2004 May Issue

MAY 2004
Credit & Collections:
Creating Policies That Fit

FEATURES

Collaborative Collections: Best Practices in Outsourcing
By Ed Castagna and Dan Potts
Why are some lessors rewarded with significantly better results for their outsourcing dollars? Their best practices reveal several concrete steps that every leasing and finance company can take - regardless of size or portfolio strength - to improve collaborations with outsourcing partners. (Ref # OUT020)

Niche Markets: Driving Profitability with New Scoring Strategies
By Peg Maloney
Leasing companies can no longer be competitive by applying one decisioning model for all of their customers. The good news is that today, the ability to apply the appropriate scoring strategy by segments or niche markets is not limited to the mega lessors. (Ref # CRD065)

Converting Debt to Equity? Don't Forget the Due Diligence
By Dan Rouse, David Lionette and Justin Ranney
The decision to convert some or all debt to a form of equity should be carefully pondered and the process planned in detail. To ensure its success, a conversion should involve the input of as many parties as possible to ensure that risks are uncovered prior to any commitments. (Ref # CRD066)

Leasing and the Economy… Benchmarks Show Varied, But Improving, Credit Trends
By Bill Phelan and Tom Ware
Recent economic data suggests that funders, investors and rating agencies concerned about credit quality should feel more comfortable that risk level in the leasing industry is falling. Armed with this knowledge and an improving credit environment, leasing companies are well positioned to begin a new cycle of growth. (Ref # CRD067)

Advanced Technologies & Techniques… Improving Collection Strategies
By Vernon E. Gerety, Ph.D.
Leasing companies have always been early adapters of advance technologies and techniques to improve profitability. The following discusses how the industry may be falling behind relative to other commercial lenders in terms of improvements in the "how's" of collecting delinquent leasing debt and offers some strategies and technologies to improve the effectiveness and efficiency of managing a leasing portfolio. (Ref # COLL007)

Automatic Renewal Provisions May Not Be So Automatic
By Joseph G. Bonanno, Esq., CLP
Many leases contain an automatic renewal provision that provides, in effect, that the lease will automatically renew for a specified term unless the lessee sends notice of its intention not to renew. If used correctly, such provisions can be one of the largest profit centers in a lease transaction - but lessors must find ways to use these provisions defensively. (Ref # LESS010)

What's All This About SILOs? Getting the Record Straight
By Dean Thomas Riskas
As Congress considers the controversial leasing provisions contained in S. 1637 and H.R. 3967, statements by government representatives, members of Congress and the media continue to demonstrate a fundamental misunderstanding of how SILOs actually work. The following article is intended to clear up any myths or misconceptions regarding these solid and efficient financings.
(Ref # LPR004)

COLUMNS

CAREER MOVES
How to Beat Downsizing Syndrome
By Jim Pawlak
Paula is overworked and stressed out. She writes: “Our organization went through a downsizing about six months ago. I thought I was fortunate because I kept my job. I’m not so sure now... (Ref # JBS081)

LEGAL WATCH
Circuits “Crossed” on Non-Curable Defaults… Will the Supreme Court Decide?
By Lesley Anne Hawes
On March 15, 2004, the Court ofAppeals for the First Circuit issued its decision in In re BankVest CapitalCorp. v. Eagle Insurance Co., 2004 U.S. App.LEXIS 4810; Bankr. L. Rep. (CCH) P80, 062 (1st Cir. March 15, 2004). (Ref # LGL1023)

DISPATCHES FROM THE TRENCHES
The Finer Points of “All Risk” Insurance
By Kenneth P. Weinberg, Esq.
This issue discusses two cases. The first case relates to “all risk” insurance provisions. The second case covers the benefits and risks associated with outlining the manner in which collateral is sold after a default. (Ref # LGL1024)