2011 Monitor 100
Manufacturing has played a pivotal role supporting economic growth in the U.S. over the past year and a half, and the stage is set for this to continue. Manufacturing’s outsized contribution to growth, however, has not come from some Herculean strength in the sector. Ultimately, according to TD Bank economists James Marple and Alistair Bentley, until the housing and service sectors become more engaged in the recovery, manufacturing will reign supreme in underpinning it.
The way CapitalSource’s Laird Boulden sees it, the economic recovery story has more to do with psychology than statistical analysis. In equipment finance, while things are improving, the mood is far from celebratory. Unprecedented bank liquidity has spawned new market entrants and intense competition, resulting in thinner margins, increasingly more aggressive terms and higher asset prices. But, he, like many in the industry, are more than willing to play the hand that they have been dealt.
Western Alliance Equipment Finance has entered the Monitor 100 at #73 in style — boasting 101% asset growth and 55% volume growth in 2010. On a steady role since 2008 when Michael Brown, president and CEO, joined the company to lead the division, Western Alliance EF is poised to continue meeting its growth goals by sticking to the basics — offering a quality product with a personal touch.
How do you transform a non-descript small-ticket leasing company whose business is sourced primarily through the broker channel into a burgeoning regional operation in 14 states focused on the middle market in two years’ time? We asked industry veteran Edward Perkowski, who heads First Niagara Leasing, and we found out that like its famous namesake, First Niagara Leasing is rapidly becoming a force to be reckoned with.
In April 2011, AIG announced that its Commercial Equipment Finance unit was changing its name and market strategy, and AIG Commercial Asset Finance was born. Well-versed in turning change into success, industry notables William G. Farrell, Jr., president and CEO, and Dave B. Fate, EVP and chief operating officer, are leading the charge, as the unit has added real estate financing, divested AIG Rail Services and is now focusing on investment grade originations.
In business for a little more than four years, Arvest Equipment Finance has seen steady growth, even through a brutal economic downturn. With 2010 assets up $10.5 million, or 16.1% from 2009, the company has entered the Monitor 100 rankings at #96. Behind this success is Kyle W. Gilliam, president and CEO, and his team based in Fort Smith, AR.
Making Pawnee Leasing Corporation unique in the equipment leasing industry is its exclusive use of brokers for all originations. Even in an era in which others have abandoned the use of brokers, Pawnee unwaveringly adheres to its business model using the broker channel and prides itself in its broker support and training.
As the economy improves, equipment manufacturers and resellers are gearing up to meet pent-up demand. Third-party lenders providing captive services offer a viable option for those sellers that want to improve control over customer relationships by offering a broad range of financing options and customer support — while avoiding the up front investment of building their own captive program. We spoke with Ron Arrington, global president of CIT Vendor Finance, to discuss the challenges of a changing economy, recent developments within the CIT vendor portfolio and what’s going on in the third-party captive market.
The filing of an involuntary bankruptcy petition by a creditor can be a very useful tool for a creditor to collect money from its recalcitrant debtor. But given some new cases, maybe a creditor should give the filing of an involuntary bankruptcy proceeding a second thought.
The key point of this edition of Dispatches From the Trenches is to provide a friendly reminder that attachment is a cornerstone to a perfected security interest and that it is worthwhile to consider the requisite steps to attachment and their timing. Ken Weinberg reminds us that equipment lease forms need to be carefully worded so that the grant of the security interest occurs prior to acceptance in the event goods are not accepted before or simultaneously with delivery.