Funding a Leasing Company in 2005 — To Be or Not To Be a Lessor?
By Jeffry D. Elliott, Vice President, Huntington Bank Equipment Finance
The most effective leasing companies make a strong distinction in their business model between performing as a principal and acting as a broker. The current funding atmosphere has led some managers to question their business model, thus deciding to be or not to be a lessor or a broker. The following article attempts to point out the differences, advantages, disadvantages and funding realities of each model. (Ref # FNF108)

Getting the Numbers Right With Asset-Based Accounting
By David Holmgren, Senior Financial Analyst, Ivory Consulting Corporation
Especially in situations where individual assets in multi-asset transactions are treated separately for terminations or other purposes, asset-based accounting can be a useful approach. On the other hand, it adds complexity and may introduce chances for judgment rather than objective measurement to be used to allocate lease elements. Lessors who are able to implement guidelines or methodologies to make the allocation consistent and rational will benefit most from this approach. (Ref # ACC027)

Valuing Like-Kind Exchanges: Is It News Too Good To Be True?
By Bill Bosco, Principal, Leasing 101 and Chairman, ELA Accounting Committee
The like-kind exchange benefit is being used by many of the vehicle leasing companies such as auto manufacturers, auto lessors and auto rental companies. Increasingly, general equipment lessors are using the benefit. Those lessors will be formidable competitors if they use the LKE pricing advantages available to them. (Ref # ACC028)

Now More Than Ever... As State Revenue Departments
Grow Hungrier, Tax Compliance Strategies Gain Importance
By Shari L. Lipski, Principal, ECS Financial Services, Inc.
These days, the risks of overlooking tax liabilities have never been higher, and the benefits are quite compelling for companies that can prove compliance. Furthermore, with states across the nation facing serious budget deficits, state revenue departments are becoming more aggressive in seeking out companies that are neglecting their tax obligations. (Ref # TAX055)

Seal the Deal: Get That Corporate Resolution!
By Thomas E. McCurnin, Partner, Barton, Klugman & Oetting
While some transaction lawyers and lease administrators consider a corporate resolution an optional document, recent case law in three states compel the contract drafter and contract administrator to obtain this essential piece of paper for bothstandard corporations, limited liability companies and limited liability partnerships. Indeed, the lessor’s lease, security interest and accompanying guaranties may become unenforceable if this crucial one page document is not obtained. (Ref # LGL1041)

From ILC to NC4 — How the Future Began for a Bank-Affiliated Leasing Company
By Vince Rinaldi, President & CEO, National City Commercial Capital Corporation
National City Commercial Capital Corporation started as a small, customer-centric leasing company. Now, as a subsidiary of one of the top 10 banks in the country, NC4 is maintaining its small-company agility while providing large-company benefits to its customers. It is now one of the biggest bank-owned leasing companies in the country. (Ref # CPR103)

Traditional Values: The Future of a Changing Industry
By Cari Cuomo, Communications Coordinator, GMAC Commercial Finance
The syndication market is strong — to the tune of $440 billion in the first two quarters of last year in the U.S. alone. But it is an industry undergoing change. Specifically, new sources of liquidity, which represent a trading philosophy rather than a buy and hold mentality, have found their way into the senior secured and leasing secondary markets. These players may be in for some unpleasant surprises as the credit cycle matures. (Ref # SYN010)

Fitch Ratings: 2004 Review & 2005 Outlook
for U.S. Commercial Finance & Leasing Companies (Part I)
By Philip S. Walker, Jr, Senior Director, Financial Institutions Group, Fitch Ratings
For 2005, Fitch Ratings’ overall outlook for the commercial finance and leasing company is stable. The most notable change has been the virtual disappearance of the diversified commercial finance company business model with only CIT and GE Capital remaining in the industry. (Ref # CRD070)