inside this issue:ComplianCe issues in the equipment FinanCe industry
three Ways your organization Can be more suCCessFul selling Working Capital
From the Front lines
newslineNational Equipment Finance Association
may/June 2014Vol. 6, no. 3
Funding issue
2 neWsline | MAY/JUNE 2014
NEFA HEAdquArtErsP.O. Box 69Northbrook, IL 60065-0069847-380-5050 main847-380-5055 [email protected]
ExEcutiVE dirEctorGerry [email protected]
sENior AssociAtioN coordiNAtorKim [email protected]
NEwsliNE EditorChelsea [email protected]
AdVErtisiNg sAlEsLisa [email protected]
dEsigN & ProductioNR&W Publishing Associates3534 Caley RoadNewtown Square, PA [email protected]
NEFA Newsline ©2014 is published by the National Equipment Finance Association. All rights reserved. All opinions expressed in the articles, analysis, interpretations, etc. within this publication are solely those of the individual. For editorial information, please contact Chelsea Kirtley at 727-450-9870.
newsline
contentsmAy/JuNE 2014 • Vol. 6, No. 3
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15
7 comPliANcE issuEs iN tHE EquiPmENt FiNANcE iNdustry By Mike Coon, with additional comments by John Rosenlund, CLP
11 tHrEE wAys your orgANizAtioN cAN bE morE succEssFul sElliNg workiNg cAPitAl By Andrew Mallinger
15 From tHE FroNt liNEs By Steve Crane, with additional comments by Bruce Smith, CLP
departments
19 Family line our JourNEy to sErVicE By Anna-mary Geist
21 NEFA tidbits
23 member line moE AbusAAd
neWsline | MAY/JUNE 2014 3
exeCutive Committee
PrEsidENt kylE gilliAm, clPARvESt EqUIPMENt FINANCE
VicE PrEsidENt tArA AAsANd LEASEtEAM, INC.
trEAsurEr dAVid NormANdiN, clPBANC OF CALIFORNIA
sEcrEtAry gAry souVErEiN PAWNEE LEASING CORPORAtION
immEdiAtE PAst-PrEsidENt JoHN rosENluNd, clP PORtFOLIO FINANCIAL SERvICING COMPANY
board oF direCtors
mikE cooN LCA FINANCIAL, INC.
dENNis drEsslEr DRESSLER & PEtERS, LLC
ANNA-mAry gEist tAxWARE
stEPHANiE HAll BRYN MAWR FUNDING
doug HoulAHAN, clPMAxIM COMMERCIAL CAPItAL, LLC
mArc kEEPmAN KLC FINANCIAL, INC.
Jim mErrilEEs, clP tIP CAPItAL
grEgory NAPPi DDI LEASING, INC.
brucE smitH, clP DIvERSIFIED CAPItAL CREDIt CORPORAtION
diANE williAms BANKERS LEASING COMPANY
neFa 2014 board oF direCtors
National Equipment Finance Association
lEttEr
From NEFA’s President
neFa offers a great array of opportunities to make personal connections in our business and to make a difference in our industry as a whole.
Just looking online at our calendar of events (also listed else-where in this magazine) you’ll find everything from a full-scale conference and trade show, to multiple ILP course offerings around the country, to baseball games, luncheons, a cookout on a farm outside Chicago, and a sales meeting followed by a dinner cruise on beautiful Lake Minnetonka.
For all the efficiencies and conveniences of our computer-connected world, nothing has come along yet that truly replaces the effectiveness of strong personal relation-ships. Electronic connections can strengthen and leverage those relationships, for sure, but they can’t fully create or replace them.
That’s what makes NEFA Membership so valuable. That value isn’t realized auto-matically, though; it’s the result of participation, and that goes beyond mere mem-bership. Participation, whether it’s sitting beside someone during a class or luncheon or working with other organizers planning one of our events, is what defines shared interests and experiences. Those are the actual building blocks of effective profes-sional relationships. It’s those shared interests and personal experiences which give electronic connections their real power by allowing the most valuable ones to stand out from the clutter of numbers.
You can raise the value of your NEFA Membership anytime, just by increasing your involvement. NEFA has more in-person events this year than at any time in its history. Each and every one of them can be uniquely valuable to the people that attend them. Equally valuable are the bonds that develop among the volunteers who work together planning and hosting those events. Those volunteers also shape the future of their whole industry by creating the environments where discussions, debates, and decisions take root, any one of which may blossom and have impact for many years to come.
In addition, NEFA’s new and continually developing website offers all the online tools you need to continue, solidify, and build on your most valuable personal busi-ness relationships. Through your company and personal profiles, you can deliver and update information about what you do or what you need. Through NEFA Forums or Blogs, you can inform, question, and debate issues you think are significant. Through personal pages, photo galleries, and links, you can share your personal interests and activities. Participating online gives people you’ve never met the feeling they already know you and makes them want to seek you out when you do get to a NEFA event. That’s how industry leaders are created: naturally, organically.
People often ask, what’s the benefit of membership in NEFA? The simple answer is, you are. Each and every one of us is a benefit to someone else, and someone else is a benefit to us. All we have to do is stay active and participate in order to make the right connections. Today, NEFA has more ways than ever before for everyone to do that. Be sure you take advantage of all NEFA has to offer. Look at the calendar and find something you can do. Call the office and ask to help in some way. Keep your dues renewed. Stay current and stay connected.
I look forward to seeing each one of you at one or more of our upcoming events!
Safe travels,
Kyle W. Gilliam, CLPPresident/CEO
Arvest Equipment Finance
kyle W. gilliam, ClpPresident/CEOArvest Equipment Finance
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lEttEr
From NEFA’s Executive director
teamwork.I’ve thought a lot about teamwork lately. There are a lot of reasons; take a look at NEFA’s calendar of events for this year, and you’ll understand one of them. 2014 has more events on the NEFA calendar than we’ve ever had before. That’s a wonderful thing, and every one of those events are volunteer and team driven.
We’re all involved in team activities, and I’m talking about much more than sports teams we may play on. Families are teams; business are teams; churches are teams; clubs, classes, and communities are all teams. Any activity where multiple participants move towards one or more common goals are team activities. Many of us are involved in multiple teams. In addi-tion to some of those already mentioned, I’m involved with a condominium board, a bank planning group, a couple of online groups, various industry associations and groups and, of course, the teams I work with for NEFA, including the Board of Directors, the Executive Committee, conference planning teams, and all the volunteer teams that put all those wonder-
ful events on NEFA’s calendar this year. You may be involved in even more than that!
Another reason this topic is on my mind is that I recently heard my good friend Ted Reynolds, of (appropriately named) TEAM Funding Solutions, speak about growing and running a business. Those of you who know Ted will automatically know that it was a great talk, and those of you who’ve never had the opportunity to pick Ted’s brain about personal and team motivation should seek out opportunities to do so. He talked about some of the practical aspects of building effective teams and recommend-ed some materials which I immediately sought out to read for myself.
So, what does make for a good team and team member? Why is NEFA doing so well, and why are so many members working so hard ─and so successfully─ on teams to create so many wonderful events this year? How are we able to turn so many different ideas and so much input from so many different people into actualized events that so many other people can enjoy?
I’m just a student of teamwork and leadership—I’m certainly not an expert—but I’m going to share three observations I’ve gleaned about it from working with some incredibly smart and creative NEFA members. I hope you have ideas about this you can add, and I hope you will participate in this discussion and share them with us. On our website, under the Community icon at the top, you’ll find a link to forums where you can share your own thoughts or seek input from others. This would make a great ongoing topic; please consider this column just a dialogue starter, not a final word, by any means. So here are the three main qualities of good team members that I’ve observed.
The first is they’re willing to put ideas in. That may seem blindingly obvious, but the fact is, not everyone is willing. Many people are very proprietary about any ideas they have; they fear that by sharing them, they risk putting themselves at a disadvantage somehow. This is particularly a risk in teams made up of people from different businesses or organizations. Good team players, though, simply don’t think that way. They know that most ideas don’t even become valuable until, and unless, they’re forged in a crucible of other ideas, viewpoints, challenges and add-ons. Good team members throw all of their ideas into the team pot, with the hope and expectation that they can be made better. They don’t hold out or hold back so that they can be the one with the best idea, the ‘winning’ idea.
Secondly, and flowing directly from the above, good team players respect the input of others. Perhaps, the biggest part of that is not criticizing or prematurely judging the ideas of others. Nothing cuts off the flow of effective team action as quickly as a team member who hesitates to contribute because another team member ridicules their raw input. At the team brainstorming stage, there are no bad ideas, but there are ideas that never come to light and get developed because bad team players block them. In his talk, Ted Reynolds described a brainstorming process where the phrase “yes, but” is actually forbidden and only the phrase “yes, and” is allowed. This results in ideas growing and improving without being needlessly killed off early or never even getting considered and worked on.
Finally, good team players are able to let go. They’re able to let go of their ego and their ownership. Ultimately, for team efforts to produce results, ideas have to be turned into executable plans and action. That generally requires some management action that can meld the team’s vision and ideas with the capabilities and resources available at any given time, and modify and adapt them as conditions change. Good team members take pride in their role and in the success of the team, as a team, whether or not it was their particular ideas that got used or their own personal performance that was highlighted in execution. They generously give their ideas, their efforts, and their trust to those who will ultimately have to execute on the team’s behalf.
gerry eganExecutive Director
Continued on page 22
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industry neWs
lEAsEtEAm’s AsPirE™ cHosEN by tiP cAPitAlTIP Capital has selected LeaseTeam’s single system end-to-end lease and loan management solution because of its flexibility and LeaseTeam’s expertise in both middle-market, asset-based high technology and small ticket vendor driven business.
bostoN FiNANciAl closEs EquiPmENt trANsActioNBoston Financial & Equity closed an equipment lease transaction for a 3D printing company located in South Carolina. The trans-action included leasing the company a 3D printer.
PAwNEE lEAsiNg gENErAtEs rEcord EArNiNgsChesswood Group announced the company’s pre-tax income for the year ended December 31, 2013 was a record $19.7 mil-lion compared to $16.6 million in 2012, an increase of 19%. Chesswood paid dividends of $8.1 million in 2013, compared to $7.2 million in 2012.
AscENtium cAPitAl closEs $200mm sEcuritizAtioN; rEPorts 35% iNcrEAsE iN q1 VolumEMoody’s Investors Service and DBRS issued the highest possible ratings, Aaa and AAA respectively, on Ascentium Capital’s senior class of notes in its second securitization. The underwriters of the transaction were Bank of America, Credit Suisse and JPMorgan Chase Bank.The triple-A ratings significantly lower the cost at which the organization borrows funds enabling Ascentium Capital to become even more competitive. Ascentium Capital announced strong growth during the first quarter of 2014, with a 35% increase in volume over the last year. With assets near $500 million, a 57% increase was also achieved. Ascentium Capital is ranked as the fifth-largest private-independent finance company by volume in the U.S. by Monitor magazine.
tAb bANk’s rEcENt dEAlsTAB Bank provided a $3 million credit facility for a manufac-turing company located in California. TAB Bank provided $12 million in trucking equipment loans for 17 transportation com-panies during Q1/14.
sigNAturE bANk Adds PriVAtE cliENt bANkiNg tEAmsSignature Bank announced two private client banking teams have joined, increasing the total number of teams in its network to 94. Both teams will be based out of the bank’s Forest Hills, Queens, NY office when it opens later this year. Tamara Gavrielof was named group director and senior vice president. Gavrielof previ-ously served as Cluster Branch Manager-vice president at HSBC. Ilya Weisbord was concurrently named group director and senior vice president. Weisbord previously served at JPMorgan Chase, where he most recently served as relationship manager.
FlEEt FiNANciNg FuNds $2.1mm For Nm scHool bus oPErAtorFleet Financing Resources completed $2.1 million of financing for Herrera Coaches. The financing was for 25 full-size conven-tional 2015 Bluebird school buses. Herrera Coaches is one of the largest school bus operators in New Mexico.
members on the moveNational Equipment Finance Association
National Equipment Finance Association
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mEridAN goEs liVE witH odEssA’s lEAsEwAVEMeridian Leasing, one of the largest independent lessors in the IT industry, has gone live with LeaseWave, the lease management suite provided by Odessa Technologies. The Meridian install of LeaseWave represents significant enhance-ments made to user experience for both front and back office personnel.
HitAcHi cAPitAl AmEricA mourNs loss oF cHris cookChristopher L. Cook, Vice President & General Manager of the Indirect Finance Business at Hitachi Capital America passed away April 14, 2014, after fight-ing a courageous battle with cancer. He had just celebrated his 48th birthday. He was a 17-year employee of HCA, having spent his 26-year career in the equipment finance & leasing business.Christopher leaves a wife, Camila, and a 3-year old daughter, Kirsten.
clP FouNdAtioN ANNouNcEs NEwEst clPThe Board of Directors of the Certified Lease Professional (CLP) Foundation announced that Chad Oleson, president at Better Programs, passed the CLP exam. The CLP designation identifies an indi-vidual as a knowledgeable professional to employers, clients, customers, and peers in the equipment finance industry. There are currently 201 certified lease professionals throughout the world.
grEAtAmEricA, collAbrANcE Hold NAVigAtor it trAiNiNg sEssioNGreatAmerica Financial Services and Collabrance will hold their 7th Navigator for Managed IT Services business planning session on July 22 and 23, 2014 in Cedar Rapids, Iowa. The session is for office equipment and telecommunication dealers, independent VARs, and Managed Service Providers (MSPs) who are building Managed IT Services into their business model.
mergers and aCquisitions
HitAcHi comPlEtEs AcquisitioN oF clE cANAdiAN lEAsiNgHitachi Capital Canada, a 100% owned subsidiary of Hitachi Capital America, announced it closed its share purchase agreement to acquire 100% of the shares of CLE Canadian Leasing Enterprise (CLE). CLE will add assets of $198.4 mil-lion and annual originations of $129.6 million to Hitachi Capital Canada.
grEAt AmEricAN grouP ANd b. rilEy & co. ANNouNcE mErgErGreat American Group, a provider of asset disposition, valuation and appraisal services, and B. Riley & Co. (BRC), an independent investment bank, entered into a definitive agreement under which Great American Group and BRC will combine in a stock-for-stock transac-tion, creating an investment banking and financial services firm. The terms of the agreement provide for the issuance of an estimated aggregate of 4.2 million shares of Great American Group common stock in exchange for 100% of the stock of B. Riley & Co. and affiliates.
personnel announCements
colliNs JoiNs orioN First FiNANciAl As sVP/bdoJoe Collins, formerly an account execu-tive with International Decision Systems, joined Orion First Financial as senior vice president, business development officer. Collins is a 25-year veteran of the equip-ment finance industry.
mAdisoN cAPitAl NAmEs JANus VP oF busiNEss dEVEloPmENtJanus’ areas of responsibility include busi-ness development and originations. Janus brings more than 25 years of experience in the financial services industry.
lEAsEtEAm wElcomEs NEw AccouNt mANAgErTara Aasand brings 11 years of industry experience and a passion for customer ser-vice to her new position, where she will be managing existing account relation-ships, including creating and maintaining account strategies, product/program sup-port and recommendations for new prod-ucts and services based on account growth plans and business needs.
tiP cAPitAl Adds VP, NAtioNAl AccouNts to sPEciAlty mArkEtsTIP Capital hired Michael Larson as vice president of National Accounts for the Specialty Markets Group, which works with equipment manufacturers, vendors and dealers nationwide to develop turn-key financing solutions for their products. Larson comes to TIP Capital with more than 20 years of experience in sales in the leasing industry.
diVErsiFiEd HirEs NEw EquiPmENt lEAsiNg VP; busiNEss dEVEloPmENt oFFicErDiversified Lenders hired Brady Campbell as vice president of equipment leasing. Brady will be responsible for equipment finance, equipment leasing and munici-pal finance transactions. Diversified Transportation Finance hired Michelle Duran as business development officer out of Salt Lake City, UT. Michelle will con-centrate on working with trucking compa-nies with fewer than 100 units to provide working capital and equipment finance.
sigNAturE FiNANciAl briNgs totAl NumbEr oF sAlEs ExEcutiVEs to 20 NAtioNwidESignature Financial announced the appointment of two sales professionals.
Meredith Berger was appointed execu-tive sales officer, based in Signature Financial’s corporate office in Melville, Long Island, NY. Berger brings 34 years of specialty finance experience to her new position. Stephanie Paysse was also named executive sales officer, and will be based in Coral Gables, FL. With nearly eight years of industry-related experience, Paysse’s career has primarily been focused on transportation financing.
tEtrA FiNANciAl NAmEs dirEctor, crEdit/syNdicAtioN; dirEctor, iNtErmEdiAry FuNdiNg diVisioNTetra Financial named Joseph Eschler as director of credit and syndication. He is based out of the company’s Salt Lake City, UT, headquarters. As director of credit and syndication, Joe will be respon-sible for the company’s underwriting and portfolio analytics, and will serve as the company’s primary relationship manager with its strategic funding partners.
Tetra Financial expanded its intermediary funding division to address the demand for its third-party funding services. As part of the expansion, the company has named Rick Roberts as director of inter-mediary funding. Roberts is based out of the company’s Salt Lake City, Utah headquarters. As director of intermedi-ary funding, he will be responsible for an additional section of the company’s intermediary funding desk, reviewing and handling equipment leasing transactions brought to the company by third parties for financing. •
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regulatory environment
The heightened attention to regu-latory compliance has caused lenders to add to their compli-ance staff, increase education,
awareness, and training, as well as imple-ment new policies and procedures. All of these actions affect their customers, employees, and vendor relationships.
One of the highly attentive areas for regu-lators has to do with a bank’s third party relationships, defined as any business arrangement between a bank and an out-side entity, by contract or otherwise. This directly affects the lease originator, which is the focus of this article.
• Everyone is affected by increased regula-tion and has a role in compliance.
• Compliance is no fun, but it’s the way of our world today. Comply or die.
• Get educated and understand the rules.
• Help your lenders with their compliance requirements, and your relationships will improve.
Who is affected Clearly, FDIC insured banks are most commonly thought of in terms of regulated
entities, but which other industry partici-pants are under the scrutiny of regulators or the effects of increased compliance? We often hear that the leasing industry is “unregulated” or that since brokers/les-sors are not regulated entities, that they are free from any compliance responsibili-ties. Unfortunately, this is simply untrue. Compliance procedures are currently being pushed out to the originators, port-folio servicers, and collection agencies that are involved in the leasing business; and the impending Dodd-Frank Wall Street Reform and Consumer Protection Act has far reaching data-reporting and procedural impact on leasing companies that access the securitization market as their source of funding.
Compliance issues related to third partiesIf you do not have risk-compliance exper-tise on staff, you will need to determine the levels and types of issues that expose your company to liability. These can range from simple credit decline notifi-cations, to types of licensing required, to monitoring consumer complaints. There is no financial services company that is immune or “under the radar” anymore. Transparency and documentation are
the new paradigms in this environment. Though we could list others, the following are high level risk-compliance topics you should review:
• due diligence: know your customer.
You should consider internal and external sources.
• third Party (Vendor) risk Analysis, based on the level of relationship (ser-vicing, etc.): Do you have the resources to ensure all phases of operations from sourcing of business to managing the port-folio are timely, accurate, and properly documented? Can you satisfy all lending, reporting and regulatory requirements?
• ongoing monitoring and management: Will your current systems allow you to proactively manage, forecast and provide all the necessary reporting for regulatory, tax and legal compliance items?
The processing of a person’s individual credit and how it is reported, or how noti-fication is given if adverse action is tak-en, represent two of the most important cornerstones in the financing industries. However, they represent a significant number of the complaints and litigation filed by regulatory agencies against financ-ing and leasing companies.
the post-financial crisis regulatory environment has significantly changed the world of commercial lending. Not all increased compliance is a bad thing, as attention has been drawn to areas of significant risk that were overlooked or simply ignored.
by mikE cooN, witH AdditioNAl commENts by JoHN rosENluNd, clP
Compliance issues in the equipment Finance industry
FuNdiNg issuE
8 neWsline | MAY/JUNE 2014
year), the statement may be given orally, but must include the same content as the written statement.
applications submitted through a third party (broker):When an application is submitted to more than one creditor and no credit is offered, each creditor taking adverse action must comply with notification requirements, either directly or through a third party.
A notice given by a third party must dis-close the identity of each creditor on whose behalf the notice is given and the reason(s) why each creditor declined the application.
If credit is offered by one of the creditors and accepted by the applicant, no notifica-tion is required.
the effect of regulation on third parties: general Comments• Compliance is a must—there are clearly no short cuts or shifting of responsibility.
• Compliance requirements may differ from lender to lender based on:
• Asset Size of the Bank
• Region: Regulators across the US can often be inconsistent in interpreta-tion and enforcement of regulations.
• Type of Bank: Community Bank, Regional Bank, National Bank, and Industrial Loan Bank
• Banks vs. Securitizers
• Whether leasing company is a sub-sidiary of a bank
• Internal attention and diligence of compliance
• Brokers and Lessors that assist and cooperate with their lenders on compli-ance-related issues will be in high demand and receive priority attention from their lenders. Inversely, Brokers/Lessors that ignore compliance or cause compliance-related problems for their lenders will be weeded out.
• Shared attention to compliance results in improved customer relationships, decision turnaround time, and lower pricing.
If it wasn’t clear before, we hope it is now, that anybody who sources, processes, originates and services any portfolio must be cognizant and understand what regula-tory, legal and financial compliance issues may impact them. It is then necessary to ensure there are adequate processes and procedures internally to identify, rectify,
Credit bureau reportsDo you always get a signed application prior to pulling credit on the owner(s) of a potential lessee’s business? The Federal Trade Commission has issued a legal opinion as to whether a vendor (broker) extending commercial credit must obtain written consent from the consumer prior to pulling a consumer credit report for business purposes or for a personal guar-antee of business credit. The FTC states in its legal opinion that a vendor must obtain the consumer’s consent prior to pulling a consumer credit report, even for a legiti-mate business purpose. The provisions of the Fair Credit Reporting Act (FCRA) permit a consumer to bring civil suit for willful noncompliance with the FCRA with no ceiling on punitive damages. The consumer may sue for negligent noncom-pliance and for actual damages sustained. The consumer may also seek to recover the consumer’s attorneys’ fees. In addition, criminal penalties may also be assessed, including fines and imprisonment against any person who knowingly and willfully obtains a consumer report under false pretenses. Get the authorization.
equal Credit opportunity act (eCoa)As part of the Equal Credit Opportunity Act (ECOA), a creditor (defined as credi-tor’s assignee, transferee, or subrogee or someone who regularly refers applicants or prospective applicants to creditors—a broker) must notify an applicant of action taken on the applicant’s request for credit, whether favorable or adverse, within 30 days after receiving a completed applica-tion. Notification of adverse action taken on an existing account must contain cer-tain information, including the name and address of the creditor, and the nature of the action that was taken. In addition, the creditor must provide an ECOA notice that includes:
• A statement of action taken
• Name and address of creditor
• Statement of provisions of Section 701(a) of the Act (“ECOA Notice”)
• Name and address of federal agency that administers compliance with respect to the creditor, and either
• A statement of specific reasons for action, or
• A disclosure of the applicant’s right to a statement of specific reasons within 30 days
• For small business credit (gross revenues of $1 million or less in the preceding fiscal
8 neWsline | MAY/JUNE 2014
About tHE AutHor
mike Coon is a 25 year veteran of equipment finance, beginning his career with First Michigan Bank (FMB). Mike co-founded Enterprise Funding Group, eventually growing it to a Monitor 100 leasing
company, and later developed a leasing division for tAB Bank. Mike is vice President at LCA Financial, a wholesale funding division of the LCA Group. He has worked in most areas of the industry, including credit, collections, marketing, and funding. Mike is very committed to the equipment finance industry, actively participating in the leasing industry associations. Mike was Chairman of the 2009 NAELB Annual Conference, a Panelist on the 2009 Monitor Magazine Funding Source Round table, and is a member of the National Equipment Finance Association’s Board of Directors. He is a graduate of Central Michigan University and resides in Rockford, MI. Mike can be reached by phone at 248-743-5152 or email at [email protected].
and report to the lenders, banks, and reg-ulatory agencies who will audit to ensure compliance.
Knowledge is power, so understand which of the many regulations impact you, and if not properly complied with, may open you to financial exposure and regulatory oversight. •
Comply or pay: Why it pays to Comply With the eCoaby AlEksANdEr PowiEtrzyNski ANd JAy wiNstoN, wiNstoN & wiNstoN, P.c.
Creditors must comply strictly with the requirements of the Equal Credit Opportunity Act (“ECOA”). Under the ECOA’s broad definition of “creditor”, various parties which are not commonly considered creditors may be covered. A creditor’s failure to comply strictly with the ECOA (or timely cure any defects) may subject the creditor to liability in an action for actual damages plus punitive dam-ages of up to $10,000. In a class, the punitive damage liability increases to $500,000 (or 1% of the creditor’s net
neWsline | MAY/JUNE 2014 9
About tHE AutHors
Winston & Winston, p.C. is a Madison Avenue firm that practices in New York, New Jersey and Connecticut. the firmmanages cases nationally and can help you handle isolated cases through the Winston Attorney Management Network (WAMN) [over 70 firms]. the firm regularly handles bankruptcy
matters and matters involving the recovery of your collateral. We can help you obtain a pre-judgment order for possession, obtain a tRO or appoint a receiver if necessary. Our firm drafts transactional documents for our clients as well including agreements, releases, loan documents and other frequently required documents.
worth). Creditors may be subject to ECOA’s class liability because most origination violations are procedural. The creditor may also be responsible for an aggrieved party’s attorney’s fees and court costs. The aggrieved party’s attorney’s fees and court costs can be in the five or six fig-ure range (or higher in a class action). The attorney’s fees can be higher than the actual and punitive damages com-bined. Courts may also invalidate the underlying obliga-tion entirely. On large transactions, the invalidation of the underlying obligation can result in the greatest loss to the creditor. Finally, violations of the ECOA may trigger other state (unfair and deceptive practices statutes, state anti-discrimination statutes, etc.) and federal (FCRA, FACTA FDCPA, TILA, FHA, etc.) violations, thereby increasing the creditors’ liability.
Pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (“Dodd-Frank Act”), the Consumer Financial Protection Bureau (“CFPB”) took over authority regarding the ECOA from the Federal Reserve Board. The CFPB has suggested that it will aggres-sively assert their authority to make, implement, and enforce compliance with the rules and regulations under the ECOA.
Compliance with the ECOA is not complicated, even with the ECOA’s strict requirements. The ECOA has a two year statute of limitations, which primarily affects violations during the origination process. Certain violations may be raised well after what a creditor may consider to be the passage of the two year statute of limitations. For exam-ple, many creditors do not realize that obtaining a spousal guaranty without relying on the spouse’s credit may result in a violation, triggering liability for the creditor. The spouse’s damages include actual damages, punitive dam-ages, both parties’ attorney’s fees and the invalidation of the underlying claims. Such a claim may be raised at any time the creditor seeks to enforce a defaulted debt. The CFPB’s June 2013 ECOA bulletin paid particular atten-tion to this issue.
The creditor may consider any information, as long as the use of the information does not show either a discrimina-tory effect or intent on a prohibited basis. This sidebar will not address the specific requirements of the ECOA. Creditors must be—or become—aware of the ECOA and compliant with its strict requirements. The ECOA may be triggered as early as a creditor advertising offers of credit. The origination process, and any adverse actions taken, fall under the ECOA. Liability under the ECOA may con-tinue to run until the extension of credit has been fully repaid. Consult with a qualified attorney to ensure that you comply with this and all the other strict requirements of the ECOA.
DISCLAIMERThis article is not intended to be a substitute for consulta-tion with an attorney. No attempt has been made here to review, include, or comment upon all the relevant laws and statutes. Most of the general statements presented are representative of the laws in the majority of the states, but some states have passed laws that modify or change the legal consequences of the general statement. Exceptions
exist to every general statement. Therefore, a general state-ment should not be used to fit a particular set of circumstanc-es until after a thorough examination of the facts and laws, plus a review of the decisions of the courts of the appropriate state. Laws and statutes are continually amended, revised, and repealed, and court decisions may be reversed or ren-dered obsolete by more recent decisions or decisions of high-er courts. It is recommended that a review of all the state laws and federal laws as well as the court decisions of the federal courts and the state courts should be done before any decision is made with regard to any legal problem involved with the credit or collection effort, and consultation with an attorney is always recommended before proceeding. •
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I want to run through the three main concerns of offering a working capital product and shed some light on how leasing brokers and lenders are addressing these concerns.
by ANdrEw mAlliNgEr
three ways your organization can be more successful selling working capital
FiNANcE issuE
As lenders and brokers, both large and small, continue to grow and become busier post-2008, we are all focused on finding an edge. An edge can come in many forms: lower rates, longer terms, better service, faster processes or expanded product offerings. By expanding your product offering, you can
earn more business from your current and potential customer base, which, in turn, allows you to provide a better and more robust service. As a working capital provider involved in the equipment leasing space, we’ve seen our product rapidly expand within leasing circles on the broker and lender level. Working capital is a value add that has crossover within your marketing and acquisition efforts and shouldn’t be overlooked as you continue your growth strategies.
Offering a new product presents unique challenges. You have your core product(s), so how do you expand your team’s knowledge to make sure they are not passing up on these opportunities? Is it worth it to make an investment and hire someone to spearhead a new department? What value does this product add to me and my organization? These are all val-id concerns and questions, but there are answers for each. I want to run through the three main concerns of offering a
working capital product and shed some
light on how leasing brokers and lenders
are addressing these concerns.
We can start with: what value does this
product add to me and my organization?
‘I’m already doing fine, and we’re hitting
our funding goals every month, so why
do I need to allocate time and resourc-
es to another product I’ve only heard
about?’ The answer to this is simple: you
can’t afford not to. There are too many
synergies and opportunities within the working capital space that your company is passing up on a daily basis. Working capital and leasing companies provide ser-vices to the same industries, with the same needs, and your opportunity is being able to provide a solution for more than one need that a potential client may have. You can dictate how much time and money you invest into the working capital space. Lenders in our industry are making it easier than ever to create a new revenue stream by offering working capital based on as much time, money, and effort as you decide to put into it.
Being an equipment lender/broker, you have already poured countless hours into training your staff, marketing to the right customers, and you work every day to make sure that your organization is focused on hitting their goals. Is there even enough time in the day to train, re-train, and manage your employees so that they don’t lose focus on your core product? The answer is yes, but there are different ways that an organization can approach it. With most equipment leasing lenders having hard credit declines, and the need for collateral to close a transac-tion, there are plenty of opportunities and too much money being left on the table when a deal is declined. The luxury about offering working capital is that there isn’t much more that you need to do to turn a lead from a leasing candidate to a work-ing capital candidate, even in a decline scenario. Most working capital providers have such large credit boxes, that looking for clients that would qualify is as easy as knowing the minimum requirements of your working capital lender. Since the client profiles are so similar, you can eas-ily train your staff to identify a working capital lead that you will have the oppor-tunity to refer out or fund. Once you’ve created the lead, you now have two options to monetize it. If your sales team can’t spend the time to directly fund these leads, plenty of lenders have direct sales channels that can nurture and fund your leads simply by having you send a refer-ral with an email, name and phone num-ber. The second option is taking a more hands on approach. Most working capital providers have sophisticated technology platforms that make it very easy to input a lead, the documents, and communicate
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with the lender without making it a full-time job.
After you solve how to stop saying ‘no’ to your leads and you become inundated with working capital opportunities, the question now becomes, do I hire someone to make sure that these leads are being properly handled? This is obviously a question that is case by case, depending on your organization. However, the fact remains that you can’t make this deci-sion without having some experience with the product and/or a strong lending partner that can help make your invest-ment worthwhile. Lenders in the working capital space are extremely proactive in terms of making sure their partners are successfully selling this product. Most lenders have dedicated business develop-ment and account management teams that can put together a solid business plan to make sure that your working capital employee(s) has the tools to convert your leads into fundings. Do your due dili-gence and phone interview a few lenders in the space, and start with the ones that are members of the organizations you’re associated with.
Offering an ancillary product produces many hurdles. You have to make sure that before investing anything into it that it will make sense for the bottom line and fit within your organization on all levels. Working capital has found its way into the equipment leasing space, and has even changed the focus of a lot of large lenders who have fully embraced and integrated the product. Offering working capital isn’t going to make sense for every equip-ment leasing broker/lender, but it is a product that should be explored. You can create an outlet for leads that might not qualify, merchants that need capital faster
than you can provide it or ones that might be in an industry that you don’t have a lender to service, without having to do much more than learn another lender’s guidelines. If you can take away one piece of advice, don’t be so fast to say ‘no’ to your clients; speak to a working capital lender about a partnership. We’ll help you say ‘no’ less! •
About tHE AutHor
As vice President of Strategic Partnerships and one of the first employees at Fora Financial, andrew mallinger focuses on nurturing, developing and expanding the company’s sales team as well as business and partner acquisitions. He can be reached by phone at 212-947-0100 x412 or email at [email protected].
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FuNdiNg issuE
This presentation, which was well attended, included a diverse panel of seasoned equipment leasing/financing veterans who discussed a number of topics currently affecting our industry.
The panel consisted of the following participants:
Steve Crane (moderator) Bank of the West
Mike Miller (panelist) NCMIC Finance Corporation
Bruce Smith (panelist) Diversified Capital
Marc Keepman (panelist) KLC Financial
One of the questions covered by the panel was: when are the
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During the recent NEFA conference in Scottsdale, I had the privilege of moderating a panel presentation entitled “From the Front Lines”.
by stEVE crANE, witH AdditioNAl commENts by brucE smitH, clP
From the Front lines
lenders going to relax credit standards? As we get further from the recession, lenders are beginning to ease up on their credit standards. They are becoming more flexible with struc-tures, willing to approve longer terms, application-only ceil-ings are higher, and lenders are generally easier to work with. For example, mortgage modifications on a credit report used to be an automatic decline for many lenders, and now this is becoming more acceptable. With an improving economy and ample liquidity in the credit markets, the credit pendulum is definitely swinging to a more liberal mode, which should benefit our industry in the short-term. We do need to exer-cise some caution, as the economy remains cyclical, and there will be another downturn somewhere in the future.
Technology was another subject that was discussed. Our industry has evolved to the point where we can literally do business on a smart phone. In the not too distant past, appli-cations were sent to funding sources via mail or an overnight carrier. Now we do business almost exclusively via email or some type of secure website. This has not only sped up the credit decision process, but greatly reduced the amount of paper being handled and stored. Our industry has become more efficient and better able to assess risk as a result of the internet. Originators and lenders can research people and companies with ease, and even zoom in to see a picture of a potential customer’s place of business. Technology will continue to progress as companies look for even greater effi-ciencies and profits.
The United States experienced some extreme weather condi-tions last winter and into the spring, and our panel discussed some of the effects this has had on our industry. The severe weather in the Midwest and East caused a temporary decrease in demand for equipment financing. However, it was agreed that slowing of business during the winter should be offset by a pent-up demand in the spring. The continued drought in the west is having a negative impact on many industries, including agriculture. Western farmers are expected to dra-matically reduce their equipment acquisitions due to the lack of water allocations. The drought is likely to cut down on most farmers’ production and have a ripple effect through packing, processing, and retail food sales, ultimately result-ing in higher consumer food prices.
We were fortunate to have an experienced panel, as well as room full of diverse and participative leasing profes-sionals. I would encourage individuals to attend the 2014 NEFA Funding Symposium in San Antonio this September, as NEFA conferences provide an excellent platform for net-working and learning.
commENts From brucE smitH, clP
Many of the independent lessors who survived the down-turn had their own portfolio and funding capabilities that allowed them to continue to finance transactions when their 3rd party funding sources were not. Those that made it through the recession are now experiencing less competition and increased volume. Margins continue to be compressed, but overall, the outlook for our industry over the next few years is good. There is much pent up demand, as many small businesses have delayed ordering new equipment until they feel more confident about the future of their business, indus-try, and overall economy. And more funding sources are aggressively pursuing relationships with independent leasing companies, as they understand this channel is a cost effective
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way for them to build up portfolios that shrunk considerably over the last 5 years.
From a business model standpoint, our company has decided to devote all its energies to the development of vendor programs in its 4 key markets, allowing dealers and manufacturers in those indus-tries to offer financing for their products. Vendors appreciate a financing com-pany that knows their business, and can “walk the walk, and talk the talk” with the customers they have referred. And on the funding side, independents that have a market niche(s) have greater credibility with funding sources who are buying their paper. In worst case scenarios, if equip-ment repossession and remarketing is required as a result of contract defaults, niche independents, because of their market experience, will generally have a greater chance of helping their funders maximize recoveries. •
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About tHE AutHors
steve Crane has been in the equipment leasing/financing industry for over 30 years. He currently holds the position of vice President and Marketing Manager for Bank of the West in the San
Francisco area, where he has worked for 19 years. Prior to this, Steve spent 9 years as a principal in taylor Financial, an equipment lessor in Oakland, California. taylor Financial was an independent broker/lessor that specialized in small to medium sized equipment leasing. He has also worked at CIt, Ingersoll-Rand Financial and Westinghouse Credit in various capacities. Steve served on the board of directors of EAEL for four years and is a Past President of the CLP Foundation. He holds a Bachelor of Science degree from the California State University, Sacramento in Finance and Marketing and earned his Certified Lease Professional (CLP) designation in 1999. Steve can be reached by phone at 925-843-3899 or email at [email protected].
bruce smith, Clp is owner of Diversified Capital Credit Corp. With corporate offices in Gillette, New Jersey and branch offices in Georgia, Pennsylvania, and Minnesota, Diversified Capital specializes
in the development and implementation of value added leasing programs that assist equipment vendors in their sales efforts. Bruce has worked in the industry for 24 years, and received his CLP designation in 2008. He serves on NEFA’s board of directors. He can be reached by phone at 908-394-2026 or email at [email protected].
2014 Funding symposiumseptember 18-20san antonio, texasby gErry EgAN
The 2014 Funding Symposium, under the capable Chairmanship of Scott Woodring, of LeaseTeam, will be September 18-20, at the Hyatt Regency San Antonio Riverwalk hotel in San Antonio, Texas.
San Antonio is an interesting and fun city with lots to do and see. Our conference hotel couldn’t be any better locat-ed to take advantage of it. Two of the city’s most famous landmarks are its Riverwalk, and, of course, the Alamo.
Our hotel is located right on the Riverwalk, in the busy heart of the restaurant and bar area. The grand lobby opens, on its lower level, right onto the Riverwalk and, in fact, a portion of the river actually runs through the lobby of the Hyatt!
Exiting on the other side, from the upper level of the lob-by, puts you on Losoya Street, facing the Alamo, just one block away through an open walkway.
Other nearby tourist attractions, within just a few blocks, include Tussaud’s Waxworks; Ripley’s Believe It or Not Odditorium; the Buckhorn Saloon and Texas Ranger Museum; La Villita Historic Arts Village; an Imax theatre; a multi-story shopping mall; and dozens and dozens of res-taurants and bars. All those are within walking distance!
There are numerous places to catch one of San Antonio’s famed River Cruise boats, and there are great open trol-ley tours of the city, including five historic missions.
There’s no shortage of things for you and your family to see and do in San Antonio, but that doesn’t mean this isn’t a business meeting, too!
The Funding Symposium also serves as the official annual business meeting of NEFA, and we’ll be electing a new Board of Directors and conducting some other associa-tion business at lunch on Friday, the nineteenth.
The rest of the time you’ll have hours of quality network-ing with friends and high quality, table-top exhibitors who want to meet you and help you build your business. Scott Woodring’s team of volunteers are also putting together a packed program of focused, quality educa-tional breakout sessions that will touch on the subjects you’re most interested in. We had lots of compliments on the educational content of our last two conferences, and Scott’s team is committed to continue that tradition and even take it up a notch.
Whenever you register for the Funding Symposium, you can be assured you’re getting the best value in networking, education, and exhibits available in our industry—howev-er, for an even greater value, register early, during our Super Saver registration period; it’s a can’t miss opportunity! •
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FAmily linemANAgEr, tAx rEsEArcH couNsEls At tAxwArE
Anna-mary Geist
When someone tells you that your unborn child will not make it to delivery due to a Critical Congenital Heart Defect (CCHD), you feel helpless. You feel as though there is nowhere to turn because nobody knows what you are going through. Family and friends are wonderful and supportive, but if they haven’t walked in your shoes, there is a comfort they cannot provide. Our son Samuel, who is turning four this September, was that unborn child. He was diagnosed in utero with several CCHDs, namely an interrupted aortic arch, a Hypoplastic Left Heart Variant, Double Outlet Right Ventricle, and a ste-nosed mitral valve. Basically, Sam would be born with a detached aorta and half of a heart. This diagnosis, mixed with some then-unexplained fluid under his skin, led doctors to tell us that Sam would not make it to delivery and if he did, he would not make it through the first in a
series of three life-saving heart surgeries. Furthermore, if he did make it through that first surgery, he would have a bad quality of life and might not live long. The doctors were so sure of Sam’s diag-nosis— and his ultrasounds and fetal MRI did not disagree— that they recommended not doing surgery. These were the hard-est words to hear, as we translated them into: “I’m sorry; you have no choice but to let your child die.” We are strong in our faith, however, and we prayed hard for Sam’s peace—whatever that was.
In the weeks leading up to delivery, the hospital team helped us put a Comfort Care plan in place for the hours—and pos-sible one day—that we would get to spend with Sam after birth. We even visited a funeral home and made arrangements for Sam’s passing. It wasn’t until four days before we were set to deliver him, when
the doctor ordered one last ultrasound to check Sam’s position, that we received our true miracle. Fast forward past 22 extra people in the delivery room with nothing to do when Sam came out screaming, 3 years, 3 open-heart surgeries (the first at 2 days old), and a total of 3+ months in the hospital—most of it in the Cardiac ICU—and we have this wonderful, hap-py, bubbly toddler who fought for every breath he took and is now the epitome of happiness and love. His half of a heart is uniquely magnetic, and he is rarely passed by without giving and receiving a smile, even from the grumpiest of people.
Samuel is what brought me and my fam-ily to volunteer with the New England chapter of It’s My Heart, a non-medical support group for families affected by congenital heart defects. In light of our experience, we wanted to find a way to help other families whose children were born with special hearts like Sam. We came across It’s My Heart New England by chance during a local 4th of July cel-ebration in the town where I grew up. It was as if fate brought us together, and I immediately knew that this was the orga-nization for us. I became engaged in the organization and have been its volunteer President for the past 3 years, meeting and supporting so many amazing, wonderful, and strong families. During my time with the organization, our chapter has tripled in size. I am so proud of what we do, and I have so much fun helping and watching the chapter grow.
It’s My Heart New England’s mission is
our Journey to serviCe
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to advocate and support those living with congenital heart defects through aware-ness, resources and education. Some of the great things we do are: provide informa-tion on CHD through literature, newslet-ters, and up-to-date articles; offer comfort bags, care packages, parking vouchers, food vouchers, and gift cards to families spending extended periods of time in car-diac in-patient units at local hospitals; offer special meals during heart week, pastries, and manicures on Mother’s Day, pizza and root beer on Father’s Day, and a summer ice cream social to cardiac in-patient families; take families to the zoo, aquarium, amusement parks, apple pick-ing, egg hunting, ice skating, bowling, and lots more when they are not in the hospi-tal and “healthy.” All the while, we have made wonderful and dear friends who will last a lifetime.
I could tell you many more stories, but I’ll leave you with a little education instead. Did you know that congenital heart defects affect 1 in 100 babies in the US and are the number one heart defect in America? Did you know that twice as many children in the US die from CHDs each year than from all forms of childhood cancer com-bined, yet research funding for pediatric cancer is five times higher than for CHDs?
this June, Sam We Am will be participating in It’s My Heart New England’s 4th Annual Keep the Beat Walk for CHD Awareness in Danvers, MA. If you want to learn more about this event or more about CHD, please visit www.itsmyheartnewengland.org.
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tidbitsNational Equipment Finance Association
National Equipment Finance Association
ChiCago summer soCialJune 28thJim & Kelly Padden Farm, Beecher, IL
atlanta ansley golF Club lunCheonJuly 17thAnsley Golf Club, Atlanta, GA
institute For leasing proFessionalsJuly 23-24thCLP ExamJuly 25thECS Financial Services, Inc., Chicago, IL
midWest summer eventAl & Alma’s Supper Club Charter CruisesAugust 7thLake Minnetonka, MN
soCal angels baseball netWorking August 7thAngel Stadium of Anaheim, Anaheim, CA
institute For leasing proFessionalsAugust 8-9thCLP Exam August 10thBanc of California, Irvine, CA
institute For leasing proFessionalsAugust 12-13th
ChiCago White sox baseball netWorkingAugust 19thU.S Cellular Field, Chicago, IL
speCial thank you to our 2014 neFa partners!
WelCome neW members!Pelagic caPital corPoration • GEOFF MINSKYDelta ManageMent grouP, inc. • SHANE DAvISranDolPh Business caPital • RANDY POttER
Calendar oF events 2014
2014 national equipment FinanCe summit sponsors to date:Allegiant Partners • Drink Tickets Co-Sponsor
Allegiant Partners • Prize GiveawayBanc of California • Name Badges
Banc of California • Hotel Room KeysBank of the West • Conference Gift
ECS Financial Services • Drink Tickets Co-SponsorECS Financial Services • Prize Giveaway
Financial Pacific Leasing • Registration PacketsLeaseTeam • Mobile App / Printed Pocket Brochure
Orange Commercial Credit • Friday Refreshment BreaksStearns Bank • Mobile Massage Station
Channel Partners • President’s ReceptionPawnee Leasing • Welcome Reception
Great American Insurance • President’s Reception
2014 national equipment FinanCe summit exhibitors to date:
Banc of California • Bank of the West • Bryn Mawr Funding • Business Credit ReportsDelta Management Group, Inc. • ECS Financial Services • Financial Pacific Leasing • Leasepath
LeaseTeam • Orange Commercial Credit • RLC Funding • RTR Services • Pawnee LeasingChannel Partners • Great American Insurance
platinum partners:Bank of the WestChannel PartnersECS Financial ServicesLeaseteamPawnee Leasing
gold partners:Banc of CaliforniaFinancial Pacific LeasingGreat American InsuranceStearns Bank
silver partners:Allegiant PartnersArvest Bryn Mawr FundingBusiness Credit ReportsDakota FinancialLeasepathMaxim Commercial CapitalNCMICOrange Commercial CreditRLC Funding
bronze partners:Collateral Specialists, Inc.RtR Services, Inc.
Continued on page 21
2014 Funding symposiumSeptember 18-20thHyatt Regency San Antonio RiverwalkSan Antonio, tx
institute For leasing proFessionalsOctober 10-11thCLP Exam October 12thFSG Capital, Inc.Laurel, MD
atlanta ansley golF Club lunCheonOctober 23rdAnsley Golf Club, Atlanta, GA
nJ expo regionalNovember 16-17thteaneck Marriotee at Glenpointe, teaneck, NJ
22 neWsline | MAY/JUNE 2014
From neFa’s executive directorContinued from page 4
Calendar of eventsContinued from page 21
I’m fortunate to be blessed with some incredible team players in the NEFA Membership that have allowed us to reinvigorate the association and reach outstanding levels of participation in our events. It sure makes my job easier!
Don’t forget to go to our website (www.NEFAssociation.org) and share your own ideas on teamwork, or any other facet of running a business, in the forums accessible through the Community icon and link.
Oh, and be sure to get to some of these great team-based events NEFA has on the calendar. Be a part of it!
Gerry Egan, Executive Director Direct Phone: 847-380-5052 Email: [email protected]
advertiser index
Banc of California, Inc. ........................................................... 17Business Credit Reports .......................................................... 16Boston Financial and Equity Services ................................5ECS Financial Services, Inc. .................................................. 17Financial Pacific Leasing, Inc. ............................................. 22Great American Insurance Group ........................................5Lease Enforcement Attorney Network ............................ 12Leasing Solutions LLC .............................................................. 22Leaseteam, Inc. .......................................................................... 24Merchant Cash and Capital LLC ............................................9National Equipment Finance Association ..............13, 18Padco Financial Services, Inc. ............................................. 16RtR Services, Inc. ...................................................................... 18
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mEmbEr line
Why aCh processing Company needs neFa
sAlEs ANd mArkEtiNg ExEcutiVE At AcH ProcEssiNg comPANy
Moe Abusaad
With technology becoming a driving force in today’s everyday tasks, check col-lection and traditional
invoicing are becoming a trend compara-ble to the “melting ice cube”. While these trends were a catalyst in joining NEFA and exhibiting at the Summit in Arizona, educating members of the benefits reaped by electronically collecting transactions were critical elements in becoming a part of this organization.
A recent trend in equipment leasing and relatable industries inquiring about our services was noticed prior to our request for information about NEFA member-ship. Once the benefits of active member-ship were listed, the decision was made with ease. The influx of inbound inqui-ries caught our attention and resulted in a consensus from within to actively seek and welcome these clients. This decision has yielded great results in the form of cli-ents benefiting from our services and suite of tools, while allowing ACH Processing Company to diversify our portfolio and
Once the proper authorization is obtained, you have the capability to schedule transactions accordingly. The process: Obviously, the consent to cre-ate these transactions is most important, and is a prerequisite prior to any transact-ing. Next, our client inputs correspond-ing account information obtained in the authorization form: a transaction amount, a start date, an end date, and frequency of transaction. Once the transaction is cre-ated and approved, it is automated to run its course from there. Each time a trans-action is due, it’s automatically debited and then credited into the provided busi-ness account. This not only streamlines the transaction for you, it also cuts down on administrative time spent and lengthy trips to the bank.
At ACH Processing Company, we offer much more than just a payment process-ing system. Our Custom Report Builder allows clients to personalize manage-ment of clients and transactions to their liking. Separating or grouping customers together for ease of access also allows for better account management as well. Alert notifications notify clients for various rea-sons and allow for up to the minute com-munication. Software providers such as Turbo-Lease, our new partner, offer add-on modules that can generate a file that contains batch transactions and can be uploaded directly into our system for the ultimate in efficient transacting.
These partnerships and newly acquired clients were made possible by attending and exhibiting NEFA’s recent summit in the beautiful Scottsdale, Arizona in April. I had the pleasure of meeting many unique contacts during the networking events. The casual conversations and open dialogue made me feel as if I had been a member for years, which was a refreshing experience considering that I was exhibit-ing with NEFA for the first time . Between the profusion of networking that occurred and engaging seminars that outlined cur-rent events, I not only gained valuable contacts from exhibiting, but also gained useful insight into a newly revived and booming industry. •
expand our client base. With new plat-forms on the horizon, and a need within the industry, ACH Processing Company is dedicated to delivering solutions to assist in streamlining transactions of all types.
Leveraging a business and mitigating risk should be on the agenda at all times, for any business, even if that means imple-menting a practice that may turn off a client. Collecting payments via ACH not only assists with reducing risk of late and non-payments, but it also improves cash flow cycle tremendously, when compared to traditional acceptance methods. By simply incorporating a one page docu-ment that authorizes an ACH transaction to take place along with the rest of the contract, you are given the authority to debit the customer’s account at any time you deem necessary. While this practice may not guarantee that you will collect funds each time you submit a transaction, it does guarantee that if the funds due are available at the time of the transaction, you will have access to them.
