2004 October Issue

OCTOBER 2004
Fifteenth Annual
Convention Issue

FEATURES

As Bank Consolidations Continue - Bigger May In Fact Be Better, Executives Say
By Kevin Riordan
As top executives of the nation's biggest bank-owned equipment leasing companies look ahead to 2005, they seem to have settled upon something approaching a conventional wisdom: In a milieu of mergers and acquisitions and a global economy best described as uncertain, they see bigger bank leasing companies as proving to be better - not just as profit sources, but as better service providers for their customers as well. (Ref # BKL030)

Skeptical Optimism… Capital Spending Looks Bright for 2005, But Caution Remains
By Stuart G. Hoffman
During the latter half of 2004, the U.S. economy has made a transition from stimulus-fueled growth to a self-sustaining expansion. While businesses are clearly able to invest in expanded capacity, there are still several factors that cause some analysts to question the extent to which such investments will actually take place in 2005. Stuart Hoffman, chief economist for The PNC Financial Services Group, shares his views on what lies ahead in business capital spending. (Ref # GEN022)

As Economy Improves, Tempo Picks Up in Leasing Merger & Acquisition Market
By Bruce Kropschot
With U.S. business equipment investment and leasing volume both declining by over 15% from 2000 to 2002 and recovering only slightly in 2003, it is easy to see why the leasing industry M&A activity was at a relatively low level in recent years. Now with economic prospects improving for 2004 and beyond, the outlook for the equipment leasing industry seems more upbeat. (Ref # MER036)

A Profile of Success: Bowers Leads Next Generation at BofA Leasing
An Interview with Douglas H. Bowers, President, Banc of America Leasing
When Bank of America merged with Fleet, it more than doubled the size of its leasing business. The banking giant chose Douglas H. Bowers - a 25-year Bank of America veteran with broad management, corporate finance and turnaround experience to oversee the bank's domestic and international leasing business with more than 50 offices and approximately 900 associates worldwide.
(Ref # PRO072)

De Lage Landen's @oncefinance: Complementing Business & Coordinating Growth for the Future
By Caitlin McCloskey
The demands to be placed on leasing companies to effectively compete in the global marketplace in the next five years have yet to be seen. Clearly, new technology is changing the face of business by simplifying day-today tasks and making the impossible more feasible. In its vendor finance operations, De Lage Landen is paving the way with its worldwide suite of web solutions, @oncefinance.
(Ref # VEN014)

Lessors, Take Heed: Protect Your Business From Commercial Fraud
By Dan Rucker and Sandeep Tyagi
Commercial fraud is here to stay, and many lessors have already been burned multiple times.The way forward is to adopt advanced screening techniques to identify a small proportion of high-risk applications for thorough investigation while routing the remaining applications through an efficient and fast approval process.

An "All-In-One" Solution… Creative Turnkey Financing Unlocks Opportunities
By Brian Shapiro
With turnkey financing, potential clients have expressed enthusiasm about working with one lending company that has the ability to tie each lending element neatly together in a cost-effective, "one-stop" package. The turnkey financing option eliminates the extra personnel, paperwork and unexpected setbacks - and yes, expenses that might otherwise occur. (Ref # CPR096)

GE Vendor Financial Services: Tremendous Capability Offers Broad Set of Customer Solutions
An Interview with Dan Henson, President & CEO of GE Commercial Finance, VFS
In an exclusive interview with Dan Henson, President and CFO of GE Commercial Finance’s Vendor Financial Services (VFS), Dan speaks to VFS’s significant transformation from a vendor leasing programs provider to a multi-product solutions provider with a keen commitment to its customers’ winning. (Ref # CPR097)

Regulatory Changes and Leasing in 2004… They Keep Coming, Don’t They?
By Shawn Halladay
While none of the regulatory changes in 2004 have proven to be cataclysmic as of yet, their ever-changing nature is keeping professionals in the leasing industry on their toes. The following article is intended to alert readers to some of the more relevant tax and accounting issues in the recent past. (Ref # ACC026)

Alter Moneta… Seizing Opportunities on Both Sides of the Border
By Richard E. Hardt
Established in 1998, Alter Moneta is the brainchild of Alain Savard, a former CFO of Bombardier Capital. His vision was to create an equipment leasing and finance company that can provide seamless cross-border service to its customers as well as take advantage of the capital markets on both sides of the Canadian/American border. (Ref # CPR098)

The Opportunity of a Lifetime...
An Interview with William H. Besgen, President of Hitachi Capital America
Recently William Besgen, President and Chief Operating Officer of Hitachi Capital America, and the Monitor met for an interview. We wanted to know more about what his career in the leasing industry was all about - how did it start, who were the key people who helped along the way and what could he share so that others with similar ambitions would learn from his experiences. (Ref # PRO073)

A Tale of Four Borrowers (As Told by a Turnaround Manager)
By Thomas D. Hays, III
One does not hear much about turnaround and crisis management in the leasing world. However, lease financing is just another form of debt, and both lessor and lessee alike can benefit from the "outside of the box" solutions that turnaround professionals can provide.
(Ref # TUR003)

Special Report: Teal Group's 14th Annual Business Jet Overview
By Richard L. Aboulafia
Our overview comprises three written sections and one quantitative section. First,we look at the market, and where it’s going. Second, we look at the companies that make business aircraft. Third is our look at several key business aircraft segments-turboprops, light jets (including microjets), the upper-middle range, and the very high end (including Supersonic Business Jets). All of these sections use constant 2004 dollars for comparison purposes.

TOP GUN TRIBUTE: In Memory of Bill & Michael Granieri -

Some Advice to Rookies: Listen to the Winners, Not the Whiners
By Bill Granieri, Reprinted from the March/April 1996 issue of the Monitor

Marketing & Closing Tips
By Michael Granieri, Reprinted from the November/December 2002 issue of the Monitor
(Ref # SAL122)

COLUMNS

CAREER MOVES
Clearing Hurdles In the Race for a New Job
By Jim Pawlak
The favorite to win the 110-meter hurdles finished third. He was asked: “What happened?” The hurdler replied: “I got out of the blocks really slow. Then I nicked two hurdles. Sometimes it just happens that way.” (Ref # GEN021)

LEGAL WATCH
Small Stakes Lead to a Big Decision
By Lesley Anne Hawes
Supreme Court Weighs In On Cram Down Interest Rates. (Ref # LGL1032)

DISPATCHES FROM THE TRENCHES
Know What You’re Getting Into… Understanding the Risk of Successor Liability
By Kenneth P. Weinberg, Esq.
This issue of Dispatches from the Trenches discusses lender control liability, which Uniform Commercial Code statute of limitations applies when goods are financed on vendor paper that is subsequently assigned to a funder; whether a debtor’s nickname is “seriously misleading” for purposes of filing a financing statement; and whether an early payment termination is “reasonable” under Georgia law.
(Ref # LGL1033)