GCR Capital Equipment Leasing Blog

Traditional Bank Credit Lines are Disappearing. What to Do?

noreply@blogger.com (GCR Capital) — Wed, 04 Jun 2008 15:32:00 +0000

Aren’t you sick of weak, old “lines” that just don’t deliver anymore? Unfortunately, the “Lines” we use for our business can have similar problems these days. If you have been reading our Business to Business Blurbs, you are already aware that Bank Lines can weaken your personal credit, but did you know that there can be other serious problems that you may face with in our 2008 American Economy?

Banks are in a state of upheaval in many ways; they are closing, cutting back, and tightening up. Bank lines that are secured with real estate are being pulled (canceled) with little or no notice. It’s not a shock to call your personal banker these days and find that with no warning, he/she is not there anymore! That’s a big problem after you have built a relationship for years, and are counting on them to help your business!

The established business owner with good credit and business history, who walked into the bank and barely had to sign an application, now has to jump through hoops to get a loan. New business owners are often just Out of Luck.

There is some good news though… A GCR Capital finance solution is not tied into bank lines. Once you enter into the contract it cannot be pulled or canceled until the term of the lease, unless you make arrangements to do so. In addition, A through D credits are still being approved. And we don’t affect your personal credit! So even though we have to wait for the banks to stabilize again, you don’t have to wait to get the financing you need.

GCR Capital protects your future, while we solidify your present!

To request more information about equipment financing, GCR Capital, or rates quotes, contact us today

Ready to get the funds you need? Apply Online Now!

“How do you become a Millionaire?

noreply@blogger.com (GCR Capital) — Wed, 07 May 2008 18:35:00 +0000

Remember that old Steve Martin Stand-Up Line…. “How do you become a Millionaire? Well, first, get a million dollars!”

Actually, there are real ways to make sure that you don’t whittle down your Net Worth – even when you want or need equipment acquisitions.

Even If you are not “old school” enough to remember that Steve Martin line, you probably also have heard the “old school” philosophy that a business owner should try to pay cash for acquisitions, and to try to stay away from financing or getting in debt. Well a savvy business owner knows that the correct type of financing is good business when it come to equipment, and working with GCR Capital is one of your best options!

Cash is the first line item on your business and personal balance sheet, so when you pay cash, that line decreases and so does your Net Worth in the same increment! When you make one or even several cash purchases, you don’t realize that is showing as continuous deductions to your Net Worth!

Net Worth is crucial when anyone looks at your business! When you are looking for a line of credit or a real estate purchase with your bank, or in some industries – a potential customer who is looking at your strength before awarding you the project, you need to protect your Net Worth. Don’t nickel and dime it away, with equipment purchases (that depreciate in value). Equipment depreciates – cash doesn’t! Save cash until it makes real sense to use it.

And don’t forget, all GCR Financing is “under the radar” which means that it doesn’t affect personal credit or show as a liability on your balance sheet, once again keeping your business profile and your Net Worth strong and healthy for the times that bank or cash options really make sense!

GCR Capital protects your future, while we solidify your present!

To request more information about equipment financing, GCR Capital, or rates quotes, contact us today

Ready to get the funds you need? Apply Online Now!

Equipment Vendors: How to Increase Sales by Matching Your Customers' Goals

noreply@blogger.com (GCR Capital) — Wed, 30 Apr 2008 17:36:00 +0000

As an Equipment Vendor you not only want to make the sale but you want to develop a long term relationship with your customers. One way to help your customers is to explain to them some of the many benefits of leasing vs traditional forms of financing.

As you already know (but your customers' may not):

GCR Leasing does not affect personal credit like banking products such as Loans and Bank lines. (They add debt service to personal credit which then makes it more difficult for to acquire additional money because credit scores go down! Even clients with very good credit will experience a decline when using bank financing because now they have more debt or the potential for more debt!)

A GCR Capital Lease stays “under the radar”. It does not report on personal credit, and does not affect your client’s future borrowing power like a bank line or credit card.

It’s no secret that bank lines are drying up, even for good customers. Your client’s ability to spend with you in the future will not be affected when you use GCR!

Help your customer make smart financial decisions as well as smart equipment choices! Your customer will appreciate it when you show them that how you are helping to protect their bank relationship, so that it is still there when they need it for other things such as cash flow, real estate etc.

To request more information about equipment financing, GCR Capital, or rates quotes, contact us today

Ready to get the funds you need? Apply Online Now!

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Threats to Your Personal Credit

noreply@blogger.com (GCR Capital) — Fri, 25 Apr 2008 20:10:00 +0000

Everyone in America is concerned with keeping their credit score at it best possible number.

Remember!!

We do not affect your personal credit. Banking products such as Loans and Bank lines add debt service to your personal credit which eventually makes it more difficult for you to acquire additional money from them when you need it because your credit score goes down!

No matter how good your credit is today, a bank loan WILL affect it because you now have more debt and/or the potential for more debt!

Many of our clients who have always gone back to their bankers, are now in a panic because they don’t have their bank to fall back on!

All over the country, banks are tightening up both their lending standards as well as what they will let their underwriters loan money for. Don’t forget that your local banker may know YOU, but ultimately he cannot go against lending requirements that come from his Board of Directors or even state mandates.

Don’t try to finance your equipment at your bank. GCR Equipment Finance Products stay “under the radar”.

They do not report on your credit, and will not affect your future borrowing power.

We actually help you protect your all important bank relationship so that it is still there when you need it.

To request more information about equipment financing, GCR Capital, or rates quotes, contact us today

Ready to get the funds you need? Apply Online Now!

Judy DiVincenzo
GCR Capital
200 9th Avenue N., Ste 200
Safety Harbor, FL 34695
727-258-0093
877-735-1584
727-258-0122

Please visit our LinkedIn profile GCR Capital

Construction Equipment Leasing Firms Target Housing Market

noreply@blogger.com (GCR Capital) — Tue, 06 Dec 2005 21:37:00 +0000

OPENPRESS) December 6, 2005 -- A red-hot construction market is attracting many equipment leasing companies to capture more of the country's growing number of residential and commercial projects.

Construction is expected to grow in the billions in 2006, according to a forecast by the McGraw-Hill Construction Information Group, a market research firm in New York.

A large part of that increase will be driven by new home building. There were a record number of homes built in 2004 a substantial increase in that is projected for 2006, according to the Building Industry Association.

Construction equipment leasing companies provide leasing for many types of equipment, from backhoes and pressure washers to excavators and compressors.

"We go to where the market is building, and construction is still a real growth area for us," says Nick Myer, vice president of global strategy and marketing for Trycan leasing in Asheville, N.C."

"We believe that equipment leasing should be made easier for the small business owner(s) and for companies seeking to advance their market share. We believe that we have a program that can mean real dollars for any organization willing to try a better and faster approach to equipment financing. "

Traditional financing meant having to put down nearly 25% on equipment purchase. While this would not present a problem for the seasoned company, it might be a hardship for the new start up, or for the organization having minimal cash reserves. However, these days for those looking for construction equipment leasing there is a choice over these decisions. Leasing companies will usually finance 100 % of the equipment cost, and won't require a down payment.

In fact for a company to be considered for an equipment line-of-credit up to $10,000,000.00 – all they need do is to complete a Lease Application and return it via a toll free fax number.

"It's a need in this market," says construction firm owner Bryan Mazurkiewicz of Orchard Development in Clinton Township, who sees plenty of need for this concept. He recently needed a sweeper to complete a job, but had to subcontract the work because he couldn't lease the equipment.

These construction equipment leasing companies require no money down on equipment purchases. Can approve most transactions within the same business day and offer financing terms up to five years.

They can also offer fixed purchase options at the end of the lease term, offer skip payments to many seasonal businesses and special situation financing, or structured lease payments.

Remember!!

We do not affect your personal credit. Banking products such as Loans and Bank lines add debt service to your personal credit which eventually makes it more difficult for you to acquire additional money from them when you need it because your credit score goes down!

No matter how good your credit is today, a bank loan WILL affect it because you now have more debt and/or the potential for more debt!

Many of our clients who have always gone back to their bankers, are now in a panic because they don’t have their bank to fall back on!

All over the country, banks are tightening up both their lending standards as well as what they will let their underwriters loan money for. Don’t forget that your local banker may know YOU, but ultimately he cannot go against lending requirements that come from his Board of Directors or even state mandates.

Don’t try to finance your equipment at your bank. GCR Equipment Finance Products stay “under the radar”.

They do not report on your credit, and will not affect your future borrowing power.

We actually help you protect your all important bank relationship so that it is still there when you need it.

To request more information about equipment financing, GCR Capital, or rates quotes, contact us today

Ready to get the funds you need? Apply Online Now!

Judy DiVincenzo
GCR Capital
200 9th Avenue N., Ste 200
Safety Harbor, FL 34695
727-258-0093
877-735-1584
727-258-0122
------------------------

Please visit our myspace page GCR Capital as well as our FlickR Account GCR Capital

Key Equipment Finance Selected by UBS Leasing as Strategic Partner

noreply@blogger.com (GCR Capital) — Thu, 01 Dec 2005 14:55:00 +0000

SUPERIOR, Colo.--(BUSINESS WIRE)--Dec. 1, 2005--Key Equipment Finance, the third-largest bank-held equipment leasing company in the U.S. and an affiliate of KeyCorp (NYSE: KEY), today announced that it has been selected as a strategic partner of UBS Leasing. UBS Leasing is a subsidiary of UBS, one of the world's leading financial services companies and a market leader in Swiss private and corporate customer business.

UBS Leasing will be able to provide an expanded product and service offering to UBS bank customers in Switzerland interested in leasing technology and other business-related assets. This strategic partnership provides a competitive advantage to UBS Leasing with products such as project financing, technology refresh and off balance sheet lease financing, which can enable companies to take advantage of benefits like upgrade flexibility, optimal asset management and improved balance sheet management.

"UBS is a leading, global financial organization that is committed to meeting the needs of its customers," said Karen Larson, president and chief operating officer of Key Equipment Finance's global vendor services unit. "UBS Leasing already provides a wide range of financing for all types of assets, from motor trucks to technology equipment to ships for companies of all sizes, and we look forward to working with them to offer a more diversified product offering in response to increasing demand from their customers."

UBS Leasing noted Key Equipment Finance's comprehensive product offering, including US-GAAP and IAS/IFRS-compliant lease structures, as well as approximately 30 years' experience providing financing options to companies worldwide, as the primary reasons for selecting Key Equipment Finance as a strategic partner.

"Key Equipment Finance is regarded throughout the industry as a leading provider of equipment financing options for global companies," said Gino Giuliato, CEO at UBS Leasing. "Through this alliance, we will be able to provide an expanded range of products and services to meet the equipment leasing needs of mid- to large-sized businesses throughout Switzerland. We look forward to working with Key Equipment Finance's leasing experts to fulfill the increasing demand for flexible leasing options from our new and existing customers."

According to ELA - October Shows A Significant Upturn In Originations Starting Fourth Quarter 2005

noreply@blogger.com (GCR Capital) — Wed, 30 Nov 2005 16:51:00 +0000

ARLINGTON, Va.--(BUSINESS WIRE)--Nov. 30, 2005--The Equipment Leasing Association (ELA) today released the Monthly Leasing Index (MLI), which surveys approximately 20 major equipment leasing companies on a monthly basis. The key metrics highlighted in the October MLI indicate a significant upturn in originations to begin the fourth quarter. New business volume increased from September's $5.06 billion to $6.59 billion, representing a 30.2 percent increase. This is the highest reported amount of new business volume for any month this year and the second month in a row that has happened. However, this increase can be attributed to one respondent more than doubling its new business volume from the previous month.

"The outlook for the fourth quarter is very solid," according to Ralph Petta, Vice President of Industry Services for the ELA. "Strong new business originations coupled with solid portfolio quality point to a healthy leasing and finance business. Hopefully, these metrics hold throughout the quarter," he said.

Delinquencies (net of unearned income billed but not yet received) remained virtually unchanged from September, coming in at 97.8 percent. However, this remains below March's high of 98.46 percent. Credit approval ratios increased very slightly to 82.7 percent compared with 82.0 percent in September. Average charge-offs, however, decreased slightly, coming in at 0.57 percent, down from September's 0.69 percent. The total number of employees decreased slightly to 8,962 compared to 9,001 in September.

The MLI is issued on the 30th of every month(1) and provides trend analysis across all major performance areas of lessors, including new business volume, aging of receivables, average loss, credit approval ratios and number of employees.

Because the same companies participate in the study each month, the MLI provides a fairly reliable and consistent trend analysis of current industry activity. Results of each MLI are posted on the ELA website and in Equipment Leasing Today magazine.

Charts and graphs are available for reprint to members of the accredited media. The illustrations reflect the data provided by those companies responding to that particular question. Typically, not every company polled responds to every question.

In addition to the MLI, ELA provides a variety of data, including customized market analyses, to ELA members and organizations involved in the forecasted $248 billion equipment leasing industry. To access this and other industry information, visit the ELA website at http://www.elaonline.com/IndustryData/ or contact Dean Frutiger at (703) 516-8380.

GE may sell off distribution unit

noreply@blogger.com (GCR Capital) — Wed, 16 Nov 2005 16:15:00 +0000

2005-11-16 Beijing Time
GENERAL Electric Co plans to seek buyers for an electrical-parts distribution unit as it exits slow-growing businesses, people familiar with the matter said.

A sale of GE Supply may raise as much as US$700 million, said the sources, who declined to be identified because no announcement has been made. The unit generates about US$70 million in earnings before interest, tax, depreciation and amortization, they said.

GE Chief Executive Officer Jeffrey Immelt has sold dozens of businesses since he took over in 2001 to focus on more profitable units such as medical-imaging equipment. GE Supply, formed in 1929 and based in Shelton in the US state of Connecticut, sells electrical products such as light fixtures from GE and more than 200 other manufacturers to customers including commercial-building contractors.

'GE is concentrating on higher-tech businesses, and this is more of a distribution business,' said Mark Demos, an analyst at Fifth Third Asset Management in Cincinnati, Ohio, which owns about 13 million shares in General Electric, the world's biggest company by market value. 'There's not a lot of value GE can add to that business.'

A spokeswoman for GE declined to comment.

Companies that compete with GE Supply or buyout firms that value steady cash flow may be interested in buying the business, said Fifth Third's Demos.

Clayton, Dubilier & Rice Inc, a New York-based buyout firm, and Wesco International Inc, a competitor of GE Supply, have bought electrical-distribution assets this year.

GE Supply has more than 150 locations in the United States, Puerto Rico, Mexico and elsewhere.

Immelt may sell GE units involved in the manufacturing of appliances, plastics and equipment leasing and use the proceeds to buy back shares, wrote Nicholas Heymann, an analyst at New York-based Prudential Equity Group, in a September 14 note to clients.

GE plans to save as much as US$1.2 billion in 2006 by combining operations into six divisions from 11. Immelt has raised more than US$25 billion selling satellite, electric motor, industrial diamond and other businesses. The company on September 21 sold about half of its 52 percent stake in insurer Genworth Financial Inc for US$2.36 billion and plans to sell the rest by the end of 2006.

Consolidation in the electrical parts distribution industry has picked up this year, with Paris-based Rexel SA's acquisition by a Clayton Dubilier-led group for about US$3.5 billion and Wesco's purchase of Carlton-Bates Co for US$250 million. Until 1994, Pittsburgh-based Wesco was part of GE rival Westinghouse Electric Corp.

GE Supply's biggest competitors are closely held Graybar Electric Co, Wesco and Anixter International Inc."

GE May Sell Electric-Parts Distributor for $700 Mln, People Say

noreply@blogger.com (GCR Capital) — Tue, 15 Nov 2005 13:23:00 +0000

Nov. 15 (Bloomberg) -- General Electric Co., the world's biggest company by market value, plans to seek buyers for an electrical-parts distribution unit as it exits slow-growing businesses, people familiar with the matter said.

A sale of GE Supply may raise as much as $700 million, said the people, who declined to be identified because no announcement has been made. The unit generates about $70 million of earnings before interest, tax, depreciation and amortization, they said.

GE Chief Executive Officer Jeffrey Immelt has sold dozens of businesses since he took over in 2001 to focus on more profitable units such as medical-imaging equipment. GE Supply, formed in 1929 and based in Shelton, Connecticut, sells electrical products such as light fixtures from GE and more than 200 other manufacturers to customers including commercial- building contractors.

``GE is concentrating on higher-tech businesses and this is more of a distribution business,'' said Mark Demos, an analyst at Fifth Third Asset Management in Cincinnati, which owns about 13 million General Electric shares. ``There's not a lot of value GE can add to that business.''

Kim Freeman, a spokeswoman for Fairfield, Connecticut-based GE, declined to comment.

Companies that compete with GE Supply or buyout firms that value steady cash flow may be interested in buying the business, said Fifth Third's Demos, who declined to name potential suitors. Demos said he didn't know whether GE Supply was for sale.

Immelt's Strategy

Clayton, Dubilier & Rice Inc., a New York-based buyout firm, and Wesco International Inc., a competitor of GE Supply, have bought electrical-distribution assets this year. James Rogers, a former GE executive now at Clayton Dubilier, and Stephen Van Oss, Wesco's chief financial officer, didn't return calls seeking comment.

GE Supply has more than 150 locations in the U.S., Puerto Rico, Mexico and elsewhere, according to its Web site.

Immelt may sell GE units involved in the manufacturing of appliances, plastics and equipment leasing, and use the proceeds to buy back shares, wrote Nicholas Heymann, an analyst at New York-based Prudential Equity Group, in a Sept. 14 note to clients.

Selling Stakes

GE plans to save as much as $1.2 billion in 2006 by combining operations into six divisions from 11. Immelt has raised more than $25 billion selling satellite, electric-motor, industrial-diamond and other businesses. The company on Sept. 21 sold about half of its 52 percent stake in insurer Genworth Financial Inc. for $2.36 billion and plans to sell the rest by the end of 2006.

Consolidation in the electrical-parts distribution industry has picked up this year, with Paris-based Rexel SA's acquisition by a Clayton Dubilier-led group for about $3.5 billion and Wesco's purchase of Carlton-Bates Co. for $250 million. Until 1994, Pittsburgh-based Wesco was part of GE rival Westinghouse Electric Corp.

GE Supply's biggest competitors are closely held Graybar Electric Co., with $4.08 billion of 2004 sales, followed by Wesco, with $3.74 billion, and Anixter International Inc. at $3.28 billion, wrote Curt Woodworth, an analyst at New York- based JPMorgan Chase & Co., in a Nov. 3 research report.

GE doesn't disclose results for the supply unit."

SunTrust Promotes Two Executives

noreply@blogger.com (GCR Capital) — Mon, 14 Nov 2005 16:05:00 +0000

ATLANTA, Nov. 14 /PRNewswire-FirstCall/ -- SunTrust Banks, Inc. (NYSE: STI) today announced that Brian E. Szabo has been named manager of its Corporate Strategies Unit, and David G. Bilko has been promoted to General Auditor, succeeding Mr. Szabo.

In his new role, Mr. Szabo will oversee the company's long range strategic planning, expansion strategy, and provide strategy development and implementation support to all lines of business. Mr. Bilko assumes responsibility for all of the company's internal audit activities. 'These promotions reflect SunTrust's ongoing focus on matching senior executive talent to support the achievement of the company's strategic and business goals,' said David F. Dierker, corporate executive vice president and chief administrative officer for SunTrust. Mr. Szabo has served as SunTrust's General Auditor since 1999.

He joined SunTrust predecessor, Crestar Financial Corp., in 1990 and held a variety of increasingly responsible positions in the finance area. In 1997, he was named chief audit executive for Crestar, which merged with SunTrust in late 1998. A certified public accountant, Mr. Szabo earned a bachelor's degree from Eastern Michigan University. Mr. Bilko, a 24-year banking industry veteran, is a career auditor with broad experience.

He joined a SunTrust predecessor in 1985 and most recently, was responsible for the audit practice for the company's Wealth and Investment Management line of business in addition to overseeing strategy and prioritization within SunTrust Audit Services. Mr. Bilko is a graduate of University of Virginia and earned an MBA from George Mason University. In addition, he completed the Graduate School for Bank Administration Audit Management Program and is a Certified Employee Benefits Specialist. SunTrust Banks, Inc., headquartered in Atlanta, is one of the nation's largest banking organizations, serving a broad range of consumer, commercial, corporate and institutional clients. As of September 30, 2005, SunTrust had total assets of $172.4 billion and total deposits of $113.7 billion. The Company operates an extensive branch and ATM network throughout the high- growth Southeast and Mid-Atlantic states and a full array of technology-based, 24-hour delivery channels. The Company also serves customers in selected markets nationally. Its primary businesses include deposit, credit, trust and investment services. Through various subsidiaries the Company provides credit cards, mortgage banking, insurance, brokerage, equipment leasing and capital markets services. SunTrust's Internet address is suntrust.com."

Abu Dhabi firm buys stake in Bahrain bank

noreply@blogger.com (GCR Capital) — Sat, 12 Nov 2005 16:26:00 +0000

Abu Dhabi firm buys stake in Bahrain bank

MANAMA: The newly formed Abu Dhabi-based financial institution, Abu Dhabi Investment House (ADIH), has acquired a stake in Bahrain's First Leasing Bank (FLB), contributing to its capital.

FLB, incorporated last year, is the first bank in Bahrain dedicated exclusively to the introduction and expansion of equipment leasing throughout the GCC.

The company's primary leasing products are finance leases and operating leases, to the commercial and government sectors in the region.

With this development ADIH, incorporated in September, joins Bahrain- based institutions, Gulf Finance House and Ithmaar Bank, US-based Overland Capital Group and the Kuwait-based Gulf Investment House, as the principal institutional shareholders of FLB.

ADIH chief executive officer and founders committee member Rashad Yusuf Janahi said economic liberalisation in the region was reflected in an increased focus on privatisation initiatives, enhanced government spending on infrastructure and employment programmes and the growth of sophisticated financial investments.

These are all sure signs of economies ready to move beyond cash and term loans in order to build capital infrastructure, he said.

'ADIH has been set up with the aim of providing diligent investors a variety of high-yielding investment opportunities in the region,' he said.

'We have identified equipment leasing as one such business sector that has potential for tremendous growth.'

Mr Janahi said that FLB, as one of the pioneers in the area of equipment leasing in the region, had succeeded in making leasing an integral and sophisticated force in the capital formation structure of GCC companies and institutions.

'Our decision to partner with FLB was made after a thorough due diligence exercise, which included a careful study of both the market and the existing players within the equipment leasing sector,' he said.

'We firmly believe that as a provider of high-quality asset based financing, FLB effectively combines sound local knowledge, with a strong management team that has substantial international experience in lease-financing.'

FLB chief executive officer James Cracco said the bank's partnership with ADIH would provide it with added bandwidth, resources and reach to aggressively pursue core objectives of serving the business community in the region through leasing and other investment tools and thus enhance both productivity and profitability. 'We are especially looking forward to working closely with ADIH and their contacts to increase our economic presence in the UAE and the GCC,' he added."

Golf Business Magazine - The Golf Industry's Leading Business Publication

noreply@blogger.com (GCR Capital) — Thu, 10 Nov 2005 16:18:00 +0000

Golf Business Magazine - The Golf Industry's Leading Business Publication: "Leasing vs Buying Turf Equipment

In the debate between leasing and buying, leasing turf equipment is increasingly becoming a popular option at many golf courses across the nation.

Tim McNutt set about outfitting Harbor Lakes Golf Course in Granbury, Texas, with hundreds of thousands of dollars of turf equipment before the new Dick Phelps-designed layout opened for play last summer. The question was how much of that equipment to lease and how much to purchase, taking into consideration wear and tear caused by the combination of a grow-in and year-round golf in the Greater Dallas area. Harbor Lakes leased roughly 40 percent, with mowers accounting for most of that budget line."

"Greens mowers can be used as much as 300 days a year here," explains McNutt, vice president and partner of Prime Golf Group LLC, which operates four Dallas-area courses. "Deck and rough units are pretty much in use 200 days a year. After four years, a typical greens mower in the Dallas market will just be worn out. You would spend as much money keeping it [an owned unit] running as you would on lease payments."

Rather than simply paying cash or obtaining a bank loan, course operators like McNutt have become much more sophisticated in recent years about how they acquire turf equipment, using a combination of leasing, installment financing, cash and loans. With golf revenues flat or down in a still-struggling economy, many cash-flow-strapped courses have made the lower monthly payments available through leasing, in particular, an increasingly important part of their equipment-financing mix.

"There are a number of factors [favoring leasing]," says Rhonda Flanery, manager of sales and marketing for golf and turf leasing for John Deere, which has seen "an uptick" in lease arrangements in recent years.

Among the benefits of operating leases offered by manufacturers and third-party finance vendors are capital conservation, improved liquidity, reduced tax burdens (in some cases), access to new technology, reduced maintenance on newer equipment, flexible financial terms and improved asset management.

Because green fees are more sensitive to the ups and downs of the economy, public courses generally have been more likely than private clubs to lease equipment since private clubs benefit from more predictable membership revenues.

"Cash flow is a major factor and is the driver behind many of the decisions made at a course, regardless of type," says Flanery, whose company offers a program called the John Deere Credit MasterLease. "If you look at annual lease payments compared to laying out the capital for machines, you can certainly acquire more machines to care for the course using a MasterLease program rather than capital purchases."

With competition for golfers at an all-time high, owners must keep their facilities in tip-top shape. "If golfers find a course not in the type of condition commensurate with the green fee they have paid, in all likelihood they won't be back," Flanery says. "A course may be able to pay for only two pieces of equipment with its budget. But through the MasterLease program, it may be able to bundle four or five pieces and improve the overall play for the consumer because it has that flexibility from a cash-flow perspective."

Ron Ort, vice president of CitiCapital Commercial Corp.'s Golf Turf Division, leases Ingersoll Rand equipment as well as that of other manufacturers. "We are seeing an increase in leasing activity," he says. "It is primarily to stretch the capital budgets superintendents are forced to work with today. If you can't buy the fleet you are looking for with cash, you might be able to do so with a lease. That makes the course more efficient by replacing obsolete equipment today rather than waiting until the next budgetary cycle." Peter James is group president of captive finance with Textron Financial Corp., whose mission is to support the sale of Jacobsen and E-Z-GO equipment. Textron has seen an increase in the amount of leasing, although James believes that may be as much a function of internal company changes as it is the golf course marketplace.

"Courses like leasing because they don't have to take on the complete risk of ownership," James says. "Particularly with this type of equipment [mowers], after three or four years it is often in the courses' best interest to replace it anyway. With a lease, they do not have to pay for the whole piece of equipment. The finance company takes the risk of ownership at the end of the term. Leasing in the golf business has become the standard in golf cars and it will become the standard in turf equipment. It is a cheaper way to go in the long run, particularly if you don't want to amortize the entire cost of the equipment."

John McPhee, senior marketing manager/services with Toro, estimates 75 percent of all turf equipment is financed through leases or loans using a variety of funding sources-original equipment manufacturers, local banks, third-party finance companies and others. Toro offers a leasing program in partnership with GE Capital, providing leases through its distribution channels.

"Our financing volume has more than doubled in the past two years," says McPhee, noting that more courses chasing the same number of golfers has encouraged operators to stabilize their budgets as much as possible. "They still have fixed costs associated with operating the course regardless of the number of rounds. What they are trying to do is stabilize those costs through financing."

Because they wear out in a few years and technology changes fairly rapidly, reel mowers used on greens and fairways are obvious financing candidates. "Owners and superintendents are going to be the most conscious of those areas and want the highest quality of cut possible," McPhee says. "So they'll want to keep those fleets fresher and take advantage of new technology enhancements. Financing is a way to get into the new technology more quickly instead of waiting for a capital budget to become available."

Adds Toro Finance Marketing Manager Paul Danielson, "Tax and accounting considerations play into these decisions. If you have a product that turns over fairly rapidly, to keep the pristine conditions of the course, you may want to roll equipment in and out more quickly with fewer implications to your tax and accounting books. Most reel mowers would fall in the leasing category."

While the tax benefits of financing turf equipment are of interest primarily to for-profit facilities, municipal courses may have tax-revenue constraints that force them to work with limited budgets, making financing an attractive alternative. "It comes down to how many dollars you have to get the job done," Danielson says. "We've seen growth in financing with municipalities as well."

Though leasing makes sense in many cases, ownership may be the way to go in others. Some advantageous tax laws favor ownership, Danielson says. The benefits of the Jobs and Growth Tax Relief Reconciliation Act of 2003, set to expire in 2005, allows course owners a 50 percent depreciation bonus, meaning equipment can be depreciated more quickly. "This is a very good time to acquire equipment for a for-profit public course operator," the Toro executive says.

Also, Section 179 of the federal tax code allows a direct-expense deduction. "It used to be that small business could deduct only $24,000 in purchases. That has been raised to $100,000 for equipment put in service by the end of the year," Danielson says. "Then you couple that with the fact we are at historically low interest rates.

"Typically, one financing option will not be right for every piece of equipment. Look at it on a piece-by-piece basis. Financing should support your acquisition strategy rather than drive it."

Some equipment is worth owning because it lasts a long time, requires little maintenance and the technology changes more slowly, agrees Todd Gray, senior vice president of Wells Fargo Leasing, based in Des Moines, Iowa. Aerators, grinding equipment and tractors are examples. Course operators may use cash to purchase that type of equipment, but often prefer dollar-buyout leases that allow them to achieve ownership while saving cash flow along the way.

Two New Healthcare Equipment Leasing Studies Provide Comprehensive Overview and Details of Healthcare Financing Marketplace

noreply@blogger.com (GCR Capital) — Thu, 10 Nov 2005 04:11:00 +0000

ARLINGTON, Va. -- Two new studies were released this week which provide complementary macroeconomic overview and market-specific details for use by the equipment leasing industry.

The Equipment Leasing Association (ELA), the non-profit association representing companies involved in the forecasted $248 billion equipment leasing and finance industry, and R.S. Carmichael & Co., Inc., a New York-based marketing research and management consulting firm, have released a new report, “Healthcare Equipment Leasing: U.S. Market Dynamics and Outlook 2005-2006.”

The Equipment Leasing and Finance Foundation, a non-profit organization dedicated to enhancing recognition and understanding of equipment lease financing, released its study researched by the University of Virginia Darden School, “Long-Term Trends in Healthcare: Implications for the Leasing Industry.” Together, The Healthcare Financing Compendium provides the most comprehensive information currently available on the dynamic healthcare market and its implications for the equipment leasing and finance industry.

"These two studies provide thorough insights into the drivers of healthcare equipment leasing," said Ralph Petta, vice president of industry services for the Equipment Leasing Association. "This is a tremendous resource for organizations in healthcare and equipment leasing to understand how the healthcare marketplace is financed and why."

The ELA/Carmichael market study focuses on the leasing practices of healthcare providers, including hospitals, outpatient centers and physicians' offices. It also examines the market from the standpoint of healthcare equipment vendors and lease financing competitors.

Highlights from the report include:

-- The estimated size of the U.S. healthcare equipment leasing market in 2005 is at least $7 billion in terms of new volume.

-- The healthcare equipment leasing market is projected to exceed $8 billion in volume by 2007, attributable mainly to forecasted equipment sales growth (as opposed to significant gains in lease penetration).

-- Over the past five years the average annual rate of lease financing market growth in healthcare has been 7 percent.

-- Healthcare equipment leasing is primarily a "middle-market" business, with most transactions in the $250,000 to $5 million range.

-- The hospital market represents a growth market for IT systems (e.g., digital radiology systems that store, retrieve, distribute and display medical images in digital format).

-- The outpatient care market, especially the ambulatory surgery center segment, also continues to grow as a market for lease financing.

-- When investment in all healthcare equipment is considered, lease financing penetration is relatively low and appears to be stabilizing due, in part, to reimbursement reductions, regulations affecting physician referrals, and a lack of awareness of leasing as a tool for equipment acquisitions. However, the upside potential remains substantial although leasing companies will continue to see challenges in realizing the potential opportunities.

"Equipment leasing continues to represent a fundamental source of capital financing for healthcare providers," said Richard S. Carmichael, managing director of R.S. Carmichael & Co., Inc., which conducted the study. "Healthcare industry conditions such as steady growth, capital budget constraints and rapid technological changes create opportunities for equipment leasing to make greater inroads."

The Equipment Leasing and Finance Foundation report features an overview of healthcare industry trends, a statistical analysis of leasing transactions and implications for leasing and finance organizations.

Among the study findings:

-- The healthcare industry in 2004 represented a $1.8 trillion annual market that accounted for 15.4 percent of total gross domestic product (GDP).

-- Healthcare's share of GDP is expected to continue to increase every year to 2014 as healthcare expenditures growth are expected to outpace GDP growth.

-- Small, professional firms are the most significant business form in the healthcare sector, followed by not-for profit organizations.

-- The critical element in improving the productivity of the healthcare industry and reducing its cost growth is capital investment in productivity improving technology that will substitute capital for labor.

"Knowledge of both historical and future trends in the healthcare industry is key to participating in this marketplace," said Lisa Levine, executive director of the Foundation. "The Foundation study on long-term healthcare trends provides those and other critical perspectives on the healthcare industry."

Source: Equipment Leasing Association (ELA) and R.S. Carmichael & Co., Inc.

iSECUREtrac Reports Record 3rd Quarter Revenues: Financial News

noreply@blogger.com (GCR Capital) — Wed, 09 Nov 2005 17:36:00 +0000

OMAHA, Neb., Nov. 9 /PRNewswire-FirstCall/
iSECUREtrac(TM) Corp. an industry leader in offender monitoring solutions utilizing global positioning systems (GPS) and wireless technologies, reported third quarter 2005 revenues of $1.37 million, a 6% increase over the third quarter of 2004. Recurring revenues from the leasing and hosting of monitoring systems were $1.18 million for the third quarter, an increase of 24% over the comparable period last year.

Year to date, total revenues were $3.83 million, a 13% increase over the same period a year ago. The Company reported net loss of $1.02 million and $3.05 million, respectively, for the three and nine months ending September 30, 2005, compared to net losses of $1.61 and $7.78 million for the same periods last year.

'The successful completion in June of our strategic initiative has allowed us to concentrate efforts on growing our recurring revenue stream. It is paying off as evidenced by October billings in excess of $500,000,' said David Vana, CFO of iSECUREtrac. 'This growth is continuing at an accelerated pace and we expect $1.7 million of revenues for the 4th quarter, a 24% increase over the 3rd quarter. For the year, we project revenues in excess of $5.5 million primarily on the strength of offender monitoring devices in the field under lease agreements which should top out at over 3,800 units by December 31st.'

'We are proud to be taking over the leading role of offender monitoring in the USA,' said Tom Wharton, CEO of iSECUREtrac. 'As the demand for GPS monitoring continues to grow from sex offender monitoring legislation, domestic violence programs, methamphetamine user supervision programs, and critical federal and state offender re-entry initiatives, specialized community supervision programs are developing that require our state of the art GPS monitoring systems,'

'We are pleased to have recently won contracts with the most sophisticated EM users in the country, each requiring GPS systems that demand the critical features that our system has to offer. Market momentum continues to build, and state legislation for sex offender monitoring will produce a record number of GPS monitoring requirements for years to come,' continued Wharton."

U.S. Equipment Leasing & Finance Foundation Publishes Groundbreaking White Paper on China

noreply@blogger.com (GCR Capital) — Wed, 09 Nov 2005 04:10:00 +0000

ARLINGTON, Va., Nov. 8 /PRNewswire/ -- A growing number of lessors exhibiting cautious optimism are slowly, but successfully, knocking down the great wall that separates them from turning lease financing into a mainstream financial product in China to help companies acquire critical equipment.

This sentiment is summarized in a white paper on China today released by
the Equipment Leasing & Finance Foundation.

Like any new market, China presents a number of formidable -- sometimes
daunting -- challenges for lessors. Overcoming them as the country moves
toward a market-based economy makes the job that much more compelling. Careful
planning and execution, however, are leading to success for early entrants.

"The penetration rate of leasing in China is less than one-half of one
percent, as compared to the prevailing level of 30 percent in the United
States and other mature markets," said Foundation Executive Director Lisa
Levine. "Obviously there is tremendous growth potential for the Chinese
leasing industry. As the Chinese economy continues to evolve, learning from
the experiences of early entrants -- both good and bad -- could determine the
chances of success or failure for new lessors."

The Foundation commissioned The Alta Group consultancy to develop the
white paper entitled, "Knocking Down the (Great) Walls: Identifying Factors
for Success in the Chinese Equipment Leasing Market," available through the
ELA.

"To many people in our industry and business in general, China represents
this big morass of unknowns," said Alta Group Managing Principal John Deane.

"This white paper helps companies secure a better understanding of the Chinese
market and determine the minimum requirements for operating there, including
risks that must be addressed to be successful.

"Many of the lessons learned by lease finance providers in China and
discussed in the paper can actually be transferred to companies in other
industries who are evaluating such a move to this burgeoning market."

Content for the white paper was derived largely through extensive
interviews with a number of lessors currently operating in China. The document
includes case study overviews of each of their experiences.

The interviewed lessors include, among others:

* A captive lessor whose parent is a large, United States-based
manufacturer of industrial equipment;
* An international technology company whose China leasing activities are
conducted by a joint venture leasing company with a Chinese lessor
partner;
* A Hong Kong-based bank that writes offshore leases into China;
* A local Chinese-owned lessor; and,
* An international bank-owned equipment lessor that has studied the China
equipment leasing market carefully, but has chosen not to enter the
market yet.

"Our research indicated that the infrastructure needed for a viable
equipment leasing industry in China is not fully in place," Deane said. "As a
result, it's critical that lessors be armed with adequate and accurate
information regarding the opportunities and pitfalls in this market. Many of
the risks in China are the same as those in other markets, except they are
compounded by time and distance. There also are some uniquely Chinese beyond
differing tax and accounting rules."

Key findings discussed in the white paper include:

* There are plenty of risks in doing business in China, but nothing that
cannot be overcome through diligence and careful planning. Of greatest
concern are credit reporting and the legal environment in China, both of
which are extremely challenging -- as are the regulatory process and tax
system. The understanding and acceptance of leasing is improving,
however, helping lessors carefully maneuver through these obstacles.

"Central databases of credit histories just don't exist in China, so you
can't run your business there like other markets," Alta principal and
co-author Jonathan Fales said. "Consequently, you need to know your
customers on a personal basis. Local lessors and those with Chinese
partners have this knowledge and advantage. Over time, this process will
become more westernized, but this is still several years away."

* Unless there is a customer-driven need, most foreign lessors should not
enter the market just yet. Given the risks involved, waiting until the
market is better prepared for modern lease financing is prudent. But, if
it appears a customer or parent company will need lease finance support
in any way, there should be no hesitancy to move into China and
establish operations.

"When the timing is right, the sooner a lessor enters this market the
better chance they have at grabbing a foothold of business," Fales said.
"There are some risks to be sure, but the sooner you get to China and
establish your operation, the better shape you will be with a few years
of experience before the expected rush into the market later this
decade."

* More than one business model seems to work for lessors in China. Wholly
foreign-owned enterprise (WFOE), joint venture, offshore and Chinese-
owned onshore lessor arrangements all seem successful, depending on the
specific needs of the lessor and customer. Partnerships with Chinese
lessors can shorten the time to market, but it can be difficult to find
a suitable partner due to a variety of cultural differences and control
issues.

"Based on our analysis of the leasing industry and benchmarking of other
industries where foreign investors have ventured into China, we've found
it advantageous for a foreign lessor to team with a Chinese partner,"
Alta Principal Rafael Castillo-Triana said. "Finding such a partner with
financial stability and significant experience in leasing can be a
challenge but, if the right one is found, this can ease a lessor's
entrance into the Chinese market."

* Business plans must account for an acute shortage of local talent in
China. Across the globe, the leasing industry is insular and has had to
largely train its own people. This situation is surprisingly even more
exaggerated in China. Most executives come from the traditional banking
and finance industries, with little if any exposure to the practice of
lease financing. Significant recruiting and training resources must be
dedicated to address this situation.

"At this point, if you talk to the major lessors in China and ask them
who the key people are in the industry, you hear the same set of names
from each," Fales said. "The talent pool to service the market needs to
grow significantly before leasing will become a mainstream industry in
China."

* Leasing is still a new concept for many Chinese businesspeople. There is
a surprisingly low level of understanding of basic lease finance
concepts in China, even among vendor and reseller executives.
Significant marketing and training resources must be dedicated to
overcome this issue.

"Virtually all of the lessors we interviewed were amazed by the fact
that leasing is not a well understood concept in China, despite the
emerging market economy," Castillo-Triana said. "They realize time and
effort are needed to educate this evolving market on the advantages of
leasing."

* The used equipment market in China is largely undeveloped. Chinese
businesses have historically avoided used equipment due to a combination
of reliability concerns and negative connotations associated with the
purchase of used equipment. There is great potential to build a strong
used equipment market for some assets, including IT and telecom
equipment.

"Perceptions toward used equipment are slowly changing, especially as
foreign manufacturers with better quality equipment enter China," Fales
said. "People are starting to realize, for example, that a piece of
machinery or construction equipment three or four years old may actually
be in good shape and worth buying on the used-equipment market. This is
another cultural issue that is going to take some time to overcome."

* Patience is critical in establishing any business in China. Little
happens fast in this country. Both Chinese and foreign lessors have
painfully experienced the lengthy process of securing government
approvals. Just trying to secure a signature on a simple document
sometimes takes months. As a general rule of thumb, plan double the time
needed when working in this market place.

"When it comes to business, anything the Chinese government touches
takes a lot longer to get done than other countries, but this is true
for virtually every industry in the country," Fales said. "This
certainly increases the time needed to get into the market. Once a
lessor decides to enter China, it takes at least 6-9 months, probably
longer to get everything in place to do business."

Farmers in split decision over fraudulent equipment lease

noreply@blogger.com (GCR Capital) — Tue, 08 Nov 2005 16:08:00 +0000

(Associated Press) LITTLE ROCK - A federal court should not have granted a farm-equipment company's credit arm a complete victory in a dispute with farmers whose signatures were forged on purchase agreements and credit card applications, an appeals court says.

While an Arkansas federal judge ruled properly that a local farm equipment dealer wasn't an agent for the Racine, Wis.-based Case Credit Corp., limiting Case's liability on a fraud claim, the judge should not have rewritten the forged contracts in an attempt to settle the dispute, according to the decision handed down Monday.

The 8th Circuit Court of Appeals in St. Louis sent the case back for more proceedings.

Six farmers sued Case Credit Corp., alleging they had oral agreements with a Case International Harvester dealer in Arkansas to purchase or lease equipment between 1996 and 1998. Written agreements, prepared later, did not match the oral agreements, the court said.

According to the court, the dealer inflated prices, forged signatures and obtained thousands of dollars in overpayments. The dealer also forged signatures on credit card accounts to cover repairs and warranty work he had agreed to provide under the oral agreements.

Case discovered the fraud and asked the farmers to sign 'Account Verification' forms to show which equipment they were using. The farmers refused to sign, saying the documents had overstated price figures. Case said the forms would be used only to affirm possession of the equipment, but later tried to use the documents to enforce the forged agreements.

The farmers offered to meet the terms of their oral agreements with the deal, but Case refused, prompting the court fight. The farmers said Case was trying to use the verification forms to accomplish what the dealer's false documents could not - and that that was a claim that the court must consider further.

The 8th Circuit agreed with Case that it shouldn't be held liable for the dealer's alleged fraud because the dealer wasn't authorized to enter contracts on Case's behalf.

The court did, however, say Case couldn't enforce any provision of the forged contracts - even after the lower court modified them - because forged documents, under the law, are void from their inception as though they never existed.

'The district court could no more reform the nonexistent written contracts than Case could seek to enforce them,' the court wrote."

Truck, Construction Repossessions Show Increase in Q3

noreply@blogger.com (GCR Capital) — Thu, 03 Nov 2005 20:39:00 +0000

WESTBURY, N.Y., Nov. 3 /PRNewswire/ -- Equipment repossessions and liquidations nationwide continued to rise during the third quarter, most notably for trucks and construction machinery, reports Nassau Asset Management. Nassau's NasTrac Quarterly Index (NQI) reveals trends in repossessions and orderly liquidations based upon the company's internal activity.

Nassau (http://www.nasset.com/) provides asset recovery, appraisal, collections, liquidation and remarketing services for equipment finance companies across the nation. The company earlier this year noted that repossessions and liquidations during the first two quarters increased significantly for the first time since 2002.

Nassau's latest NQI shows repossessions and liquidations during third quarter (Q3) 2005 compared with Q3 2004 increased in four of five categories: trucks/trailers ( 188%); construction equipment ( 126%); printing presses ( 49%); and machine tools ( 22%). Repossessions and liquidations of medical devices decreased for the first time in 2005 (-24%).

Edward Castagna, Nassau's president, says several factors appear to be influencing the upswing in some repossessions and liquidations.

'The obvious answer is that adverse economic conditions are driving up some repossessions. This is true, but not the whole story,' Castagna explains.

'Fuel costs are among the adverse economic conditions affecting repossessions. There is no question that rising fuel costs earlier this year made it harder for truckers, construction companies and other firms to do business,' Castagna says. A September 2005 Duke University/CFO Magazine Business Outlook survey cited high fuel costs as the top concern for U.S. firms polled.

'Yet part of the increase in repossessions and liquidations may also be attributed to greater leasing activity,' Castagna adds. For example, if lease volume is up, even if delinquencies are as low as 1%, liquidations and repossessions will rise.

The Equipment Leasing Association's (ELA) annual volume chart shows overall leasing volume peaked at $247 billion in 2000, then decreased to a lowpoint of $194 billion by 2003. The most recent chart estimates that 2004 volume would increase to $220 billion, with 2005 volume potentially topping the industry's $247 billion peak.

The ELA recently reported that new business volume in September reached $5.06 billion, the highest for any month in 2005 and an increase of 18.1% over August."

Romania: Leasing market reaches EUR 1.6 bln

noreply@blogger.com (GCR Capital) — Thu, 03 Nov 2005 20:31:00 +0000

03 November 2005
The leasing market reached a value of EUR 1.6 bln in the first nine months of the year, representing 90 percent of the value registered in 2004, according to an estimate of the Romanian Leasing Companies Association (ASLR), 'ACT Media News Agency' informs.

The contracts concluded in the first nine months of the year reached a value of EUR 860 M, the ASLR press release states. The ASLR member companies have reached 84 percent of the total value of leasing contracts concluded in 2004. ASLR has 49 members and holds over 54 percent of the Romanian leasing market.

In the period of January to September, goods worth EUR 706.5 M have been financed, and out of these automobiles held a share of 90.5 per cent. Equipment represented 6.2 per cent of the total portfolio while the real estate sector was financed only in a proportion of 0.47 per cent. However, this year real estate registered a growth of 80 percent as compared with 2004. Vehicles registered a decrease of 2 percent as compared with last year but the deficit was “compensated by the positive weight of financing industrial equipment, where a growth from 4 to 6 percent was registered in sales,” the press release reads.

Contracts with foreign suppliers represented 60 percent of the total value of goods financed through leasing in the first three quarters of the year. In regard to the maturity, the vast majority of clients, approximately 85 percent, prefer contracts with a medium term maturity of 3-5 years, as compared to a maturity of 1-2 years. The cross-border operations have a share of 1.5 percent in the total of operations conducted by ASLR members, keeping within the range of 2 percent which has been common so far. Operational leasing is constantly losing ground to financial leasing, losing in the past period 4 percent from the 7 percent registered at the end of 2004.

The value of the goods financed through leasing held a share of 63 percent of the contracts, while the public sector and the NGO held 26 percent and individuals 11 percent. Porsche Leasing Romania is the leader within the ASLR, having a market share of 22.2 percent. BCR Leasing follows up by 20.1 percent, Afin leasing by 10.4 percent and RCI Leasing Romania by 9.5 percent.

Source: 'ACT Media News Agency'"

Marlin Business Services Corp. Reports Third Quarter 2005 Earnings

noreply@blogger.com (GCR Capital) — Thu, 03 Nov 2005 16:55:00 +0000

Marlin Business Services Corp. (Nasdaq: MRLN) today reported net income of $3.4 million for the third quarter ended September 30, 2005, consistent with net income of $3.4 million for the same period in 2004.

Diluted net income per share was $0.29 for both the third quarters of 2005 and 2004. Net income in the third quarter of 2005 was impacted by a $753,000 after tax charge, or $0.06 net income per diluted share, for expected losses related to Hurricane Katrina.

Excluding the impact of Hurricane Katrina, net income for the quarter ended September 30, 2005 would have been $4.2 million, or a 23.6% increase over the $3.4 million of net income reported for the quarter ended September 30, 2004.

For the nine months ended September 30, 2005 net income was $11.9 million compared to $9.9 million for the same period in 2004. Diluted net income per share for the nine-month period ended September 30, 2005 was $0.99 compared to $0.84 per diluted share reported for the same period in 2004. Net income in the nine-month period ended September 30, 2005 was impacted by the same $753,000 after tax charge, or $0.06 net income per diluted share, for expected losses related to Hurricane Katrina. Excluding the impact of Hurricane Katrina, net income for the nine-month period ended September 30, 2005 would have been $12.6 million, or a 28.0% increase over the $9.9 million of net income reported for the nine-month period ended September 30, 2004. 'Overall, I'm pleased to report another solid quarter of earnings performance led by strong asset originations and exceptional asset quality,' said Daniel P. Dyer, Chairman and CEO of Marlin Business Services Corp."

Highlights for the quarter ended September 30, 2005 include:
-- Net charge-offs were 1.46% of average net investment in leases during
the third quarter of 2005 compared to 1.74% for the second quarter of
2005 and 1.99% for the full year ended December 31, 2004.

-- Marlin successfully completed its seventh term asset backed
securitization in August totaling $340.6 million, including
approximately $109 million in pre-funding which will provide
attractive fixed rate funding into the fourth quarter of 2005.

-- The Company filed an application for an Industrial Bank Charter with
the FDIC and the State of Utah Department of Financial Institutions
on October 6, 2005.

Asset Origination
-- Based on initial equipment cost, lease production was $79.6 million
in the third quarter of 2005 compared to $85.0 million in the second
quarter of 2005 and $68.9 million in the third quarter of 2004. Net
investment in leases was $557.9 million at September 30, 2005.

-- Our end user customer base grew to more than 81,000 at September 30,
2005 compared with 80,000 at June 30, 2005 and 75,000 at
September 30, 2004. The number of active leases in our portfolio was
approximately 102,000 at September 30, 2005.

Credit Quality
-- The provision and allowance for credit losses was increased in the
third quarter of 2005 by an incremental $1.25 million related to
Hurricane Katrina.

-- Net charge-offs totaled $2.0 million for the quarter ended
September 30, 2005 compared with $2.2 million for second quarter of
2005.

-- On an annualized basis, net charge-offs were 1.46% of average net
investment in leases during the third quarter of 2005 compared to
1.74% for the second quarter of 2005 and 1.99% for the full year
ended December 31, 2004.

-- As of September 30, 2005, 0.72% of our total lease portfolio was
60 or more days delinquent, compared to 0.57% as of June 30, 2005 and
0.78% as of December 31, 2004.

-- Allowance for credit losses was $7.9 million as of September 30,
2005, compared to $6.3 million as of June 30, 2005. Allowance for
credit losses as a percentage of net investment in leases was 1.44%
at September 30, 2005 compared to 1.21% at June 30, 2005. The
allowance for credit losses was increased in the third quarter by an
additional $1.25 million, or 0.22% as a percentage of net investment
in leases, related to Hurricane Katrina.

-- At September 30, 2005, the allowance for credit losses was 169.7% of
leases 60 or more days delinquent compared to 179.8% at June 30,
2005.

-- In conjunction with this release, static pool loss statistics have
been updated as supplemental information on the investor relations
section of our website at http://www.marlincorp.com.

Net Interest and Fee Margin and Cost of Funds
-- The net interest and fee margin was 11.99% as a percentage of average
net investment in leases for the quarter ended September 30, 2005, a
decrease of 61 basis points compared to 12.60% for the quarter ended
June 30, 2005. The decrease in margin is principally attributed to a
decline in fee income and to additional interest expense attributed
to the 2005 term securitization transaction, which included a
$109 million pre-funding amount.

-- The average implicit yield on new business was 12.61% for the quarter
ended September 30, 2005 compared to 12.70% for the quarter ended
June 30, 2005.

-- Fee income as a percentage of average net investment in leases was
3.15% for the quarter ended September 30, 2005 compared to 3.57% for
the quarter ended June 30, 2005. The decrease in fee income is
primarily attributed to lower net residual income on disposed
equipment in the current quarter compared to the second quarter of
2005. Net residual income from disposed equipment was a net loss of
$111,000 in the third quarter ended September 30, 2005 compared to a
net gain of $165,000 in the second quarter ended June 30, 2005.

-- The average cost of funds as a percentage of net investment in leases
was 4.19% for the quarter ended September 30, 2005. This was a 46
basis point increase from the 3.73% for the quarter ended June 30,
2005. The Company normally sees an increase in its cost of funds in
the quarter it completes a term securitization transaction as it
generally refinances lower cost variable rate warehouse borrowings
with higher cost fixed rate term borrowings. In addition, the
Company increased its available financing through a pre-funding
feature in the recent term securitization transaction. The
pre-funding proceeds of $109 million will be used to finance new
lease production into the fourth quarter of 2005. The pre-funding
amount increased cost of funds as a percentage of net investment in
leases by approximately 10 basis points in the current quarter.

Operating Expenses
-- Salaries and benefits expense was $4.6 million in the third quarter
of 2005 compared to $4.4 million in the second quarter. Salaries and
benefits expense was 3.4% as an annualized percentage of average net
investment in leases for both the second and third quarters of 2005
compared to 3.1% in the third quarter of 2004. In the third quarter
of 2005, the Company incurred approximately $60,000 of salaries and
benefits expense associated with the hiring of management related to
its planned Marlin Business Bank.

-- Other general and administrative expenses were $3.1 million for the
third quarter of 2005, an increase of $100,000 from $3.0 million for
the second quarter of 2005. Other general and administrative
expenses as an annualized percentage of average net investment in
leases was 2.3% for both the second and third quarters of 2005
compared to 2.2% in the third quarter of 2004. The Company incurred
approximately $89,000 of legal, accounting and filing fees in the
third quarter of 2005 associated with shelf registration statements
filed with the SEC.

Funding and Liquidity
-- On August 18, 2005, we completed our seventh term asset-backed
securitization transaction at a weighted average fixed borrowing cost
of 4.5% over the term of the transaction. The securitization
amounted to $340.6 million, and the note classes were rated P-1/A-1+,
Aaa/AAA, A2/A, and Baa2/BBB by Moody's Investors Service, Inc. and
Standard & Poor's Ratings Services. Proceeds from the transaction
were used to repay the Company's revolving warehouse credit
facilities and provide additional liquidity for future lease
production.

-- On August 15, 2005, the Company elected to exercise its call option
and pay off its 2002-1 term securitization when the remaining note
balances outstanding were approximately $26.5 million at a coupon
rate of approximately 4.4%.

-- On August 26, 2005, the Company extended its $40 million revolving
bank facility. The facility now expires on August 31, 2007.

-- Capital increased an additional $384,000 through the exercise of
employee stock options and the related tax benefits during the third
quarter of 2005.

-- Our debt to equity ratio was 5.42:1 at September 30, 2005 compared to
4.55:1 at June 30, 2005. The increase in this ratio is primarily
attributed to the additional borrowings associated with
$109.0 million pre-funding feature of our 2005 term securitization.
Our debt to equity ratio was a similar 5.59:1 at September 30, 2004
following our 2004 securitization.

Forsythe Technology Inc.: With Interest Rates Inching up, Some Companies Rethinking How to Acquire Needed IT Equipment

noreply@blogger.com (GCR Capital) — Wed, 02 Nov 2005 14:27:00 +0000

SKOKIE, Ill.--(BUSINESS WIRE)--Nov. 2, 2005--U.S. organizations plan to increase IT expenditures by 5.5 percent in 2006, according to preliminary results from a recent Gartner, Inc., survey. Yet, with interest rates on the rise, finance and IT managers may be beginning to rethink their IT budgeting and acquisition strategies, according to one industry expert.

'We are now fielding a number of inquiries from customers concerned about how they can better manage their critical IT portfolios in the evolving economic climate,' said John Carcone, senior vice president of financial services at Forsythe Technology Inc., a provider of information technology infrastructure and leasing solutions. 'As interest rates increase and money gets more expensive, it's important to determine the best method for acquiring and financing needed IT equipment.'

Carcone believes this may signal an uptick in interest in leasing as an alternative.

'Our experience over the years in every type of economic cycle shows that leasing becomes a more popular and attractive option when interest rates escalate,' he said. 'Even companies with substantial cash reserves discover there are better ways to use that cash than tying it up in depreciating assets such as IT equipment.

The recently released Equipment Leasing Association Monthly Leasing Index for September confirms Carcone's observation. The index shows that leasing new business volume increased 18.1 percent in September, the highest reported new business volume number of any month this year.

'Leasing provides fixed, scheduled payments to simplify expense budgets and provides a hedge against rising interest rates,' said Carcone. 'This tactic both protects businesses from inflation and allows them to project future cash outlays with greater accuracy.'

According to Carcone, leasing IT equipment can:

-- Conserve Capital. Leasing offers a low initial investment because large capital outlays are avoided and working capital is preserved.

-- Preserve Credit. Leasing IT equipment frees your line of credit for short-term operating capital or other unanticipated expenses.

-- Offer Flexibility. Leasing is flexible and can be structured for your company's particular needs. Payments may be set up to match your cash flow. Shipping, installation and other 'soft' costs may be included in your lease.

-- Refresh Technology. Leasing your equipment can help you keep up with technology. Your vendor can replace or upgrade equipment either mid-term or at the end of the lease.

-- Save Taxes. Qualified leases may allow payments to be written off for operating expenses, reducing short-term taxable income.

-- Simplify Procurement. Leasing simplifies IT procurement by eliminating worries about the logistics and liability issues of equipment disposal.

-- Bring Convenience. Simple application by phone or fax, fast decisions, and personal service will make leasing convenient.

'As with all aspects of IT acquisition and management, organizations make the decision to lease based on an evaluation of internal needs and circumstances as well as external economic factors such as interest rates,' adds Carcone."

Third Quarter 2005 Net Income up 16.9 Percent at Evans Bancorp; Solid Loan and Insurance Revenue Growth over Prior Year

noreply@blogger.com (GCR Capital) — Tue, 01 Nov 2005 14:18:00 +0000

ANGOLA, N.Y.--(BUSINESS WIRE)--Nov. 1, 2005--Evans Bancorp, Inc. (Nasdaq: EVBN) today reported strong net income and loan growth for the quarter ended September 30, 2005. Evans Bancorp, Inc. is the holding company for Evans National Bank, a commercial bank with 10 Western New York branches, and approximately $459.5 million in assets. It is also the holding company for Evans National Financial Services, Inc., whose subsidiary, ENB Insurance Agency, Inc., has 12 office locations in Erie, Niagara, Cattaraugus and Chautauqua counties.

Third Quarter Performance Highlights:

-- Net income grew by 16.9 percent, or $182 thousand, over the third quarter 2004

-- Average earning assets grew by 15.9 percent, or $57.6 million, in comparison to the third quarter 2004

-- Net loans grew by $8.3 million, or an annualized 13.7 percent in the third quarter 2005

-- Insurance service and fees increased by 31.9 percent, or $0.4 million, in comparison to the third quarter 2004

-- Net interest income grew by 15.7 percent, or $0.5 million, in comparison to the third quarter 2004

'We are pleased with the strong results in our third quarter that are driven from a number of strategic initiatives,' said President & Chief Executive Officer James Tilley. 'The Bank continues to experience strong loan demand which has caused a redeployment of assets into higher-yielding loans. We believe this quarter reflects the continued successful execution of our strategic initiatives.'

Net Income

Net income was $1.3 million or $0.48 per basic and diluted share for the quarter ended September 30, 2005 as compared to $1.1 million or $0.41 per basic and diluted share for the quarter ended September 30, 2004. On a year-to-date basis, net income was $3.7 million or $1.42 per basic and diluted share for the nine months ended September 30, 2005, as compared to $3.3 million or $1.28 per basic and diluted share for the nine months ended September 30, 2004.

All September 30, 2004 share and per share data included in this press release have been adjusted for the five percent stock dividend paid in December 2004, but not for the recently announced five percent stock dividend payable in December 2005.

Financial Position

Total assets at September 30, 2005 were $459.5 million, a decrease of $3.0 million or 0.7 percent in comparison to June 30, 2005.

Total deposits for the quarter decreased 2.0 percent to $354.9 million at September 30, 2005 from $362.0 million at June 30, 2005, due to the seasonally anticipated outflow of municipal deposits. Muni-Vest deposits decreased 14.7 percent or $8.1 million during the quarter, due to the normal outflow of municipal funds which occurs during the second and third quarters of the calendar year, prior to school tax collections in the fourth quarter. The decrease in Muni-Vest deposits was partially offset by growth in demand deposits, which increased 4.0 percent or $2.5 million, from the quarter ended June 30, 2005.

Non-performing loans as a percentage of total loans outstanding were 0.84 percent at September 30, 2005 as compared to 0.73 percent at June 30, 2005. Net charge-offs totaled $55 thousand in the third quarter 2005, as compared to net charge-offs of $202 thousand in the second quarter 2005. The allowance for loan losses totaled $3.3 million, or 1.32 percent of gross loans outstanding, at September 30, 2005, as compared to $3.2 million or 1.30 percent of gross loans outstanding at June 30, 2005.

Loan growth in the third quarter was funded partially with maturities and sales of securities of $7.8 million. At September 30, 2005, total net loans outstanding were $248.7 million, or 54.1 percent of total assets, as compared to $240.5 million or 52.0 percent of total assets at June 30, 2005. Commercial loan growth was bolstered by solid core lending to the Bank's target market, as well as continued success in equipment leasing by the Bank's wholly-owned subsidiary, Evans National Leasing, which was acquired in December 2004 and now accounts for 5.2% of total loans outstanding."

Commercial loan growth was bolstered by solid core lending to the Bank's target market, as well as continued success in equipment leasing by the Bank's wholly-owned subsidiary, Evans National Leasing, which was acquired in December 2004 and now accounts for 5.2% of total loans outstanding.

Operational Results

Net interest income for the three month period ended September 30, 2005 was $3.8 million, an increase of $0.5 million over the same period in 2004, and is primarily a result of growth in interest-earning assets and the Company's entry into the small ticket leasing business through Evans National Leasing.

Equipment Leasing Association's Monthly Leasing Index

noreply@blogger.com (GCR Capital) — Sun, 30 Oct 2005 16:16:00 +0000

ARLINGTON, Va.--(BUSINESS WIRE)--Oct. 31, 2005--The Equipment Leasing Association (ELA) today released the ELA Monthly Leasing Index (MLI), which indicates a significant upturn to end the third quarter. In September, new business volume increased from August's $4.28 billion to $5.06 billion, representing an 18.1 percent increase. This is also the highest reported amount of new business volume for any month this year. Approximately 20 major equipment leasing and finance companies are surveyed on a monthly basis for the MLI.

Noting the strong monthly performance indicated by the September MLI, Ralph Petta, Vice President of Industry Services, stated, 'Despite the hiccup in portfolio quality, the September numbers show a robust leasing business, which is surprisingly strong given the weather events and high energy prices that occurred during the quarter.'

Delinquencies (net of unearned income billed but not yet received) remained virtually unchanged from August, coming in at 97.92 percent. However, this remains below March's high of 98.46 percent. Credit approval ratios increased very slightly to 82 percent compared with 81.7 percent in August. Average charge-offs, however, increased significantly, coming in at 0.69 percent, up from August's 0.43 percent. Petta noted, 'This is due to a couple of outliers resulting from two respondents who reported very significant increases in that statistic for September.'

The total number of employees increased slightly to 9,001 compared to 8,939 in August. Although off from April's high of 9,259, this puts total FTEs back over the 9,000 mark.

The MLI is issued on the 30th of every month(1) and provides trend analysis across all major performance areas of lessors, including new business volume, aging of receivables, average loss, credit approval ratios and number of employees.

Because the same companies participate in the study each month, the MLI provides a fairly reliable and consistent trend analysis of current industry activity. Results of each MLI are posted on the ELA website and in Equipment Leasing Today magazine.

Charts and graphs are available for reprint to members of the accredited media. The illustrations reflect the data provided by those companies responding to that particular question. Typically, not every company polled responds to every question.

In addition to the MLI, ELA provides a variety of data, including customized market analyses, to ELA members and organizations involved in the forecasted $248 billion equipment leasing industry. To access this and other industry information, visit the ELA website at http://www.elaonline.com/IndustryData/ or contact Dean Frutiger at (703) 516-8380.

(1) Should the 30th of the month fall on a non-business day or holiday, the ELA Monthly Leasing Index will be issued on the next business day closest to the 30th."

Two New Healthcare Equipment Leasing Studies Provide Comprehensive Overview and Details of Healthcare Financing Marketplace

noreply@blogger.com (GCR Capital) — Fri, 28 Oct 2005 15:19:00 +0000

ARLINGTON, Va.--(BUSINESS WIRE)--Oct. 28, 2005--

$15 Billion In New Business Projected Over Next Two Years As Healthcare Equipment Sales in IT Systems, Outpatient Care Grow

Two new studies were released today which provide complementary macroeconomic overview and market-specific details for use by the equipment leasing industry. The Equipment Leasing Association (ELA), the non-profit association representing companies involved in the forecasted $248 billion equipment leasing and finance industry, and R.S. Carmichael & Co., Inc., a marketing research and management consulting firm, White Plains, New York, have released a new report, Healthcare Equipment Leasing: U.S. Market Dynamics and Outlook 2005-2006. The Equipment Leasing and Finance Foundation, a non-profit organization dedicated to enhancing recognition and understanding of equipment lease financing, released its study researched by the University of Virginia Darden School, Long-Term Trends In Healthcare: Implications for the Leasing Industry. Together, The Healthcare Financing Compendium provides the most comprehensive information currently available on the dynamic healthcare market and its implications for the equipment leasing and finance industry.

'These two studies provide thorough insights into the drivers of healthcare equipment leasing,' said Ralph Petta, Vice President of Industry Services for the Equipment Leasing Association. 'This is a tremendous resource for organizations in healthcare and equipment leasing to understand how the healthcare marketplace is financed and why.'

The ELA/Carmichael market study focuses on the leasing practices of healthcare providers, including hospitals, outpatient centers and physicians' offices. It also examines the market from the standpoint of healthcare equipment vendors and lease financing competitors.

Highlights from the report include:

-- The estimated size of the U.S. healthcare equipment leasing market in 2005 is at least $7.0 billion in terms of new volume.

-- The healthcare equipment leasing market is projected to exceed $8 billion in volume by 2007, attributable mainly to forecasted equipment sales growth (as opposed to significant gains in lease penetration).

-- Over the past five years the average annual rate of lease financing market growth in healthcare has been seven percent.

-- Healthcare equipment leasing is primarily a 'middle-market' business, with most transactions in the $250,000 to $5 million range.

-- The hospital market represents a growth market for IT systems (e.g., digital radiology systems that store, retrieve, distribute and display medical images in digital format).

-- The outpatient care market, especially the ambulatory surgery center segment, also continues to grow as a market for lease financing.

-- When investment in all healthcare equipment is considered, lease financing penetration is relatively low and appears to be stabilizing due, in part, to reimbursement reductions, regulations affecting physician referrals, and a lack of awareness of leasing as a tool for equipment acquisitions. However, the upside potential remains substantial although leasing companies will continue to see challenges in realizing the potential opportunities.

'Equipment leasing continues to represent a fundamental source of capital financing for healthcare providers,' said Richard S. Carmichael, Managing Director of R.S. Carmichael & Co., Inc., which conducted the study. 'Healthcare industry conditions such as steady growth, capital budget constraints and rapid technological changes create opportunities for equipment leasing to make greater inroads.'

The Equipment Leasing and Finance Foundation report features an overview of healthcare industry trends, a statistical analysis of leasing transactions and implications for leasing and finance organizations.

Among the study findings:

-- The healthcare industry in 2004 represented a $1.8 trillion annual market that accounted for 15.4 percent of total gross domestic product (GDP).

-- Healthcare's share of GDP is expected to continue to increase every year to 2014 as healthcare expenditures growth are expected to outpace GDP growth.

-- Small, professional firms are the most significant business form in the healthcare sector, followed by not-for profit organizations.

-- The critical element in improving the productivity of the healthcare industry and reducing its cost growth is capital investment in productivity improving technology that will substitute capital for labor.

'Knowledge of both historical and future trends in the healthcare industry is key to participating in this marketplace,' said Lisa Levine, Executive Director of the Foundation. 'The Foundation study on long-term healthcare trends provides those and other critical perspectives on the healthcare industry.'"

Strengthening Leasing Finance in Slovenia

noreply@blogger.com (GCR Capital) — Fri, 21 Oct 2005 19:13:00 +0000

Slovenia Oct. 21 2005
Press Release - European Bank for Reconstruction and Development

The EBRD is extending a €5 million loan to Bank Austria Creditanstalt Leasing d.o.o. (BACA Leasing), a leasing company operating in Slovenia and owned by Bank Austria Creditanstalt AG. The financing, which comes under the leasing window of the EU/EBRD SME Finance Facility, will be used exclusively for leases to micro- and small-enterprises not exceeding €125,000. The loan will be complemented with €700,000 from the European Commission for staff training and institution building.

The Slovenian leasing market is particularly competitive with the ten largest companies accounting for almost 90 per cent of the total new leasing volume in previous years. BACA Leasing has been gaining a strong market presence in equipment leasing and covers leasing in a wide area from manufacturing and services to trading. The company also sees strong potential in the real-estate market.

Francois Lecavalier, Head of the EBRD’s Slovenia office, said the loan will help further facilitate the financing of Slovenian small and medium-sized enterprises, the growth of which is key for the successful development of the country’s economy. Widening its costumer base among this segment will allow BACA Leasing to grow its leasing volume and strengthen its market position.

Alfred Taul and Boris Bobek, Managing Directors of BACA Leasing, said the loan was an opportunity to further boost Bank Austria Leasing’s support for SMEs in Slovenia, which represent the most progressive and fast growing business segment and the backbone of the country’s economy. Bank Austria Group has a very good track record in financing SME’s and wants to further strengthen its involvement in this sector in Slovenia.

The EU/EBRD SME Finance Facility, a joint programme of the European Commission and the EBRD, supports the development and growth of entrepreneurs by facilitating their access to finance. The Bank will make available funding of €1.1 billion, of which €830 million has been committed to signed projects. The EC has been contributing €156.75 million in grant financing and for technical assistance since the launch of the programme in 1999."

Computerworld Singapore - Cisco bets a billion dollars on India

noreply@blogger.com (GCR Capital) — Sat, 08 Oct 2005 18:29:00 +0000

By Phil Hochmuth, Network World (US online)
Updated: Oct 21, 2005 10:28 AM

Cisco has said it will invest US$1.1 billion in India over the next several years, with new projects in R&D, venture capital, equipment financing, and customer support targeted for the world’s second-largest country.

Cisco has said it will invest US$1.1 billion in India over the next several years, with new projects in R&D, venture capital, equipment financing, and customer support targeted for the world’s second-largest country.

Cisco Chief Executive Officer John Chambers said the move is to address the rapidly growing economy and IT needs of India. “India has rapidly risen to become a major force in the global economy. As Indian companies strive to be globally competitive, they have realised the importance of investing in information technology and networking.”

According to the World Bank, India’s IT sector accounted for approximately 4 per cent of its GDP between 2003 and 2004, with almost a million employed in the sector. More than 100 multinational corporations have set up R&D centres in India.

Cisco will invest $750 million for R&D activities, including training and development of engineering staff, as well as partnerships with local companies in R&D. (This equals about a quarter of Cisco’s estimated total R&D budget of $3 billion in 2004). Cisco’s financing arm, Cisco Systems Capital, will invest $150 million to support product leasing and financing for customers in India. Meanwhile, $100 million will be invested in venture capital for India-based start-ups and investments in customer support. Another $100 million will go to support investments, including channel partner and technical services areas."