national equipment finance association funding issue · 2018. 4. 4. · board of directors national...

inside this issue:Evolving from a BrokEr to a lEssor

third Party funding

ovErcoming dischargEaBility of dEBt

aPhorisms of good customEr sErvicE

newslineNational Equipment Finance Association

MAY/JUNE 2013Vol. 5, No. 3

funding issuE

2 nEwslinE | MAY/JUNE 2013

NEFA HEAdqUArtErsP.O. Box 69Northbrook, IL 60065-0069847-380-5050 main847-380-5055 [email protected]

ExEcUtiVE dirEctorGerry [email protected]

sENior AssociAtioN coordiNAtorKim [email protected]

NEwsliNE EditorLisa [email protected]

AdVErtisiNg sAlEsLisa [email protected]

dEsigN & ProdUctioNR&W Publishing Associates315 Poplar Ave, Suite P564Devon, PA [email protected]

NEFA Newsline ©2013 is published by the National Equipment Finance Association. All rights reserved. All opinions expressed in the articles, analysis, interpretations, etc. within this publication are solely those of the individual. For editorial information, please contact Lisa Rafter at 215-765-2646.

newsline

contents MAY/JUNE 2013 • Vol. 5, No. 3

18

16

7 EVolViNg FroM A BrokEr to A lEssor By Joe Andries

10 FUNdiNg soUrcE dirEctorY

11 tHird PArtY FUNdiNg By Bob Fisher, CLP

16 BEiNg iNForMEd… AddiNg tHE 3rd diMENsioN oF sUccEss to YoUr PortFolio By Michael O’Connor

22 tHE VAlUE oF todAY’s AssociAtioN MEMBErsHiP: MiNiNg tHE MEMBErsHiP For its VAlUABlE AssEts By Mike Coon

dEPartmEnts

14 lEgal line A crEditor’s rEMEdY For oVErcoMiNg discHArgEABilitY oF dEBt By Anthony L. Lamm

18 BrokEr line tHE APHorisMs oF good cUstoMEr sErVicE By Theresa Kabot, CLP, BPB

20 NEFA tidBits

23 mEmBEr line sHANNoN sMitH, crEdit ANd FUNdiNg MANAgEr, klc FiNANciAl

nEwslinE | MAY/JUNE 2013 3

ExEcutivE committEE

PrEsidENt JoHN rosENlUNd, clP PORTFOLIO FINANCIAL SERvICING COMPANY

VicE PrEsidENt kYlE gilliAM, clP ARvEST EqUIPMENT FINANCE

trEAsUrEr JoHN doNoHUE DIRECT CAPITAL CORPORATION

sEcrEtArY tArA AAsANd GREAT AMERICAN INSURANCE

iMMEdiAtE PAst-PrEsidENt HUgH swANdEl ThE ALTA GROUP

Board of dirEctors

MikE cooN TAB BANK

williAM Ford FORD FINANCIAL SERvICES, INC.

BrAd HArMoN, clP FIRST STAR CAPITAL

tErEY JENNiNgs, clP FINANCIAL PACIFIC LEASING, LLC

JEssE JoHNsoN LEASETEAM, INC.

JiM MErrilEEs, clP TIP CAPITAL

dAVid NorMANdiN, clP PACTRUST BANK EqUIPMENT FINANCE

BrUcE sMitH, clP DIvERSIFIED CAPITAL CREDIT CORPORATION

gArY soUVErEiN PAWNEE LEASING CORPORATION

diANE williAMs BANKERS LEASING COMPANY

nEfa 2013 Board of dirEctors

National Equipment Finance Association

lEttEr

From NEFA’s President

funding—the Engine that drives the EconomyHow time flies by! As you read this, almost half of 2013 is behind us. As we enter the second half of 2013, there are still mixed opinions as to our recovery; availability of cost effective capital and are we making progress? That answer varies:

• Depending on whom you are talking to • Which environment you operate in • How you define progress.

While reading several recent articles from prominent industry operators, they report very positive outlooks but still see stress based on lower close ratios

caused by uncertainty in the economy and the lack of real progress in resolving the tax and budget issues. Many are also concerned by the stock market rise and that we may be setting ourselves up for another decline this summer which leads to more uncertainty and renewed tightening by lenders.

Many of you attended the NEFA Spring Finance Summit in Albuquerque and we saw and heard a very posi-tive buzz and outlook by the majority of attendees. I also just returned from the NAELB National last week and experienced a similar buzz and optimism. We are operating in a new economic environment and trying to compare this recovery to the “good old days” of 2005-8 is apples to oranges as many of the dynamics have changed and survival will require new processes and back to basics underwriting. You will see several articles in this edition of Newsline from noted industry leaders on funding topics which will discuss this and other strategies in greater detail.

Once the mechanisms to provide capital to the small business’ in this country (those that employ <100) are in place and functioning, we will see other issues (unemployment, housing and perception) improve drastically which will strengthen the economy so we can focus on moving forward.

What else is happening? We have many regional events planned this summer (see the website) and others that will be announced. An ILP (Institute for Leasing Professional) is being hosted by Orion Financial in the Seattle-Tacoma area in July (CLP candidates and those needing training-here is a great opportunity).

As I discussed in my last letter, one of the Boards prime objectives is to develop and implement tools and resources that enhance our member’s investments in belonging to NEFA. Great conferences, regional events, education and training are a good start. The Board has made significant progress and will be implementing in the next quarter several initiatives to add even further value. Many of you have seen the recent articles and posts by NEFA members covering recent or critical issues in the legal and regulatory arena which impacts how we do business. Those will continue and we hope you read and share these with your staff and other colleagues. We are still refining the “Documentation library” and “Ask an Expert” enhancements and hope to implement soon. These will assist our members with sample type documents and assistance in general leas-ing and financing environments.

We are also looking to upgrade for the ILP and though I don’t want to steal his thunder, an upgraded web-site which Gerry will go over in more detail in the future. Hopefully, this will be ready to roll out by the Fall Funding Symposium. Speaking of which—please mark your calendars for this event to be held October 10-12th in Nashville at the Marriott at Vanderbilt University. I have visited and stayed there and it is a top notch venue along with the sights and sounds that Nashville is famous for.

We expect a robust attendance and will have an expanded selection of educational sessions along with our industry leading Service Providers, Funding sources and Broker-Lessors that represents a “who’s who” in the financing sector. Stephanie Hall is our conference chairperson and has already been hard at work to make this the “have to attend” conference of 2013. We hope to see you there!

As I close, I want to remind the readers this association belongs to all of us and what we do individually and collectively is what will make NEFA successful. If you have not already, please join a committee or volunteer to write articles, assist in updating the ILP or if you have ideas or a concept to discuss, please contact myself, Gerry Egan or any Board member for details. Finally, a big thank you to the Board for their hard work, our professional staff and last but certainly not least, our members who are the “engine of this association.”

Have a great summer and take advantage of our Regional and Educational events to stay in touch.

John G. Rosenlund, CLPDirector—Risk ManagementPortfolio Financial Servicing Company

John g. rosenlund, clPDirector Risk Management Portfolio Financial Servicing Company


lEttEr

From NEFA’s Executive director

nEfa members are an active bunch. right now, our events calendar lists the most events it’s listed in a long time. that’s such a great thing to see; it’s such a good sign and says so much about the spirit and forward vision of our membership.

Every event you see there, remember, started as an idea in a NEFA Member’s mind and ended up as a scheduled event through a combination of that member’s initiative and the co-operative volunteerism of other members.

The members who organize and drive those events aren’t just benefitting NEFA as an association. They’re also the mem-bers who get the most benefit back from their membership, too. Membership isn’t a status to be posted. It’s a process to follow, to work, and then to follow up on some more. It’s an investment, and involvement is the best investment; it yields the highest dividends.

A recent member posting in our online NEFA-teria blog (look on the website under the menu item ‘News & Publications’) talked about the importance of —and value of—being a truly active member.

The NEFA-teria itself is an example of a member driven, on-going event of sorts. It’s an always-open, sort of lunch table talk offering the kind of conversations you’d find interesting and helpful at NEFA conferences. However, just like those lunch table conference conversations, or their afternoon bar equivalents, they’re only interesting and helpful because mem-bers actively participate and share what they’re thinking and have learned. Speak up regularly, online in the NEFA-teria. You don’t know who you might be helping out. Just as important, though, is that the visibility it will bring you is likely to involve you in even more conversations which will, in turn, help you in your own business.

Elsewhere in this issue of Newsline, Mike Coon also talks about how to get the most from your NEFA Membership and conference attendance. He points out the difference between just having contacts and having actual relationships.

The fact is that companies don’t do business with companies. People within one company do business with the people within another company. We all know that to thrive competitively we have to offer more, to do business on more than just a commodity basis or we’ll never stand out and step ahead. That takes customized thinking and strategic thinking. That, in turn, takes customized relationships. That’s perhaps no truer anywhere than in funding relationships.

That’s a huge part of the value of your NEFA Membership and your conference attendance. One exhibitor told me, earlier this Spring while at our Summit in Albuquerque, that he always appreciated getting to meet new folks when he could but that his real value from participating was the ability to spend quality time, both talking business and relaxing over a couple of days, with multiple existing clients, further building and cementing the kinds of personal relationships that allowed him to work with his clients as partners and not just contacts or customers. The ability to plan on that a couple of times a year without having to make dozens of trips around the country, saved him many tens of thousands of dollars a year, he said.

Now go back to our calendar of events. Look there and find something, somewhere that you can benefit from in that same way. If there’s not one there that suits you, suggest one. Get with a couple of other members and make one happen. You’ll be glad you did.

Thanks,

Gerry Egan Executive Director Direct Phone: 847-380-5052 Email: [email protected]

gerry EganExecutive Director


members on the movENational Equipment Finance Association


PErsonnEl nEws

clP FoUNdAtioN ANNoUNcEs lEsliE BrowN As NEw cErtiFiEd lEAsE ProFEssioNAl

The board of directors of the Certified Lease Professional (CLP) Foundation announced that Leslie Brown, senior port-folio manager at TEAM Funding Solutions (TEAM) passed the CLP exam and has earned CLP Designation.

Brown said, “Nothing worth having comes easily – achieving my CLP certifica-tion took hard work and dedication. My

rewards are knowledge and accomplishment. On my path to becoming a professional in this thriving and honorable industry, I realized that becoming a CLP was a must. I’m truly grateful for the opportunity.”

The foundation said there are currently 169 Certified Lease Professionals throughout the world.

MAxiM coMMErciAl cAPitAl HirEs MAE PHilPott As BUsiNEss dEVEloPMENt dirEctor

Maxim Commercial Capital announced the hire of Mae Philpott as the company’s business development director, effective immediately. In her new role, Mae will be charged with building the company’s bro-ker referral base as well as vendor direct business.

The Los Angeles-based group was estab-lished in 2008—after the economic down-

turn—to meet the commercial financing needs of businesses across various industries unable to qualify for conventional funding.

Mae comes to Maxim from Dakota Financial where she served as the sales & marketing director. Prior to Dakota, she held various positions in marketing, sales, and public relations.

roBErto FErNANdEz JoiNs tHE AltA groUP The Alta Group has appointed Roberto Fernandez as busi-ness process and applications consultant for its Latin American Region (LAR).

Fernandez’s broad expertise in financial and information tech-nology (IT services) includes notable skills in business planning, operations streamlining, project management professional (PMP) services, risk management, database design, accounting and tax-es in the Latin American region.

As CIT’s former vice president and chief information officer (CIO) in Latin America, serving Mexico, Brazil, Colombia, Chile, Argentina and Puerto Rico, Fernandez led the implementation of several important projects.

Any Credit Score • Past Bankruptcies • Liens and Judgments Start-ups • Sale-Leasebacks • Owner-Operators

Your client’s credit history may be challenging, but getting their deal done won’t be. We approve:

We keep it simple.

CALL 310.696.3030 • FAX 310.696.3035

WWW.DAKOTAFINANCIAL.COM

Your most challenging deals. Done.

http://www.bfec.com

http://www.dakotafinancial.com

BEAcoN FUNdiNg Adds osHEl to EqUiPMENt FiNANciNg tEAMBeacon Funding has added Scott Oshel to its equipment financing team. He brings more than 20 years of diverse equip-ment financing experience to Beacon, which broadens the reach of its financing capabilities.

Based in Robbinsville, NJ, Oshel’s prima-ry responsibility at Beacon will be to help his business clients acquire the equipment they need to grow. He will also help equip-ment dealers increase sales by expanding the competitive payment options they offer to clients, the company said.

industry nEws

dirEct cAPitAl oFFErs cUttiNg EdgE solUtioN to cHoicE HotElsDirect Capital announced a cutting-edge technology to a partnership with Choice Hotels, making it easier and faster than ever for franchisees to obtain needed financing.

MAdisoN cAPitAl coMPlEtEs FiNANciNg For sUBwAY FrANcHisEEs iN PUErto ricoMadison Capital completed financing for $600,000 of new ovens for 25 res-taurant chain franchisees throughout Puerto Rico. As the financing provider, Madison Capital worked with Subway’s independent purchasing co-op (IPC) and the Development Agent for Puerto Rico in understanding the franchisees’ business requirements and what was important in structuring a financing package that met their goals.

dirEct cAPitAl rElEAsEs gUidE For EqUiPMENt VENdorsDirect Capital has released a new guide designed to help equipment dealers iden-tify the best partner to provide financing solutions for their customers and increase sales.

qUiktrAk rElEAsEs rEVoqUEst wEB 3.0Quiktrak has released Revoquest Web 3.0, an upgrade to its floor plan inventory management technology solution.

Revoquest Web 3.0 offers a more aesthet-ic design to improve user efficiency and experience. The upgrade also includes a host of new features, including an all-in-one home page dashboard that displays an overview of critical information to the user around the globe.

iFs ANNoUNcEs NEw NAME & ProdUct ENHANcEMENtsIFS Technology Solutions, formerly known as Integrated Financial Solutions, announced its new corporate name and enhancements to IFSLeaseWorks, used by banks, captives, and independent leasing companies in the United States to man-age leases and loans efficiently throughout their lifecycle.

Mitchell Kaufman, president of IFS Technology Solutions, said version 3.5 of the company’s IFSLeaseWorks product includes a participation module that sup-ports unlimited numbers of investors.

The company also has expanded IFSLeaseWorks functionality for floating rate leases.


members on the movENational Equipment Finance Association


http://www.equipmentengine.com


Although the leasing industry appears to continue its recov-ery from the 2008-2009 eco-nomic downturn, the memory

of those turbulent times should remain top of mind. As a wise philosopher once said “Those who don’t know history are destined to repeat it.” To follow that advice, brokers should take note of valu-able lessons to be gleaned from the recent recessions.

A broker is only as successful as their access to diversified funding sources. During the exodus of funding sources in 2008-2009, many brokers remember receiving the call or letter informing them of the bad news, that funding was no lon-ger available. There were many brokers who experienced sleepless nights and were in panic mode as they scrambled for alter-natives to maintain revenue and save pro-gram relationships.

The challenges that faced many brokers during the downturn were even broader.

The number of origination opportunities dropped dramatically as companies were not buying or replacing equipment. When brokers submitted the rare applications that came in, the “active” funding sources often turned down credits that would have previously been routine buys. It was hard to place blame on the funding source as their portfolio performance was trending downward as well -- their reduced appe-tite for credit was surely predictable, as witnessed in previous downturns.

Brokers have little ability to influence their funding sources’ credit underwriting, buy rates, or servicing behaviors. The negative impacts of the last downturn were mag-nified as collection protocols became very active, very aggressive, and very customer unfriendly. What was once a great cus-tomer of the broker’s vendor/dealer turned into a nameless collection account for the funding source. Whether a private label broker name was associated or not, these activities often resulted in a questioning

call from the vendor/dealer often plac-ing the broker in an awkward position. Taking it one step further, the broker had to explain that the funding source is no longer a “funding source” and they unfor-tunately “can’t help” in any way. The strong funding partner that was the key to the broker and vendor/dealer success was gone.

Today, capital is abundant and now is the time to learn from history and prepare for future downturns. It is time for bro-kers like you to take action and evaluate strategies that allow for greater control. Surely continue to take advantage of the good fortunes of current credit windows, low delinquencies and unprecedented buy rates, but consider taking the step of diversifying your business from being solely a broker to becoming the lessor for some portion of your originations. This improves your likelihood for sur-vival when the next economic downturn arrives.

As a wise philosopher once said “Those who don’t know history are destined to repeat it.” To follow thatadvice, brokers should take note of valuable lessons to be gleaned from the recent recessions.

BY JoE ANdriEs

Evolving from a Broker to a lessor:galvanizing your resistance against economic downturns

FUNdiNg

The stepwise migration from broker to lessor offers funding diversification, helps capture and maintain strong vendor/dealer relationships, and can ensure proper les-see servicing standards. In other words…you have more control. The transition has many moving parts requiring time and commitment for a successful outcome. It may include holding a small portfo-lio on your balance sheet funded mainly with equity or obtaining debt coupled with equity to hold a larger percentage of your originations. Another strategy may involve holding your paper for a short period and then selling off portfolios in

a warehouse arrangement. Maybe you maintain similar funding arrangements that you employ today, but you hold the residuals and service the paper yourself. In all scenarios, the concept of control is often linked to strategic funding arrange-ments with servicing at the lessor level. The quest for more control by becoming a lessor can take many different paths.

Preparing a business plan is the first step on the path to becoming a lessor. Like most business plans, start with the financial model and then support that model through sales and marketing

strategies, underwriting criteria, and ser-vicing options. Validation that the move to lessor will support your current busi-ness from profit and cash flow perspec-tives is vital. Employ a SWOT analysis to identify strengths, weaknesses, opportuni-ties and threats. A full understanding of your strengths and weaknesses will allow you to determine which “lessor” path to pursue. A well thought out and prepared plan and timeline will not only act as a guide for your transitioning business, but identify where to focus your time and resources.

Upon determining the move from broker to lessor makes strategic sense, what are the common strengths among those les-sors who have survived and thrived in economic downturns?

• strong and divErsifiEd funding and lEnding rElationshiPs: Your funding and lending partners need to be just that, partners. Selecting a partner to build a relationship with takes time and devotion. Look beyond low rates and into sustain-able business practices. Look for a strong track record with a history of success and representation by professionals who can be trusted and take a genuine inter-est in your business. Lessors who continu-ally work on supporting strong working relationships with their equity or debt partners are often rewarded with loyalty during economic down cycles. It’s wise to diversify funding relationships. Funding relationships can include friends and fam-ily, local or regional banks, major lending institutions, or peer companies within the leasing industry.

• nichE focus: Committing to a niche industry, geographic location, or equip-ment type will produce a more consis-tent flow of business and loyalty. By fully understanding your niche, you will appre-ciate the drivers behind your customer’s business. As a lessor, you have the oppor-tunity to become a true partner—fully understanding the business and offering consulting advice. Speak their language. Know the challenges they face so you can help them overcome those hurdles. Be in a position to join them at trade shows and play a part in their annual meetings.

• consistEnt crEdit undErwriting: As a lessor, disciplined credit is a criti-cal component for success. The ability to identify credits that perform to your projections is often the challenge. If you buy too aggressive, your delinquency will rise. If you buy too conservative, your vendor/dealer may choose another fund-ing partner. By aligning your company with a strong and reputable credit scoring


http://www.leasecollect.org


fewer ebbs and flows! It is common for lessors to build a balance sheet that can be more attractive to potential buyers in the future as well. Controlling your customers through a consistent, effective servicing platform can help build brand equity and retain relationships that previously slipped in downturns. There are many major leas-ing companies today that once started as brokers. The evolution from being a bro-ker to becoming a lessor is possible and makes sense. Roll the clock forward—will you be a successful survivor and thrive in the next economic downturn or could you be destined to repeat history? •

model, having a well-documented credit policy, and strong credit team members, the framework is built to have a consis-tent, disciplined credit underwriting pro-cess. Having checks, audits, and reports in place to monitor decisions is imperative. A history of credit decisions and their respective performance results is usually one of the first items investors want to see. New lessors won’t have this on day one, but they do have history available from their broker funding sources that can be obtained to assist in establishing a credit policy and process. Some lessors have elected to outsource their credit process versus building it internally, the prevail-ing thought being ‘Why build the exper-tise when you can instantly gain access to expertise on a pay as you use arrangement through an outsourcing partner?’

• strong sErvicing and oPErations: An established and “well-oiled” servicing backroom in an economic downturn can be invaluable to portfolio performance. Although it doesn’t completely insulate you from portfolio erosion, it’s comforting to know it’s not the cause. A customer cen-tric servicing platform delivers a positive customer experience that can help build brand equity for your organization and your vendor/dealer. Vendors/dealers want quality customer service because their cus-tomers will view the relationship as syn-onymous with their dealer/vendor. This can be a differentiator between you and your competitor. Your bank or investors also want a strong servicing platform, and they want to know the assets that secure their borrowings are being serviced in a manner that minimizes risk. Often times, they want assurances that the servicing platform is fully functional and all policies and procedures are well documented with regular audits before they will even dis-cuss a lending relationship. Building and assembling backroom servicing capability is not easy—it takes time and resources. Outsourcing your backroom servicing is a more common option for new lessors since it does not require a long assembly time or large capital outlay. It also brings immediate credibility to your vendors/dealers and investors. You still control all the servicing albeit through your servicing partner. The ability to couple your servic-ing partner’s financial strength and proven capabilities together with your history of origination success is viewed positively and alleviates most servicing concerns.

Timing a leap to lessor status during an up cycle will most likely improve the ease of transition. As a lessor holding all or part of your paper, you can readily pre-dict future revenue and cash flow - with

ABoUt tHE AUtHor

Joe andries, vice President and General Manager of GreatAmerica Portfolio Services Group LLC, is responsible for the sales, marketing, operational oversight and strategic

planning for the Portfolio Services Group. Prior to joining GreatAmerica Portfolio Services Group in 2010, Joe was the SvP and GM of US Bank’s Portfolio Services and Small Ticket Capital Markets Divisions. Prior to US Bank, Joe spent 12 years with Lyon Financial Services.

http://www.GAIG.com


nEfa funding sourcE dirEctory

allegiant Partners incorporatedChris Enbom

amerisource fundingMarilyn Davis

ascentium capital llcChristine Kimball

Blue Bridge financial, llcBrian Gallo

Boston financial & Equity corporationDebbie Monosson

Bryn mawr fundingStephanie hall

cashmere valley BankChris Ewer

channel Partners llcBrad Peterson

continental BankGary L. McBride

dakota financial, llcMichael Green

diversified lenders, incDonna Giovannetti

lakeland BankBob Ingram

maxim commercial capital, llcShervin Rashti CLP

ncmic finance corporationLisa Logan

Pactrust Bank Equipment financeDavid Alan Normandin

Padco financial services, inc.Jim Padden

Paramount merchant fundingGina Mackenzie

rlc funding a division of navitas lease corpDwight Galloway

securcor financial groupBrian Rodd

signature financialAnthony Perettine

taB BankEric Myers

tEam funding solutionsTed Reynolds

tetra financial groupJared Robertson

varilease financial, inc.Marci Slagle

Bank of the westSteve Crane

capital access network, inc.Luke Schmille

financial Pacific leasing, llcTerey Jennings

firstlease, inc.Donald Richard Wampler III

greatamerica financial servicesKristi Chambers

Pawnee leasing corporationGary Souverein

sterling national BankKeith Smith

summit funding group, inc.Mr. Carl Zwilling

tiP capitalJim Merrilees CLP


As the equipment finance pen-dulum swings to and fro much like the economy, there always seems to be opportunity and

challenge at the same time. If there is abundance of customers but limited capi-tal, then funding is tight and vice versa. As pointed out in the last issue of Newsline, capital markets are now open again for independents. What this means for the broker community may be a very different form of opportunity. Funding is available but now the hunt for product escalates. Funding Sources are challenged today by an environment demanding low touch and high tech speed to win business that appears to be still somewhat depressed.

current landscapeLooking at the small ticket marketplace,

it appears that year to year applications are soft by some 8.3% for 2011 from 2010 (ELFA – 2012 Survey of Equipment Finance Activity). Couple this with credit decision time becoming quicker (almost 25%) and we have a very interesting situation where dollars are competing for limited product. We have come out of a prolonged period of weak funding availability. Also, the broker ranks have been thinned dramatically. This adds up to somethink like the “perfect storm”. Today, funders are grouped by categories: the funder who buys “A” paper, funders who buy “B and C+”, and the funder who buys “structured or C- priced” paper. Add to this the “boutique” funder who specializes in a niche, hard assets or any number of structures (captive sources are not discussed in this article). Focusing on

the thinned broker ranks for a minute, we have lost by some estimates 45% - 50% of those producers. Many just closed and some merged with other stronger compa-nies. Those remaining who are successful are focused on their bottom line and qual-ity customer, understanding what their funder does or does not do. They some-times form formal ties to their funder or even join forces to grow their business.

I see a very confusing and expanding list of funding availability for the broker. So what becomes critical is knowing your customer and transaction forward and backward and actually spending the time to understand you funding source and what they buy. As I look at the numbers today, I see more and more banks putting their hat in the market as funders with sub-market pricing. It does appear that

Funding for the Broker in today’s market is clearly a process of attention to detail, knowing your customer and their transaction and finding the right funding source to make it all happen. Sounds simple...

BY BoB FisHEr, clP

third Party funding

FUNdiNg

generally the “broker “model is not some-thing they embrace. Our history in this business is littered with opportunity gone badly. Couple this with the inevitable undercurrent of fraud and we need to be on guard for the same old history repeat-ing itself. Discipline is the key to success for both the broker and the funder. Add to this the somewhat stagnant need for new equipment and expansion equipment and the independent originator is faced with a monumental challenge.

funding opportunitiesAs a funder looking at our opportunities, I see a lot of brokers chasing the same transactions. Customers are still leery of the economy or world situation and demonstrate that concern with a tenta-tive approach to growing their business. Replacement equipment is still the major-ity of business with minor increase in new equipment. For the funder this means keeping patient, focusing on their model and at the same time being creative within their framework. Ascentium Capital has a strong management team that keeps focused on the business market, credit appetites and our goals. Technology

pushes us to faster and faster benchmarks and at the same time forces a solid risk assessment of products and offerings. You can be fast and focused or fast and out of business.

As a broker in the current environment, what you should expect is that your funder will demand you are focused on their credit window, know your transac-tion and understand what fits and what does not. You will be limited to a simple, fully explained credit submission and if you demonstrate your knowledge of the transaction and credit window, you will be rewarded with the “Approved” mark. The originator who delivers a complete submission along with a solid signed proposal from the customer will win the business! After the approval comes the inevitable documentation process. If as an originator you are knowledgeable of what makes a good document package for your funder, you will have an easier time clos-ing the transaction. As a funder it is my job to provide the necessary documents to make this happen. The broker today must also be focused on various licensing issues and be sure to understand what they need to do business and where. Prime example

is California’s Lenders License, something you do not want to be missing if you are doing business in California. The barrier to enter the business is still relatively low, but to be successful and function long term you need to know and practice more than the basics. Education is critical as originators grow their business, funders will demand that you know your stuff. Both broker and funder should avail themselves of education and certification programs for their staff. CLP certification comes to mind along with others. Those brokers that also demonstrate an interest in their portfolio with their funder will put themselves in a win/win situation. I have mentioned before, the day of getting a deal done is gone, it’s a flawed business strategy and today’s funding source will not tolerate this approach. The broker basically has one chance to get it right – take the transaction off the street, pick the right source, provide a complete overview of the transaction and win the approval. Critical is identifying the right funding source so as not to lose time missing the credit target and the transaction. Others will also be knocking on the door of your customer taking the time to develop the right solution.


http://www.NEFAssociation.org

conclusionThe reality is that for now, there is still a limited supply of new business opportu-nity, an increasing field of funders and a very depleted but strong remaining group of third party originators. The successful funder will differentiate between the solid originator and the “slap it on the wall” originator. Once identified, the funder will reach out and understand its origi-nator’s model and both will continue to embrace good solid business. The broker originator will seek the funder who will provide support for growth. The industry is littered with modified business markets, credit appetites and goals that have ended in nothing but trouble. If we are to learn anything in today’s environment, it will be to remain focused and knowledgeable of our business and funding opportuni-ties. At Ascentium Capital our focus with the independent originator is on growing an efficient, productive relationship with limited numbers of originators. We prefer to focus on quality programs and solid funding. We work with the source that understands it’s a symbiotic relationship and is willing to work together as a team. Aside from knowing our transactions and funders, there also must be a renewal of educational opportunities for our origina-tors. Education will provide the oppor-tunity to really know the credit window, where the document pitfalls are, and how to win within its many faceted structures. Today’s funder and originator have many new motivated young employees who need to learn the proper techniques and ethical way of doing business. NEFA along with the other professional associations can play a continued critical role by provid-ing timely educational opportunities for its membership. Certification programs such as the Certified Lease Professional (CLP) need to be championed. We are headed down a totally new highway with most potholes repaired or gone, but the renovation and repairs only last if, as an industry, we continue our focus with qual-ity programs and educating our next gen-eration. From the chair I sit in, it’s very exciting and intriguing.

Allegiant Partnerst PLet’s get started

call Scott Enbom or Chris Lerma today 415-451-4055

Niche MarketingNiche Marketing2.0

At Allegiant, we look at things a bit differently than Bank Lenders.

It just makes sense. After all. . .none of your clients are the same.

We help make it workso that your clients can get to work.

Version


ABoUt tHE AUtHor

robert J. fisher, clP is Senior vice President at Ascentium Capital, LLC. he can be reached at 281-348-2017 or [email protected].

http://www.ecsfinancial.com

mailto:[email protected]

The law does not sanction unlimited dischargeabilty of debt. Bankruptcy Code Section 523 (11 U.S.C. 523(a)(2)(A)) provides that a debt is not discharged in a bankruptcy proceeding if it was “for money, property,

services, or an extension, renewal, or refinancing of credit, to the extent obtained by false pretenses, a false representation, or actual fraud, other than a statement respecting the debtor’s or an insider’s financial condition.” According to the Legislative History, subparagraph (A) was intended to codify current case law, e.g. Neal v. Clark, 95 U.S. 704 (1877), which interprets “fraud” to mean actual or positive fraud rather than fraud implied in law. A state court judgment that the debtor commit-ted fraud is entitled to collateral estoppel effect after the issue of fraud is raised, actually litigated, and the debtor participated in all aspects of the proceedings. In re Bursack, 65 F.3d 51 (6th Cir. 1995). In re Bath (Monarch Capital Corp. v. Thomas J. Bath d/b/a Infinia Builders, L.L.C.), 442 B.R. 377 (Bankr. E.D. Pa. 2010), is a Chapter 7 case in which Judge Fox made a determina-tion of nondischargeability because of fraud. Monarch advanced the sum of $300,000.00 to Bath based on written and verbal representations that the money would be secured by equipment. Instead, the money was used for “up front development costs” and the equipment was never purchased. Plaintiff proved that the money was obtained by false pretenses and false representation, along with reliance, and Defendant’s intent to deceive Plaintiff.

Monarch was a strong case on the facts and the law. Plaintiff Monarch had deposition testimony, invoices, and a written agree-ment as evidence. There was testimony that Mr. Bath used all of Monarch’s funds to pay the costs of engineering, architectural drawings, site analysis, necessary permits and other start-up devel-opment costs for the construction of a Howell, New Jersey restau-rant that was never built, rather than for restaurant equipment which was never purchased. The equipment lessor creditor proved its case for “false representation” and “false pretenses.” See, e.g. Field v. Mans, 516 U.S. 59, 116 S. Ct. 437 (1995). Under New Jersey law, Judge Fox found that the tort of conversion and tor-tious interference with contractual relations had been proved. Mr. Bath admitted that he didn’t normally order equipment for the restaurant until it was fully constructed or at least 70% complet-ed. Mr. Bath obtained Monarch’s monies under false pretenses, upon which it justifiably relied, to its detriment and monetary loss.

Nondischargeability of debt under Section 523(a)(2)(A) under the latter statute and pursuant to New Jersey law was success-fully established. Monarch made out its case in line with the ele-ments set forth in the case of In re Sabban (Ghomeshi v. Sabban), 600 F. 3d 1219 (9th Cir. 2010). Therein, the court requires a creditor to prove each of five elements and the burden of proof is the “preponderance of evidence” standard:

(1) that the debtor made false representations;

(2) that at the time he knew they were false;


A creditor’s remedy for overcoming dischargeability of debt

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(3) that he made them with the intention and purpose of deceiving the creditor;

(4) that the creditor justifiably relied on such representa-tions; and

(5) that the creditor sustained alleged loss and damage as a proximate result of such representations.

Fortunately for the creditor, intent to deceive is a question of fact which may be inferred from surrounding circumstances. In re Kennedy, 108 F.3d 1015, 1018 (9th Cir. 1997). Generally, according to the Court in Sabban, dishonest debtors are not favored over the victims of fraud in the statutory scheme. A fresh start for perpetrators of fraud is not to be encouraged.

logisticsWhere a creditor seeks to establish nondischargeability of debt steeped in fraud, he must file an adversary proceeding within the debtor’s bankruptcy case. FRBP 7001(6); 11 USC 523. An adversary action is essentially a civil suit in Bankruptcy Court. Procedure therein is controlled by the Federal Rules of Bankruptcy Procedure and the Federal Rules of Civil Procedure, where appli-cable. Exclusive jurisdiction for a determination of nondischarge-abilty of this type of debt rests in the Federal Bankruptcy Court, although there may be issues of collateral estoppel stemming from earlier litigation of fraud in a state court. In re Eber, 687 F.3d 1123 (9th Cir. 2012).

The initiation of an adversary proceeding begins with the filing of a complaint. The complaint must be filed within sixty (60) days after the first date set forth for the meeting of the creditors, pursu-ant to FRBP 4007. This deadline remains the same regardless of whether the actual meeting is held on that day or not. Creditors must pay attention to the filing deadlines for an adversary pro-ceeding. Creditors intending to initiate an adversary proceeding to establish the nondischargeability of a debt pursuant to 523(a)(2)(A) should familiarize themselves with the tools of discovery and the rules for motions for summary judgment, as set forth in the Federal Rules of Civil Procedure.

factors creditors should consider Before filing an objection to dischargeability

(1) Likelihood of an individual debtor’s ability to pay the nondischargeable debt.

(2) Costs of litigation versus benefit: Probability of a suc-cessful outcome, financial recovery surpassing the attorneys’ fees, investigation expenses, possibility of losing and paying one’s own attorney’s fees along with the debtor’s.

(3) Creditor filing an objection to dischargeability must still file a proof of claim with the Bankruptcy Court along with the other creditors, keep track of important dates, attorney’s fees to follow the course of the claim in the main bankruptcy proceeding. •

ABoUt tHE AUtHor

tony lamm is Managing Partner of Lamm Rubenstone LLC and has more than 25 years of experience in Secured Lending including, Equipment Leasing and Asset-based Finance, Loan Workouts, Bankruptcy and Litigation. he can be reached at [email protected].

http://www.padcofinancial.com

http://www.finpac.com



Every few seconds someone, somewhere, sets the goal to lose weight, to get in better shape, to go to the gym more. This goal

comes for a variety of reasons: to look good, to feel good, fit into clothes bet-ter, to be healthier. To reach their fitness goals people purchase flashy new in-home workout videos, bulky home fitness equip-ment, or join a gym and meet with a train-er. We all hope for the perfect outcome, but in the end three out of four individu-als will fail to reach their goals, having spent time, money, and effort to return to business as usual without the desired out-come. The reason the outcome is the same year after year is that people fail to ensure every dimension of success is incorporated into their planning. The individuals that experienced the highest success rate joined a gym and met with a trainer, who provid-ed detailed information on each workout to help inform the individual. Simply put the dimensions of success are:

• What do you want to do? • Do it. • Do it better!

This same story resonates within the asset portfolios of the commercial lend-ing industry. Every year managers, vice presidents, senior vice presidents, and

officers seek to improve the wellness of each portfolio because it reduces risk, maximizes returns, and helps ensure the organizations longevity. In doing so, firms purchase flashy new in-house soft-ware systems, add an in-house inspection department, or contract a third party to provide inspection assistance. The results are strikingly similar, loan default rates increase, resources become stretched thin, and employee morale is decreased. Of the three dimensions, the first two are simple, knowing what you do and doing it, and in booming economic times they work well. During periods of recession and slower economic growth they more often than not fail to provide the results an organiza-tion desires. Just as with the choice to go to the gym and meet with a trainer, many lending institutions are leveraging third parties to provide expertise, inspection reports, and photographs to add dimen-sion to their existing data. It is the third dimension of success that many firms fail to incorporate, limiting their growth potential during all economic climates.

do it better!Buying swanky new software with all the bells and whistles you could ever dream

up is often viewed as the most cost effec-tive way to improve performance and go after new business. It can generate X, Y, and Z reports with just one click. Reduce processing time by X minutes and handle y% more originations per quarter. Like buying the in-home workout videos, the convenience of having this new source of information is great. The problems quickly follow, with in-home workouts it is easy to get distracted, grab a glass of water, a snack, or rotate the laundry, all while our goal sits on pause or the video runs until it is complete. In the office it is easy to get distracted by all of the features of the software that simple tasks become long and convoluted, delays in data pro-cessing develop, costing money and risk-ing losing time sensitive clients. In the end, the software only provides a two dimen-sional view of your portfolio, showing what you have agreed to do, and how you have agreed to do it.

Some organizations choose to create an in-house inspection team to add dimen-sion to their portfolios. More often than not, lending institutions leverage existing business development officers to com-plete the inspections. In recession and

Whether the goal is to improve the hygiene and health of an existing portfolio, expand a portfolio, workout a troublesome portfolio, or purchase a new portfolio, an inspection company has the resources and expertise to help achieve that goal.

BY MicHAEl o’coNNor

Being informed… adding the 3rd dimension of success to your Portfolio

slow growth periods this works well, but in periods of moderate to high economic growth the business development officers quickly become overwhelmed with loan originations, inspections, data entry, lead generations, follow-up calls, delinquent accounts, reporting, sales meetings, pro-jections, and providing excellent customer service. Today, with employee headcounts down and tightening government regula-tions, organizations are finding themselves resource strapped and it is hindering their growth potential. Just like with the bulky home equipment, there is a plateau point where a desire to target additional muscle groups develops, but that need cannot be satisfied without the addition of a new machine. Correspondingly, a point comes where there is too much work for a busi-ness development officer to complete inspections, develop new business, and maintain existing relationships, but not enough work to justify creating a sepa-rate inspector position. In the end, an in-house inspection department adds a layer of complexity to an organization, placing stress on your business development cen-ters, taxing finite resources, and adding expenses associated with travel and sup-port equipment.

A growing number of lending institutions are contracting with third part inspection firms to add the third dimension of success to their portfolios, and provide an unbi-ased objective opinion about the asset or property being inspected. To keep it sim-ple, a relationship with an inspection firm is a lot like meeting with a personal trainer at the gym. They have the expertise from many years of experience, an education in the same arena, and will provide informa-tion in ways that are adaptable and easy to understand. This is why it is critical to develop a personal relationship with a personal trainer, or inspection company in this situation, so they can understand your needs, develop a plan, and help achieve the desired outcome. Starting, the most difficult action, entrusting customers to a third party is a frightening thought, but it should be affirmed to the bank and the client that due-diligence and proactive risk management limit exposure and loss-es due to fraud. With regular inspections, hard data is brought to life with support-ing photographs and supplemental infor-mation about the condition of the asset.

In looking to improve the health and hygiene of each portfolio the biggest thing to remember is to incorporate every dimensional aspect to ensure risk is prop-erly mitigated. There are many great soft-ware companies, mapping solutions, and image providers, but they cannot replace laying hands on an asset and the snapshot

that an inspection report provides. In-house inspection departments work, but they func-tion as a cost center versus a revenue generator, and expenses quickly add up as the loan portfolio grows. Contracting with a third party inspection firm leverages the firm’s exper-tise, minimizes cost exposure, reduces strain on resources, and increases the likelihood of customers returning in the case of delinquent accounts. When put into perspective the choice is simple, in planning for the long-term developing a relationship with a third party inspection company allows firms to achieve the third dimension of success in their asset portfolios.

At the end of the day knowing what you do, and how you do it is a priceless tool. Doing it better is the proactive effort that places wheels on your operations, delivering a firm’s services to the customers. In increasingly competitive markets everyone is able to navigate the first and second dimensions of success, but not everyone has the tools or resources to do it better. Take this time to establish a relationship with a third party inspection company, exchange ideas, and develop a plan that helps get your portfolio into shape. Save the in-home videos and fitness equipment for those who are not quite ready to take their portfolio to the next level. Whether the goal is to improve the hygiene and health of an existing portfolio, expand a portfolio, workout a troublesome portfolio, or purchase a new portfolio, an inspection company has the resources and expertise to help achieve that goal. In times of economic uncertainty, they will help you add certainty through proactive risk management and annual due-diligence. You can always do it better with the 3rd dimension of success in your asset portfolio! •


ABoUt tHE AUtHor

michael o’connor is a Marketing Associate at Collateral Specialists Inc., a nationwide firm that provides high quality site inspection services to the commercial lending community. CSI’s all employee field force specialize in prefunding, annual due diligence, and delinquent account site and equipment inspections. Michael can be reached at [email protected] or (415) 763-4227.

http://www.pactrusteqfin.com



Have you heard the story about the guy who goes out to his chicken coop one morning and finds a really cool shiny

egg … an egg made of gold. He goes back the next day and there is yet another. Morning after morning he gathers one golden egg after another and the guy gets rich. The richer he became, the greedier he got and then one morning, one egg was not enough. In his haste to get another egg, he butchered the goose only to find it empty. There are several messages we can receive from this Aesop’s fable. One being short term profits are not synonymous with long-term prosperity.

The third party originator (TPO) or bro-ker is the sales engine that has long been a part of the financial products delivery system. The broker’s ability to continually maintain and acquire numerous funding partnerships is the vital service and prod-uct provided to both the manufacturer/vendor and funder(?). David Schaefer, CLP and President of Orion First Financial, LLC was recently quoted in an Equipment Leasing & Finance Foundation Report, “There is a tremendous supply of capital at low rates for the very best credit risks. In addition, there is availability for the less than stellar credits at reasonable rates. Demand is moderate at best due to

low job creation and we are hopeful this will improve.” Dave makes a great point and when companies do go to their banks for the financing they are still being told no. The economy will improve and this is great news for the third party originator and broker. It is an ideal time for a TPO to solidify the existing relationships or even enter the equipment financing sector. But once the transaction books it is not over. A commission may be paid upfront but it is earned over the life of the contract by maintaining your relationships through ongoing communications between the les-see and the funding source.

measure twice, cut onceBob Fisher, CLP, of Ascentium Capital, comments in his recent NEFA Article, “Credit tips for your new employees or a review for yourself”, on the lack of accu-rate and detailed information in credit submission and how it may likely be the result of the need for speed before qual-ity. Bob is right. The TPO or broker has low odds of persuading a funding source to overturn a decline. The more accurate the details are upfront the smoother the entire process will be for everyone and the decisions will be more likely an approval. An outline of the facts is a start but a well written write up is worth the extra effort .

Bullet points work well in place of a short essay.

nip it in the budSome banks and funding sources will offer a choice on payment due date and based on that selection an interim rent charge may come into play. Taking a moment to understand the payment due date options offered by the funding source and whether or not they may have interim rent fees is a great opportunity to be involved upfront and head off a potential rough start on a new contract. TPOs are in a position to try and match the timing of the acceptance of the equipment with commencement of the contract with the customers preferred pay-ment due date. Sometimes the two items just don’t line up but it can still help to let the customer knows what to expect. I also try to let my cutomers know in advance if there is an option for monthly state-ments or if ACH payments are required. When ACH is required I include this in the approval letter.

actions speak louder than words. I recently booked a new transaction for a repeat customer. When scheduling the site inspection I went ahead and asked the

Being an equipment leasing and financing broker is not a get rich quick scheme. It is a day to day process with plenty of behind the scenes work. Feeding and tending your golden goose will feed you and your business for a very long time.

BY tHErEsA kABot, clP, BPB

the aphorisms of good customer service

BrokEr line

inspector to view some pieces of equipment that were still under contract with my prior funding sources. It can be actions like this that let your banks and funding source know that you are not of the fund and run mentality but in for the long haul.

Spring rain, fall gold. After the transaction books, consider send-ing a thank you letter summarizing the new contract and encour-aging the client to call with inquiries about payment due dates, equipment upgrades on additional financing needs. This means you will be encouraging some maintenance calls that might include questions like “how many payments do I have left” or “what is this charge for personal property tax?”. Processing this aspect of your business does not have an immediate paycheck but it is a touch point – an opportunity to stay in contact and be “top of mind” when the client needs more financing.

the stronger the breeze the stronger the trees Sometimes touch points aren’t the fun ones. Unfortunately reach-ing out isn’t always in the form of “thanks for your business and what can I do to earn more.” Once the transaction funds, the client becomes a mutual customer of both your funding source and you. So when the customer is not making payments on time it could be time to get involved. As the originator of the con-tract who helped set everything up to go smoothly, TPO’s build a strong positive rapport with clients on the front end which is why when there are bumps in the road regarding payment perfor-mance the broker can be well positioned to step in and help get things back on track. Your funding source will thank you. Being proactive and communicative with your funding sources about your portfolio performance can also assist with targeting good paying customers for additional business.

have a ripple effectThis is a business built on relationships and those relationships fuel success. It can be easy to hide behind the screen but taking the time to really get to know your clients (this means funding sources, vendors and end-users) can be achieved by all the meth-ods of communication that this technological age offers, some often less convenient than others, including office visits or phone calls. Working throughout the transaction with sincerity and integrity will encourage loyalty and repeat business.

A few third party originators and brokers might be tempted by the lure of high commissions and easy money. But being an equipment leasing and financing broker is not a get rich quick scheme. It is a day to day process with plenty of behind the scenes work. Feeding and tending your golden goose will feed you and your business for a very long time. This means more approvals from your funding sources and a relationship focused on mutual profitability and long term prosperity. •


ABoUt tHE AUtHor

theresa kabot, clP is Manager, Kabot Commercial Leasing LLC. Theresa began her career in commercial equipment financing at Pitney Bowes subsidiary, Colonial Pacific Leasing. She established Kabot Commercial Leasing LLC in 1996 in Seattle, Washington. A graduate of Colorado State University, Theresa is an active member of the National Equipment Finance Association, NEFA and the National Association of

Equipment Lessors and Brokers, NAELB. She has served on the UAEL Board of Directors, volunteered on numerous committees with NEFA, UAEL and NAELB, is Past President of the CLP Foundation and has been an instructor for the Institute for Leasing Professionals.

http://www.amaweb.com

http://www.NEFAssociation.org


tidbitsNational Equipment Finance Association


advErtisEr indEx

Allegiant Partners ............................................................................13Asset Management Associates ..................................................19Boston Financial & Equity ............................................................. 5Dakota Financial ................................................................................ 5ECS Financial Services ..................................................................13Equipment Engine ............................................................................. 6Financial Pacific Leasing .............................................................15Great American Insurance Group ............................................. 9

LEAN ........................................................................................................ 8Lease Team .........................................................................Back PageLeasing Solutions .............................................................................14Merchant Cash & Capital .............................................................14NEFA .............................................................................................. 12, 19PacTrust Bank CEF ..........................................................................17Padco Financial ................................................................................15

2013 funding symPosium & annual BusinEss mEEting

octoBEr 10-12NAShvILLE MARRIOTT AT vANDERBILT UNIvERSITY

America’s Music City, Nashville, Tennessee, is easy to get to and a lively and fun place to spend time. It is, of course, the home of country music but there’s a lot more to Nashville than just music. Nashville and the surrounding area are full of history and a wide variety of popu-lar tourist sites are within easy reach.

NEFA’s 2013 Funding Symposium will be at the newly renovated Nashville Marriott at Vanderbilt University, in Nashville’s trendy ‘West End’. Just minutes from the famous honky-tonks, the west end is full of restaurants, bars, and shopping. Within a half mile of the hotel are many dozens of restaurants, ranging from a Ruth’s Chris Steakhouse to a Wendy’s and everything

in between. And there’s shopping; there’s lots and lots of shopping.

Country music fans will be overwhelmed with the choices. NEFA’s conference hotel offers complimentary shuttle ser-vice to and from the famous honk-tonk bar area, home to Wild Horse Saloon, Tootsie’s Orchid Lounge, Legends Corner, The Stage on Broadway, Robert’s Western World and lots, lots more. So if Symposium attendees go down there and have a little too much …ah …we’ll say …music …they can still make it back to the hotel eventually.

Our conference hotel is directly across the street from Centennial Park, home of the Parthenon, which was built in

1897 as part of the Tennessee Centennial Exposition. The hotel also sits next to Vanderbilt University’s famous Dudley Field Stadium.

That’s the fun parts of Nashville and the 2013 NEFA Funding Symposium and Annual Business Meeting. Watch the NEFA website for updates on the con-ference content. Under the leadership of Conference Chairperson, Stephanie Hall, of Bryn Mawr Funding, her committee is planning the most content rich conference in years. That’s to make sure you can pay for all that fun you’ll have!

Mark your calendars and watch for online registration opening up and take advantage of early registration discounts. This is not a big hotel so you will want to book early. It will sell out. We’ve sold out our last three hotel room blocks early and this is, after, all Nashville, Tennessee, America’s Music City!

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Allegiant Partners Incorporated • Arvest Equipment FinanceBank of the West • Bryn Mawr Funding

Channel Partners, LLC • Dakota Financial, LLCECS Financial Services, Inc. • Financial Pacific Leasing, LLC

Great American InsuranceGreatAmerica Portfolio Services Group, LLC • Leasepath

LeaseTeam, Inc. • Maxim Commercial Capital, LLCPacTrust Bank Equipment Finance • Pawnee Leasing Corp

Peretore & Peretore, P.C. • RLC Funding • RTR Services, Inc.Stearns Bank • TAB Bank

to lEArN ABoUt tHE NEFA PArtNEr ProgrAM, PlEAsE coNtAct kiM kiNg, NEFA, At (847) 380-5053.

MemberSpotlight:diANE williAMs

As a newly appointed NEFA Board of Directors member, Diane Williams brings a fresh entrepreneurial spirit and success to the table. Diane plays an active role in her communication with NEFA members and non-members by encouraging them to get involved.

Diane Williams has served as Vice President and Controller of Bankers Leasing Company for the past 16 years. She is a key leader for the orga-nization with a wide range of roles and

diverse responsibilities. She is directly responsible for all aspects of the accounting department as well as company finance, human resources, business insurance and IT. Additionally, Diane has oversight responsibility for operations and office management.

Since joining BLC, their portfolio has more than doubled in size while equity has increased by 30%. As the industry and account-ing rules change, Diane thrives on developing new solutions in order to provide excellent service to BLC’s vendors, customers and employees.

Bankers Leasing Company, a privately owned independent leas-ing company in Des Moines, Iowa, has been providing innovative financing to clients for over 65 years. BLC has a proven track record of approval and funding, allowing their vendor partners to close deals and achieve sales objectives. BLC values long term employees and follows a conservative approach to building equi-ty. Bankers Leasing Company is member of both NEFA and the Equipment Leasing and Finance Association (ELFA).

Prior to joining Bankers Leasing Company, Diane was in the accounting department at R&R Investors in West Des Moines for six years. She was responsible for audit and accounting over-sight and partnership budget services.

Diane’s career began in Des Moines at McGladrey and Pullen where she served as a staff and in-charge auditor for four years. She holds a Bachelor of Science degree in accounting from Northwest Missouri State University and is a Certified Public Accountant.

thank you nEfa Partners!

wElcoME NEFA NEw MEMBEr!

tiP caPitalJim Merrilees, CLP

BaltimorE craB fEastPhillips Seafood ResturantBaltimore, MDJune 6, 2013

institutE for lEasing ProfEssionalsOrion First FinancialGig harbor, WAJune 17-19, 2013

atlanta nEtworking lunchEonAnsley Golf ClubAtlanta, GAJuly 18, 2013

chicago whitE sox BasEBall gamEU.S. Cellular FieldChicago, ILJuly 22, 2013

socal anahEim angEls gamEAngels StadiumAnaheim, CAAugust 1, 2013

funding symPosiumNashville Marriott at vanderbilt UniversityNashville, TNOctober 10-12, 2013

atlanta nEtworking lunchEonAnsley Golf ClubAtlanta, GAOctober 17, 2013

calEndar of EvEnts

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What is the value of today’s industry asso-ciation membership? Conferences held at luxurious hotels with fancy cocktail par-ties? Educational content from industry sages? Networking with friends, col-leagues and prospects? I suggest to you that the association membership itself is a huge asset and can be mined for its valu-able resources. Let’s explore what I mean.

discover your mentorYou have likely attended several confer-ences in your career. You’ve probably noticed that there are a few members whom are admired, respected and receive a lot of attention. They are the thought-leaders, innovators, owners/senior managers and success stories. These are the individuals you want to hang out with, emulate and learn from. I refer to the influential people in my career as “Mentors”, which is likely an old fashioned term, but the concept still stands. If you surround yourself only with people who are at your current level of experience and knowledge, you can’t truly expect to be challenged and to grow. Seek out those who deal with the problems, challenges and issues that you wish you had and pay attention how they address and deal with these issues. EMULATE the traits, behaviors and disciplines that these elite and successful individuals display. Shed bad habits and start to grow yourself professionally!

choose your lunch table carefullyIn a concept similar to the above, to grow you need to begin to associate with those who are operating at the level at which you aspire to be. If you sit with your peers, friends and co-employees, you are limiting your access to other types of dis-cussions that expose you to interesting topics and potentially beneficial relation-ships. Choose the “lunch table” (or recep-tion conversation, or seat on the bus, or morning coffee, or cocktail table) that is occupied by those who are carrying on the conversations that you can learn from; and your new lunch companions become resources for future support and ideas. LISTEN to the discussion, ASK thought-ful questions and CREATE the beginnings of fruitful relationships.

Pre-conference strategy for maximizing investment and timeWhat do you plan to take away from a conference? Who do you want to meet while you’re there? Who do you want to spend a few minutes with to discuss your existing relationship or perhaps to cre-ate a new one? Do you “wing it” when you arrive or do you have a strategic and planned approach prior to stepping on the

plane? When Mining the Membership, preview the attendee roster and make a list of lenders, lessors and service provid-ers that could be potential mentors, busi-ness partners, employees, customers, etc. Reach out to these folks LONG BEFORE the conference and set an appointment for a coffee, breakfast or lunch, or a private meeting. Get on their schedule early, be organized and maximize your time. Have a list of discussion points that you’d like to cover and make notes of the conver-sation. If you don’t know what you’re going to accomplish while attending a conference, those that you’re targeting to meet or what new idea you’re hoping to take home, you cannot know what you will get from it and your investment and time are minimized. PROFIT from PREPARATION!

Employee developmentDo you take your employees with you when you attend conferences? I under-stand that the cost of additional atten-dance fees, flights and hotel rooms are all considerable, but I also might argue that conference attendance could be the cheap-est and most varied experience you could ever provide for them. Select your STAR employees—the ones that have shown ini-tiative to learn the industry and that you could groom into key positions within your company—and invite them along to

This article is geared especially to those readers who seek to GROW their firms (and/or themselves) to a higher level: this may be by way of becoming a lessor and accepting risk, increasing volume, growing in sophistication or addressing new markets. If you are satisfied with where your company is presently positioned, feel free to turn the page!

BY MikE cooN

the value of today’s association membership: mining the membership for its valuable assets


MEMBEr line

harley davidson days!crEdit ANd FUNdiNg MANAgEr, klc FiNANciAl

Shannon Smith

I am the Credit and Funding Manager for KLC Financial since January, 2008. My main roles at KLC are to work with the sales team and their clients to structure transactions based on risk and repayment. I work on the bank end with our bank and investing partners to invest

in the appropriate risk. KLC Financial, Inc. was established in 1987 as a premier equipment leasing company. Our executive staff and sales team have collectively more than 100 years of experience in leasing and finance. KLC provides equipment financing to businesses in all industries and from all credit grades, while establishing solid, long term relationships with our customers and our funding sources. KLC is as an equipment lessor for the 5 State Upper Midwest (MN, WI, IA, SD & ND).

In my free time I enjoy spending time with my family, outdoors, run-ning, sports with my kids, and Harley riding. I purchased my first Harley Davidson out of college and continue to ride with my family and friends on short trips. Prior to having children my wife and I would enjoy taking adventures on the bike for weekend get a ways across the Midwest. Some of our most interesting bike trips were the trips out for the annual bike rally known as Sturgis Bike Rally in Sturgis, SD. With 2 boys and our 3rd on the way I don’t get many opportunities to take many trips aside from my daily commute to the office. Although my wife doesn’t ride with me anymore, I gained my oldest boy Aiden who is my riding partner now. He enjoys short trips to the ice cream shops mostly. Getting out on a nice sum-mer day and cruising has always been my relaxation and serenity. •

the conferences. Connect these individuals with members that could influence, train and inspire them. Make introductions to your customers, funding partners and service providers. Help nur-ture relationships that will pay you back in large dividends in the future.

turn contacts into relationshipsToday’s social media sources—LinkedIn and Facebook, for example—are great for collecting “contacts”, but there is nothing like a firm hand-shake, a direct look in the eye, or sharing a laugh over a drink or a meal that creates a true, lasting rela-tionship. Use the concepts and strategies discussed in this article (Mine the Membership!) to create a solid stable of influencers, mentors and advisors that you can reach out to at anytime. Nurture these relationships by regular contact, organized confer-ence meetings and by sharing referrals and relevant information (Idea: when I see a press release for one of my contacts or relationships, I often copy/paste the headline to the subject line of an email and send them a nice note of congratulations or recognition. This takes all of 15 seconds and I ALWAYS receive a thank you in return).

Pay it forwardI guess I realized I was getting older and had been in this business a long time when industry folks started coming to me for advice, ideas and to “pick my brain”. Although I had those that I have learned from and have respected—Gerry Egan, Dwight Galloway and Paul Menzel, come immedi-ately to mind —I realized it was my time to share my knowledge and experiences. Give back to the industry that has supported you, your family and your employees by being a mentor yourself…it’s very rewarding!

conclusionSo, what is the value of association membership? Mine the Membership and find out for yourself! The key is that you have to take the initiative for your growth. There are no formal invitations to join the “club”, so seek out those that are a level at which you aspire to be and make fast friendships that last a lifetime. •

ABoUt tHE AUtHor

mike coon began his financial services career over 20 years ago, beginning at First Michigan Bank (FMB). Currently, Mike is the vice President of the Equipment Leasing Division at TAB Bank, an $800MM and growing Industrial Loan Bank chartered in the state of Utah. he has worked in most

areas of the industry including credit, collections, marketing and funding. Mike is very committed to the equipment finance industry, actively participating in the leasing industry associations. As a dedicated industry professional, he is often invited to speak or write on industry issues. Mike, along with his wife, Shea and daughter, Marianne, reside in Rockford, MI.

http://www.leaseteam.com

national equipment finance association funding issue · 2018. 4. 4. · board of directors national...

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