase CIT common stock no later than on November 17, 2010. Morgan Stanley & Co. Incorporated and Citigroup Global Markets Inc. are the joint bookrunners for the offering and Banc of America Securities LLC, Goldman, Sachs & Co. and Lehman Brothers Inc. are co-managers. It is not secret regarding the subprime mortgage write-offs of major banks and financial institutions, such as CIT. According to CIT other action they have taken includes: § Closed the orig ination operations (as previously announced) and recorded a pre-tax charge of $39.6 million (EPS decrease of $0.12); § Retained $9.7 billion of the portfolio to be liquidated under contractual terms over time (now classified as held-for-investment), of whi ch approximately $7.5 billion of collateral was securitized (proceeds of $4.3 billion in September and $0.8 billion in October, accounted for as on-balance sheet non-recourse, secured borrowings); § Contracted to sell approximately $875 million of non-perf orming and delinquent loans in October at prices approximating the September 30, 2007 adjusted carrying value. Continuing to market the balance of loans in held-for-sale; and § Generated $23 million of income in the home lending segment, excluding the afo rementioned charges, (EPS contribution of $0.12). Full press release with financial statement and conference call:
-------------------------------------------------------------- Ahsan: UAEL Volunteer of Month
QuailCap CEO Mohammed Ahsan has been in the leasing industry for over 26 years; the majority of that time with major banks and financial companies such as Crocker Bank, Westinghouse Credit, Atlantic Financial Bank, Mitsubishi Bank, Bank of California and First Sierra Financial. In 1999, Mohammed culminated his career in which he has been responsible for over a billion dollars worth of lease fundings by co-founding Quail Capital Corp. He has served as its President ever since. Mohammed Ahsan has served twice as Regional Chairman for United Association of Equipment Leasing Los Angeles/Southern California Region and on the UAEL Board of Directors Nom ination Committee. He has also addressed conventions and seminars for UAEL. Mohammed is also active in the community. He is President elect of the U.S.-Bangladesh Business Forum and Vice President of the City of Los Angeles Lotus Festival Advisory Board. In 2006, he traveled to China as a member of a business delegation lead by LA's Mayor's Office and the Latin Business Association (LBA). He received his MBA in 1980 from California State University. Mohammed Ahsan -------------------------------------------------------------- ***announcement************************************* Dear friends and associates: It is our pleasure to announce the promotion of Rick Rodman to the position of Vice President – Credit. Rick as been a key member of our team since inception. Please join us in congratulating him. Sincerely, Quail Capital Corp ****announcement**************************************** -------------------------------------------------------------- Classified Ads---Help Wanted
Leasing Industry Help Wanted Funding/Lease Processor
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------------------------------------------------------------------------------- ELFA Conference: Register at Door Available
Registration on line is now closed for the 46th Annual Equipment Leasing and Finance Association (ELFA) Convention, October 28 – 30, Orlando, Florida. Registration is available at the convention site. There are now a limited number of rooms available at the Walt Disney World Dolphin Hotel. Please call the ELFA group coordinator, Nadia Rodriguez, at 407-934-4861 for assistance, if need. A full slate of breakout sessions covering crucial industry issues. Unparalleled networking opportunities. If neither of those are enough to pique your interest over ELFA's 2007 Annual Convention, perhaps the fact that this year's convention features prominent speakers selected to both inform and entertain. And if you want specifics… Winner of the 1978 Pulitzer Prize for distinguished commentary and a member of the Pulitzer Board from 1995 to 2004, William Safire has a long and distinguished career in American letters. Working as a senior White House speechwriter for President Nixon, Safire went on to write a political column on the Op-ed pages of The New York Times from 1972 to early 2005, and continues to write a Sunday column, "On Language," which has appeared in The New York Times Magazine since 1979. In addition to his duties at the Times, he has also published 14 books and received the Presidential Medal of Freedom in 2006. Mr. Safire's keen observations and insights involving nearly thirty years of American and world politics, as well as his longstanding association with the publishing industry makes this an opportunity not to be missed. All of which adds up to just one more reason we can count on seeing you in Orlando! Those attending— by name: by company:
-------------------------------------------------------------------------- First South Bancorp, Inc. Reports September 30, 2007 Earnings
Washington, North Carolina - First South Bancorp, Inc. (NASDAQ: FSBK) (the “Company”), the parent holding company of First South Bank (the “Bank”), reports its unaudited earnings for the quarter ended September 30, 2007, the third quarter of its fiscal year ending December 31, 2007, and its unaudited earnings for the nine months ended September 30, 2007. Net income for the quarter ended September 30, 2007 was $4,258,258 compared to net income of $4,317,013 earned in the quarter ended September 30, 2006. Diluted earnings per share were $0.42 per share for the quarter ended September 30, 2007 and $0.43 per share for the quarter ended September 30, 2006. Net income for the nine months ended September 30, 2007 was $12,867,342 compared to net income of $12,827,219 earned in the nine months ended September 30, 2006. Diluted earnings per share were $1.28 per share for the nine months ended September 30, 2007 and $1.29 per share for the nine months ended September 30, 2006.
“The relatively flat yield curve between short-term and long-term interest rates, combined with the Federal Reserve Bank's rate cut and intense competition provided a challenging interest margin environment during the current quarter,” Tom Vann, President and Chief Executive Officer of the Company, stated. ”Looking forward to the fourth quarter and to next year, we are cautiously optimistic as intense competition and pricing pressures continue on both deposits and loans, and will continue to challenge asset and liability and interest rate risk management. Although we are pleased with our current quarter and year-to-date performance, we do anticipate some volatility ahead.” Full press release at: #### Press Release ############################ McFadden Launches New Company Robert McFadden, Ex VP of GE Capital's Office Imaging Division has formed the McFadden Consulting Group (MCG). MCG will be providing assistance to OEM's, Distributors and VARs with all their equipment leasing decisions. The services will range from streamlining vendor's internal leasing processes, to helping them determine the right leasing partners to assistance in program agreement negotiations. MCG will assist equipment / bank finance companies in several areas as well, such as ; the formation of vendor leasing divisions, developing compensation structures, value proposition & product segmentation as well as sales force training. McFadden has over 20 years of experience in the vendor leasing industry in various senior level roles. #### Press Release ############################## U.S. Bank Equipment Finance Names New Vice Presidents In Vendor Finance Group.
CHICAGO and JACKSONVILLE, Fla. — U.S. Bank Equipment Finance has named Lou Altobelli and Brian Phelps as vice presidents of sales and business development in its vendor finance group, with a primary focus on building and managing vendor programs with dealers and manufacturers of equipment applied in the healthcare industry. Altobelli has 25 years of success developing and managing vendor programs tailored for the changing business needs of the industry's vendors. He was most recently a program general manager with GE Healthcare Financial Services, where he managed its largest vendor program. Prior to that he was with HPSC, Inc.'s Medical Group, American Express Business Finance-Healthcare Finance group, GE Capital's Vendor Financial Services, and Trans Leasing. With more than 22 years of lease finance experience, Phelps has held senior level positions in sales, marketing, operations and asset management. Most recently he served as senior vice president business development with Heartland Business Credit, Inc. and prior to that held leadership positions with Wells Fargo Financial Leasing, Inc., Innovative F |
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