2004 April Issue

APRIL 2004
April Showers…
A Brighter Outlook for Funding Sources

FEATURES

Staying Ahead of the Wave: A Funding Source's View of the World
By Scott Radtke
As funding sources, we're watching the economy change and leasing rules evolve. Although our world is in flux, leasing's core products will continue to provide a viable financing alternative. In the following, Scott Radtke of RBS Lombard discusses how, in a tough economy, the asset finance industry has an opportunity to shine and meet the inevitable wave of funding opportunities brought on by the recent pent-up demand for new equipment. (Ref # FNF105)

Ascending the Slippery Road of Economic Expansion
By Peter Otto & Larry Smircich
As allocators of credit are now talking about pressure from management to increase earnings and ROA and grow assets, directives are coming down from on high to get money out the door, even if that means taking on new customers, entering new markets and loosening credit standards. (Ref # CRD062)

Three Traits of a Successful Funder
By Gerry Egan
What are the real, truly meaningful traits that distinguish a successful funding source from its competition? The following article examines three key strategic traits that might not readily come to mind - traits that require an intense and honest evaluation of a company's unique abilities, relationships and resources. (Ref # FNF104)

U.S. Leveraged Leasing… A Case of Government "Abuse"
By Dean Thomas Riskas
Recently, both the Senate and the Treasury have unfairly and inaccurately commingled legitimate corporate lease transactions with dubious individual tax shelters. Ironically, these critics fail to acknowledge that while leasing creates a tax deferral, this deferral doesn't equate to tax avoidance. (Ref # TAX053)

Safe Driving Tips Can Expand Your Core Business
By Tyler V. Grady
Gaining a competitive edge in today's equipment leasing market can be as simple as adopting the ABC's of safe driving - awareness of the big picture, being visible and creating your own space. Selling accounts receivable financing to your clients and prospects may be the right vehicle to gain that edge. (Ref # ABL267)

2004 Industry Future Council Report, Equipment Leasing & Finance Foundation
The Equipment Leasing and Finance Foundation has released its 2004 Industry Future Council Report. The IFC, comprised of senior leasing industry executives, convened its 23rd annual conference earlier this year to discuss the current state of the industry, identify forces driving the industry, predict the future of the industry, and recommend actions the industry and individual firms must take for future success. (Ref # ASC003)

The Leasing Landscape… Spotting A Bright Ray of Optimism
By Loni L. Lowder
Talk to just about anyone in our industry and they will tell you that things are getting better. Specifically, more companies are looking to acquire equipment and there seems to be a growing availability of funding. As accommodative fiscal and monetary policies have begun to restore economic growth, the leasing landscape is a sunnier place than it was a year ago. (Ref # FNF103)

Orderly Liquidations: Higher Prices, Faster Sales
By Edward Castagna
Whether selling off end-of-lease stockpiles, returns, repossessions, or equipment recovered from bankruptcies, orderly liquidations offer several compelling advantages over public auctions. Combine orderly liquidations with the reach of the Internet, and they become powerful and convenient tools for remarketing equipment. (Ref # ABL262)

Lending to C & D Credits: "Outside of the Box" Solutions
By Brad D. Quigley
As any broker or lender is aware, the economic times U.S. businesses have been faced with recently have caused major credit issues - specifically in regard to approvals. The biggest fear of lending to the C&D market is the risk, and the key to success is to understand the psychological profile of the risk, assess it, and create a safeguard against it. (Ref # CRD063)

IEC Used Equipment Outlook: 2004 Great Expectations - Part II
By Carl Chrappa
Independent Equipment Company annually compiles and rates secondary market outlooks for selected categories of equipment which are commonly financed by leasing and asset-based lending companies. Overall, the outlook for used equipment markets in 2004 can be best described as "improving". (Ref # EQM129)

Fitch Ratings/QIV 2003: ABS Delinquency Directions
By Sara Grohl
In 2003, the fewer, yet more muscular, market players grew organically and fine-tuned their business models. As a result, the end of 2003 marked a record low in Fitch Ratings' Equipment Lease ABS Delinquency Index, as total delinquencies greater than 30 days past due fell to 1.88%, a 23% drop from the third quarter (see Figure 1). Directly related to positive performance measures and growing credit enhancement, Fitch was able to upgrade several transactions during the past five months. (Ref # CRD049)

COLUMNS

CAREER MOVES
Keeping It Simple
By Jim Pawlak
It’s time for job hunters to do some serious “spring cleaning”. Time to clean the clutter from cover letters, resumes and interviewing techniques. The approach will be “Keep It Simple”. (Ref # JBS080)

LEGAL WATCH
Jury Trial Waiver Held Unenforceable for California Businesses
By Andrew K. Alper
Since 1991, parties involved in litigation in California had some comfort knowing that when they enter into a business or commercial agreement which contains a jury trial waiver, the jury trial waiver will be enforced. (Ref # LGL1021)

DISPATCHES FROM THE TRENCHES
A Little Something About Fixtures
By Kenneth P. Weinberg, Esq.
Many people in the leasing industry are aware that large items of equipment that are integrated into a building, attached to real property with concrete or otherwise very difficult to remove may constitute “fixtures” under the various legal rules applicable to leasing and other sorts of financings. (Ref # LGL1022)