Susan L. Hodges 2016-12-07 08:46:43
From sole proprietorships to global finance firms, new ELFA members add depth and breadth
EACH YEAR ELFA is made stronger by the companies that become part of it. Banks, captives and independents join law firms, consultancies and other industry service providers as new members, each broadening the range of industry experience and extending the reach of the association. Below are short profiles of five companies new to ELFA in 2016. Get to know them by starting here— and advance the unity that helps move us all forward.
CNH Industrial Capital LLC
Racine, Wisconsin
President Brett Davis describes CNH Industrial Capital, LLC as a “typical captive finance company with a primary focus on helping support the distribution and sale of equipment manufactured by its parent.” In reality, though, the company is anything but typical, financing roughly $25 billion in agricultural, construction equipment and commercial vehicles around the world for its 175-year-old London-based parent. Says Davis, “We finance everything that our parent manufactures, from agriculture machinery used at hobby farms to large commercial producers, construction equipment used to build roads and houses, and commercial vehicles, which include trucks, buses and others.”
Davis says high-touch, high-quality customer service distinguishes CNH Industrial Capital from its competitors. “We have a strong emphasis on providing superior service to our dealers and their customers, our end-users,” he says. “We also have a variety of tools we use to facilitate that service level.”
An example: the company’s agriculture financing programs. “Agriculture is very much a specialty business and understanding these customers is critical,” says Davis. “Their needs are unique, and we build leasing and retail financing around a farmer’s type of production, locale, harvest periods and planting times.”
More than 400 employees serve customers in North America from three offices (one in Racine; another in Burlington, Canada; and a service center in New Holland, Penn.). Roughly another 600 workers serve customers in other major markets around the world. Davis sees the association’s collective strength as important for lobbying and presenting a united front on legislative issues. “Before assuming my current role, I was responsible for financial services in Latin America,” he says. “We belonged to several trade associations there and I found them very valuable. I believe we can have the same experience with ELFA. We’re excited to participate, and we’re looking forward to interacting.”
Brett Davis
CNH Industrial Capital will participate in the Captive and Vendor Finance Business Council Steering Committee and expects employees to become active in association events as well. Says Davis, “As one of the bigger players in the captive arena, I think we’ll bring energy and ideas to ELFA and the sector.”
Live Oak Bank
Wilmington, North Carolina
Founded in 2008 as a lender for veterinary practices, Live Oak Bank has charted major growth since then—becoming the second largest Small Business Administration lender in the country. Today the small business bank serves companies nationwide in 12 vertical markets, ranging from agricultural to healthcare and dental practices. “Now we’re introducing new products, such as leasing and express loans, to serve these markets,” says Scott Preiser, Domain Expert, Leasing. “Our whole business focuses on what’s best for our customers, and we’re excited about the added value these off erings will bring.”
Scott Preiser
Once a loan closes at Live Oak, the customer is assigned a business advisor who checks in regularly, collects quarterly customer financials, makes personal visits and provides guidance and expertise when needed. Says Kaylie Soule, Marketing Programs Manager, “We’ll continue a customer- centric approach in our leasing product. We want to provide as many business solutions as possible to our customers, and leasing is part of that.”
Live Oak joined ELFA primarily for education and support to be used when developing best practices for the bank’s leasing business. Preiser says the branchless institution already has access to “the best digital technology for moving through the loan process,” thanks to a team of some 30 soft ware developers who are on staff . “We sometimes joke that we’re a technology company that happens to be a bank,” adds Soule.
The goal is to bring the same level of efficiency and service to the leasing process. “Leasing is the leading modality for physicians, pharmacists and family entertainment centers in acquiring equipment,” says Preiser, “and we want it to be a valuable experience.”
Preiser has been involved with ELFA on behalf of a variety of companies since the 1980s and credits the association with “fantastic resources online and at conferences” for staying current on the state of the industry. But he thinks bank employees will contribute as many benefits as they receive. “We’ll bring an intimate knowledge of the markets we serve, and we’ll become very involved on the committee side,” he says. “Steering committees are important for dealing with politics, trends and topics in the economy, and we want to provide input going forward on trends we see with our customers.” Providing thought leadership and market expertise should be good fits as well. Says Preiser, “We have a lot of access to data and a good view of what’s going on in the industries we serve.”
McKinley Scientific, LLC
Sparta, New Jersey
McKinley Scientific is a classic asset-management leasing company that fills a specific niche—so specific that unless you’re a research scientist, you might not be familiar with the mass spectrometers or other analytical-chemistry equipment the firm finances.
Not only does McKinley Scientific finance these tools used in the analysis of chemical compounds to discover or create new drugs, perform steroid testing or conduct blood analysis screenings for newborns. Th e independent firm also refurbishes devices at its facility so that they can be used and financed in the secondary market, at a lower price point. “When someone leases a piece of equipment from us, we don’t go into the equation expecting them to lease for years and then exercise their option to purchase,” says Paul Corcoran, President. “Typically, the asset is returned to us, refurbished, tested and remarketed to customers that could include emerging laboratories, clinics and universities. We’ve helped many companies through their early growth stage.”
Paul Corcoran
Founded in 2001, the company buys and sells equipment in about 85 countries and delivers and installs around the world, always making sure there is physical support from a third party. “We have the ability to structure all types of financing transactions that speak to a particular user need, whether it’s a fair-market-value lease, a fixed buyout or other options that create flexibility for the customer,” says Corcoran. “We focus on the science, technology, project and capacity need. Th is may not be unique to our company, but what is unique is the way we service the market.”
Corcoran has a background in mainframe computers, worked previously in the semiconductor industry and was later exposed to the scientific industry. Herb Lindsley, Executive Vice President and Chief Operating Officer, was a founder and principal at Charter Financial and has accumulated 35 years in equipment finance. “I found the scientific market place underserved and underexposed,” says Corcoran. “Herb and I felt that we could serve it and serve it well, so we created a value proposition that has a high level of sensitivity to the science being done as well as to the financing that’s needed. We knew we had to connect to both communities.”
“We are in the process of expanding our capabilities and bandwidth in the sciences as well as diversifying into other industries,” says Lindsley. “To that end, we’ve formed Mc- Kinley Capital Corp. to maximize the value of our collective resources and backgrounds.”
Lindsley says the company joined ELFA to be part of something larger, to build relationships and to learn from other members. “We also expect to contribute by joining committees, taking advantage of the research the association does and sharing our experience,” he says. “Whether it’s government regulation, capital-markets performance or experience with certain types of transactions, there’s a sharing that comes from collective experience, and we’re excited to be part of it.”
Pacifica Capital
San Juan Capistrano, California
Amy Spragg
After beginning her career with GE in its independent credit card division and then working for another finance company in its bank referral program, Bette Kerhoulas started Pacifica Capital out of her kitchen. “Back then, you went door-to-door making sales calls, you used primarily local banks for financing and you hand-delivered documents,” recalls Amy Spragg, who was 10 when her mother started the company in 1984.
Six months later Pacifica Capital had moved to an executive suite and was cultivating relationships with CitiCorp and other well-known industry firms. Since then, the thirdparty originator has financed more than $750 million in some 15,000 transactions in the United States and around the globe. Says Managing Director Kerhoulas, “Our business relationships are built on a foundation of trust, confidence and exceptional service, using the most competitive programs and financial services in the industry.”
Pacifica Capital does mostly small-ticket deals in niches ranging from broadcast and videography to printing systems, manufacturing, restaurants and solar equipment. The company also handles certain mid- and largeticket transactions and finances office equipment and technology systems for repeat lessees.
“Really, we’re generalists,” says Kerhoulas.
“And the most important qualities that distinguish us are our 32-year history, our integrity and the respect we’ve earned in the equipment finance industry.”
The company joined ELFA for educational offerings that will help Pacifica Capital grow in various market segments. “But I was also part of Capitol Connections this year, and it was rewarding on so many levels,” says Spragg, who has the same title as her mother. “To see the processes by which our industry gets things done and is protected by the association was fulfilling and gave me a different perspective.” Spragg also attended this year’s Operations & Technology Conference and brought back serious enthusiasm. “To know I can now sit down with vendors and plot out a technology path we can go down is fantastic,” she says.
Frohman & Associates, LLC
Merion Station, Pennsylvania
A solo practitioner based in Greater Philadelphia and specializing in equipment finance, Marc Frohman speaks easily about what distinguishes his law firm from competitors: “It’s my experience in-house in a vendor-finance organization,” he says. “Th e world of equipment-leasing lawyers is fairly good-sized, but when you get into vendor finance, it’s a small world, and most of the lawyers are in-house. Having that experience sets me apart because it’s a different perspective—and an important one in terms of working with a leasing company or bank to set up lease programs.”
Marc Frohman
Frohman spent 20 years as in-house counsel, much of that time for GE Capital and De Lage Landen, now DLL Financial Solutions. He also served for several years as public counsel for an electronics manufacturing company before starting his own practice in 2013. “The in-house attorney learns how to negotiate a lease between lessee and lessor and understands the dynamics of that relationship,” says Frohman. “He or she also acquires a certain efficiency and commercial sense that can be hard to find in a law-firm attorney. There is certainly value to each kind, but I believe a lawyer with in-house experience is comfortable making business decisions as well as legal decisions.” Frohman’s clients appreciate his “grounded commercial sense,” he says, which combines responsiveness, prompt action and careful judgment that prevents theoretical risk from becoming a deal impediment.
As an in-house lawyer at DLL, Frohman attended ELFA events, leading and participating in the Legal Forum and going to other conferences. “After I got my solo practice going, membership in ELFA was a no-brainer for me,” he says. “It’s the place to stay abreast of developments in the equipment finance industry, and it’s a place to build relationships— and relationships are a huge part of my business.”
Frohman expects to continue his participation in legal forums as both a participant and presenter, and as he learns more about the association, he says he may expand into other aspects of its life. “But it’s always a challenge as a solo practitioner,” he says. “It’s either feast or famine, and I have to be careful with my bandwidth.”
Susan Hodges writes about equipment finance and other business topics from her office in Wilmette, Ill.
2016 Membership Milestones
Celebrating 40 Years
CIT
GE Commercial Finance
Norlease, Inc.
Celebrating 35 Years
Caterpillar Financial Services Corporation
Celebrating 30 Years
Lease Plan U.S.A., Inc.
Ober, Kaler, Grimes & Shriver
Sasser Family Holdings, Inc.
Celebrating 25 Years
Commerce Bank
LeaseTeam, Inc.
Med One Capital, Inc.
Merchants Bank Equipment Finance
Mizuho Bank (USA)
Sentry Financial Corporation
SMBC Leasing And Finance, Inc.
Tokyo Century (USA) Inc.
Vedder Price P.C.
Vision Financial Group, Inc.
Celebrating 20 Years
BB&T Equipment Finance
CCA Financial, LLC
Cisco Systems Capital Corporation
Cohn & Dussi, LLC
Credential Leasing Corporation
Dean Machinery International, Inc.
Diebold Global Finance Corporation
Equipment Placement Services, Inc.
First American Equipment Finance, a City National Bank Company
Group Financial Services IFS Technology Solutions, Inc.
Kingsbury Wax Bova, LLC
Kronos Incorporated
Linedata Lending and Leasing
People’s Capital and Leasing Corp.
Portfolio Financial Servicing Company
SCG Capital Corporation
Trans Lease, Inc.
United Leasing & Finance
Kudos to the ELFA Membership Committee!
In 2016 the Membership Committee worked closely with the ELFA Membership Department to assist in the association’s recruitment and retention initiatives. With the committee’s assistance, ELFA met and exceeded its membership goals for the year. Many thanks to the 2016 committee for their hard work and participation:
Andrew Bender, Chair, GSG Financial LLC
Brett Boehm, TBF Financial, LLC
Peter K. Bullen, Key Equipment Finance
Donna Christensen, Corporation Service Company
David P. Farrell, Banc of America Leasing
Brian Fleming, FORT Capital Resources
Jon Gerson, Executive Solutions for Leasing and Finance, Inc.
Michael Green, Dakota Financial, LLC
Keith Large, AGCO Finance
Chris Meeks, Lease Plan U.S.A., Inc.
David Normandin, Banc of California
Marci Slagle, VFI Corporate Finance
Do you know of a company that would benefit from ELFA membership? Please email your recommendation to Julie Benson, VP of Membership Marketing, at jbenson@elfaonline.org.
2016 New Members
21st Century Leasing, LLC
Alliance Funding Group, Inc.
American Commerce Bank N.A.
Ameris Bank
The Andersons, Inc.
Bluechip Asset Management LLC
Capella Equipment Finance LLC
Capex Financial Company, Inc.
City National Capital Finance
CNH Industrial Capital LLC
Codix LLC
Dorsey & Whitney LLP
ENGS Commercial Finance Co.
Enova International
Entegra Capital LLC
First Equilease for Equipment and Transportation Co.
First Utah Bank
Flagstar Bank
Frohman & Associates LLC
Franklin Equipment, LLC
GrowthFunding Equipment
Finance, a Division of People’s Intermountain Bank
Hexaware Technologies
ITRenew
Keating Muething & Klekamp PLL
Keysight Technologies, Inc.
Law Offices of Howard N. Sobel
LD Capital Small Business Finance, LLC
Level One Bank
Live Oak Bank
McKinley Scientific, LLC
Medical Imaging Solutions USA
Meridian OneCap Credit Corp.
MicroTechnologies, LLC
Mille Lacs Corporate Ventures
Mobilease, Inc.
Mobilitie, LLC
Morgan Stanley
MVB Bank, Inc.
Navitas Credit Corp.
OnDeck Capital, Inc.
Origa Renting Private Ltd
Pacifica Capital
Partners Capital Group Inc.
The PrivateBank
Riemer & Braunstein LLP
Rock Creek Leasing LLC
RSH Aviation, Inc.
Stinson Leonard Street LLP
Universal Equipment Leasing Company, LLC
VenSource Capital LLC
WISPer Ventures Leasing, LLC
Wright Law Group, PLLC
Eight Ways to Maximize your ELFA Membership
1 If your company is an ELFA member, you may create a member profile from the ELFA website and gain access to valuable, members-only resources.
2 Regular members may participate in the Survey of Equipment Finance Activity and receive a free copy.
3 Only members may post a press release to the ELFA website, which is also included in ELFA’s QuickBrief, a weekly newsletter distributed to over 13,000 industry professionals.
4 Subscribe to the members-only, email discussion groups: LeaseTalk, AcctgTalk, LegalTalk and TaxTalk to stay connected and exchange information with your peers.
5 Increase the visibility of your company by updating the company logo and description as well as other information in the ELFA membership directory.
6 Help drive the association’s mission and volunteer on an ELFA committee.
7 Access high-quality, interactive training and resources on the essentials of equipment finance through the ELFA Academy.
8 Network with your peers and share best practices at ELFA members-only events: Capitol Connections, Executive Roundtable and the Best Practices Roundtables.
Do you have any questions regarding the benefits of ELFA membership?
Please contact the Membership Department at membership@elfaonline.org.
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