expand your business · 2018-04-24 · business expansion •create additional lines of business...
TRANSCRIPT
Expand Your Business
Equipment Leasing and FinTech for Vehicle Lessors
Panelist Introductions
• Ed Kaye, Access Commercial Capital a division of United Leasing
• Allan Levine, Madi$on Capital
• Stu Lustman, P2PLendingexpert.com
Presentation Outline
• Why this topic is relevant
• Business Expansion
• Protect Your Best Business
• Equipment Leasing Overview
• Fintech Overview
Business Expansion
• Create additional lines of business and revenue streams
• Easily integrated into your existing platform
• Non-distruptive – Solicit your existing customer base without disrupting the
normal sales process
• Advertise it on your email logo, website, or other correspondence
• Recourse and nonrecourse programs available
Equipment Leasing
• Examples:
• Finance shop equipment for transportation companies
• Gurneys for ambulance and ambulette companies
• Bus wash equipment for bus companies
• Credit driven process
Equipment Leasing
• Compliance issues
• File a UCC-1
• A UCC-1 financing statement (an abbreviation for Uniform Commercial Code-1) is a
legal form that a creditor files to give notice that it has or may have an interest in the
personal property of a debtor (a person who owes a debt to the creditor as typically
specified in the agreement creating the debt).
Equipment Leasing
What’s the process?
• For transactions under $250,000
• Credit application
• Bank statements (3 to 6 months)
• Equipment description
• For Transactions over $250,000
• All the above
• Two years tax returns or financial statements
• Interim financial statement
• Personal Financial statement
Working Capital Loans
• Working Capital
• $40B industry
• Your customers are already utilizing it!
• Rapid Advance, Channel Partners, OnDeck, Funding Circle, Kabbage, etc…
• Utilized for project financing, opportunity loans, unexpected expenses
Working Capital Loans
• Rates
• Not for the faint hearted!
• Full transparency and disclosure up front is critical
• Usually daily ACH
• 20% and up!
• Can also consider cash out refinancing of collateral if feasible
Working Capital Loans
• Non recourse fee driven product
• Submit a credit application and 3 – 6 mos bank statement
• Usually have real time credit updates from initial submission to funding to commission
payment
• The Lessor can be as intimately involved in the process or as uninvolved as you wish
What is Fintech?
Fintech is the marriage of FINance and TECHnology.
• Firms use tech where they can to make borrowing or other financial
services (payments, compliance) simpler and faster than conventional
lenders
• Many are better capitalized than captive lessors
• Provide both a value added resource to your business with additional loan
products AND are an indirect threat to your bread and butter leasing
business.
August 2007
Lending Club issues first
loan
March 2010
Lending Club loan
volume reaches $100
million
November 2012
Lending Club loan
volume reaches $ 1 billion
June 2015
Lending Club loan
volume reaches $10
billion
Year End 2016
Lending Club issues over
2 million loans for $24.6
billion in volume
Lending Club’s History: Biggest Fintech Player
Fintech: You Have Many Indirect Competitors Online
Banks
Banks are getting into
online lending in record
numbers
● Suntrust
● Goldman Sachs
● Wells Fargo
Fintech Firms
Financial Technology
firms are working to
disrupt ALL lending
including small business
● Lending Club
● Prosper
● Kabbage
Hybrids
Firms that use fintech and
provide some banking
services already
● Paypal-Working
Capital & Swift
acquisition
● Amazon-lending for
online merchants
Competitor:Wells Fargo Fastflex Sm Biz LoanLaunched in May 2017
Loans up to $100,000
Weekly payment structure
Direct comparisons in
pricing with Can Capital,
OnDeck and Kabbage
Link:
https://newsroom.wf.com/
press-release/consumer-
lending/wells-fargo-
launches-
fastflex%E2%84%A0-small-
business-loan
Fintech Can Add Value, Too
While some fintechs target your customers, others want to partner with you
• MCA firms and Working Capital lenders know YOU are a great source of
business for them and THEY are a good source of additional revenue for
you
• Their technology and speed is your advantage while you close your lease
with the customer.
• Make sure your Equipment lease UCC-1 is filed first and deal closed
Fintech companies that target relationships with
Lessors
• Channel Partners Capital (www.channelpartnerscapital.com)
• Rapid Advance (www.rapidadvance.com)
• Funding Circle (www.fundingcircle.com)
Questions?
Q & A