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U.S. Economic & CAPEX Outlook
Equipment Finance Industry M&A Outlook
NEFA – A Community of
Meaningful Connections
SEP/OCT 2022
National Equipment Finance Association
2022 Newsline Marketplace Survey
nefassociation.org
2022 NEFA
Funding Symposium
SPECIAL SECTION
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2 NEWSLINE Sep/Oct 2022
43SPECIAL SECTION:
2022 MARKETPLACE SURVEY
Newsline presents its eighth annual Marketplace Survey –
designed to provide a snapshot of how current economic
and market factors are impacting the lessor/lender,
funding source and broker members of NEFA. This year’s
survey includes questions focused on the economy
– starting with the question: Do you believe the U.S.
economy is currently in a recession? The answer to this
question and others may surprise you.
Meet Your National Equipment
Finance Association Team
22
The National Equipment Finance Association team is
focused on providing excellent service and value to
its members. The team has over 50 years of years of
professional experience including strategic management,
marketing, event management and sales.
By Chad Sluss
Pyramid Power – Leveraging the
Three Points of Broker, Lender and
Service Provider
39
An Interview with NEFA CEO Chad Sluss.
By Don Cosenza
M&A Outlook Amid Ination, Interest
Rate Increases and Potential Recession
50
Despite signicant headwinds in the economy, Bob Rinaldi
explains why mergers and acquisitions in the equipment
nance industry will not be negatively impacted and
discusses how the market will continue to be active.
By Bob Rinaldi
ARTICLES
Business Equipment Spending Growth
to Slow in 2023 as Higher Interest Rates
Weigh on Economy
52
Gus Faucher, Chief Economist with The PNC Financial
Services Group, provides his economic outlook for the U.S.
economy and an outlook for CAPEX spending in the coming
years.
By Augustine “Gus” Faucher
Sep/Oct 2022 | Volume 14 Number 5
www.greatamerica.com
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Todd Jarvela
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“We welcome the opportunity
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NEFA – A Community of
Meaningful Connections
54
NEFA Funding Symposium keynote speaker Mark
Scharenbroich, and author of the book, Nice Bike: Making
Meaningful Connections on the Road of Life, shares his
insights into why the way we connect with others really
matters.
By Mark Scharenbroich
Sep/Oct 2022 NEWSLINE 3
www.greatamerica.com
®
OUTSOURCED
PORTFOLIO
SERVICES
Experience to match your
BUSINESS NEEDS
CELEBRATING
30 YEARS
OF EXCELLENCE
TRUSTED
FUNDING
SOURCE
Joe Andries
VP & General Manager -
Portfolio Services Group
507.929.5117
jandries@greatamerica.com
Todd Jarvela
Director - Direct Programs Group
319.261.4182
tjarvela@greatamerica.com
• Vendor Program Expertise
• Long-Term Funding Relationships
“Brokers and their customers benefi t
from our common-sense approach
to credit underwriting, simple
documentation, and same day funding.”
• Third-Party Solutions
• Back-Up Servicing
“We welcome the opportunity
to learn more about your current
servicing platform to determine if
our value-add servicing solutions fi t
your needs.”
4 NEWSLINE Sep/Oct 2022
CLFP FOUNDATION
The CLFP Designation – Who Me?
DEPARTMENTS
ALSO INSIDE
58
By Reid Raykovich
LEGAL
California & New York State Truth-in-Lending Law
Update: What You Don’t Know CAN Hurt You —
The Time to Act is NOW
60
By Robert Hornby and Cory Simmons
6 From NEFA’s President
8 From NEFA’s Chief Executive Ocer
11 In the News...
56 neFACTS
ASSOCIATION
Meet NEFA's New Members
62
Newsline shines a spotlight on some of the equipment lessors,
funding sources, brokers and services providers that have chosen
to join the association during the year. Newsline asked four new
members to share an overview of their businesses and what led them
to join NEFA.
39
50
52
54
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6 NEWSLINE Sep/Oct 2022
2021- 2022 BOARD
OF DIRECTORS
A year has passed quickly and my tenure as NEFA Board
President is coming to a close. I want to once again thank
you for allowing me the privilege of serving in that role
and I appreciate your condence in me. With the support
and guidance of our talented board of directors, the NEFA
sta and volunteer members, I am proud of what we were
able to accomplish working as a team. Our association is
well-positioned for continued success in the future.
It wasn’t always smooth sailing along the way, and we
needed to address our share of challenges within the
organization over the past year. We invested in a new back-oce technology
infrastructure during 2021 and, as with most system implementations, there
were some glitches that needed to be addressed throughout the year to work
out the kinks. Like many of you in your own businesses, we were not immune
to employee turnover. Faced with some unplanned NEFA sta departures, our
NEFA CEO and remaining sta worked diligently to identify, recruit and hire
quality candidates to ll the resource gaps in a timely, eective manner.
As I draft this article, the industry continues to deal with the impacts of sup-
ply-chain issues on equipment availability, high ination rates and increased
regulatory compliance. Further, on Sept. 21, the Federal Reserve announced
an additional 75 basis point increase in the Federal Funds Rate Target for the
third time this year. Our objective is to assist our industry to face these and
other issues head-on through information, education and collaboration with
industry leaders and peers. We continue to improve our CEO Roundtable and
Funding Source, Broker / Lessor leadership programs, allowing members to
hear rsthand how industry senior leadership is dealing with these types of
issues and other concerns facing the market. Our website has a new look and
improved functionality that is easier to navigate and contains quality content
for our members. We further delivered on developing and providing practical
innovations labs designed to provide our members with real-time solutions to
industry issues, quality educational content and an improved searchable mem-
bership directory, just to name a few. With the help of our generous member-
ship, we continue to host exciting events designed to raise funds to give back to
our communities and help those who might need a hand up.
Thank you again for the opportunity to serve the association. Since joining the
board several years ago, I have met many new friends and colleagues and con-
tinue to enjoy the entrepreneurial spirit of our industry. I am excited about the
future and look forward to NEFA’s continued success.
Thank you for your membership and continued support.
EXECUTIVE COMMITTEE
president
JIM JACKSON
THE ALTA GROUP
vice president
SCOTT WHEELER, CLFP
WHEELER BUSINESS CONSULTING
treasurer
ADAM PETERSON
CHANNEL
secretary
ROBERT HORNBY
CSG LAW
immediate past president
LAURA CARINI, CLFP
FINANCIAL PACIFIC LEASING, INC.
BOARD OF DIRECTORS
DON COSENZA, CLFP
NORTH MILL EQUIPMENT FINANCE
G. PAUL FOGLE, CLFP
QUALITY LEASING CO., INC.
KIM KING, CLFP
NAVITAS CREDIT CORP.
JACKLYNN MANNING, CLFP
AMUR EQUIPMENT FINANCE
BETH MCLEAN, CLFP
NORTHLAND CAPITAL EQUIPMENT
FINANCE
SHERVIN RASHTI
SLIM CAPITAL, LLC
BOB RINALDI, CLFP
RINALDI ADVISORY SERVICES
SHAWN SMITH
DEDICATED FINANCIAL GBC
Jim Jackson
NEFA President
A Message from NEFA's
President
As we enter the fall season, we are looking forward to seeing
our members at the nal events planned for the year. On
Sept. 1, I celebrated my second full year with NEFA. My goal
from day one was to be a servant leader, provide optimal
value for our members, enhance the networking and busi-
ness development forums, and create new opportunities
for member involvement. I am proud of the work the Board
of Directors and sta have accomplished over the past two
years and the future ahead.
This issue publishes around the time of the Nov. 2-4 Funding
Symposium in Nashville, TN. Special thanks to the planning
committee and NEFA’s team member, Kale Tissue – Direc-
tor of Events and Operations, for their outstanding work
in developing a memorable conference. The committee
included;
• Co-Chair – Stephanie Hall, CLFP, BankFinancial
Equipment Finance
• Co-Chair – Jena Morgan, CLFP, JDR Solutions
• Committee Member – Kyle Bergeron, Blue Bridge
Financial
• Committee Member – Jerey Bilbrey, Leasepath
• Committee Member – Anne Dalgaard, CPA, CLFP,
Dynamic Rentals
• Committee Member – Beth McLean, CLFP, Northland
Capital
• Committee Member – Kim Riggs, Orion First Financial
• Committee Member – Shawn Smith, Dedicated
Financial GBC
BELOW ARE CONFERENCE HIGHLIGHTS:
Tuesday, Nov. 1
• Charity Axe Throwing Event with proceeds going to
Safe Haven Family Shelter
Wednesday, Nov. 2
• Leaning into Leadership – A STRIPES Leadership Intro-
ductory Workshop
• Women in Leasing Luncheon
• CEO Townhall – Back to the Future
• Ambassadors & New Member Reception
• Welcome Reception
A Message from NEFA's CEO
Thursday, Nov. 3
• Keynote Speaker – Mark Schar-
enbroich
• Commercial Financial Disclo-
sures Panel & Update
• Strategic Planning Panel
• Collections – Be Prepared
Before the Market Changes
• Cyber Security & Tech Tips in
45 Minutes
• Section 1071 Update
• President’s Reception & Dinner
• Whiskey River Saloon Networking event with live music
and dancing. Sponsorship proceeds support the Chris
Walker Education Fund
Throughout the conference, attendees had the opportunity
to connect and learn plus network with NEFA’s longstanding
exhibitors.
As I mentioned earlier, my goal is to provide opportunities
for our members to learn, connect and gain value from their
membership. This year our volunteers and sta provided
educational tools and industry updates, launched new
committees, formalized the regions, updated the website
and member’s only area, and launched a member discount
program. These initiatives have just started, and we plan to
build upon these in 2023 and beyond.
If you are interested in volunteering with a NEFA committee
or regional group, contact me at csluss@nefassociation.org.
SAVE THE DATE FOR THESE UPCOMING EVENTS:
• Dec. 8 – Northeast Regional Event (New York, NY)
• March 21-24, 2023 - Finance Summit (San Diego, CA)
• Oct. 3-6, 2023 - Funding Symposium (San Antonio, TX)
As always, remember to “Think NEFA First” for all your needs
within the industry!
Chad Sluss
CEO
P: 616.204.9599
NEFA Headquarters
P.O. Box 69, Northbrook, IL 60065-0069
847.380.5050 Main | 847.380.5055 Fax
www.NEFAssociation.org
info@NEFAssociation.org
NEFA Chief Executive Ocer
Chad Sluss
847.380.5050 | csluss@NEFAssociation.org
NEFA Director of Events & Operations
Kale Tissue
616.520.3033 | ktissue@NEFAssociation.org
NEFA Newsline ©2022 is published bi-monthly by the
National Equipment Finance Association. All rights reserved.
The opinions and views expressed in this publication
including all editorial and advertising content are not those
of the National Equipment Finance Association and/or
Equipment Finance Advisor, Inc. Reproduction, duplication
or redistribution in whole or in part is not permitted without
express written permission of the National Equipment
Finance Association and Equipment Finance Advisor, Inc.
NEFA Director of Membership
Hannah Kroll
989.859.5864 | hkroll@NEFAssociation.org
Newsline Design & Production
Equipment Finance Advisor, Inc.
d/b/a Advisor Publishing Group
975 Mill Road, Suite G, Bryn Mawr, PA 19010
Editor-in-Chief
Michael Toglia
484.380.3184 | mtoglia@advisorpubs.com
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8 NEWSLINE Sep/Oct 2022
Sep/Oct 2022 NEWSLINE 11
PERSONNEL ANNOUNCEMENTS
Dedicated Financial GBC Adds to Senior Leadership
Dedicated Financial GBC announced that Sarah Kelly joined
the company as its Director of Servicing. With over a decade
of experience in the equipment leasing and nance indus-
try, Kelly will spearhead the expansion of Dedicated's servic-
ing business. Using her extensive systems and technology
project management skills, Kelly will focus on developing an
industry-leading, cradle-to-grave experience for Dedicated’s
servicing clients.
Kelly’s extensive experience includes positions at KLC Finan-
cial, K2 Capital and most recently KSK Consulting.
“Sarah is a commercial nance industry veteran,” said Shawn
Smith. “Heck, she was raised in commercial nance, so it’s
in her blood. That, combined with her passion and excite-
ment for giving back to those in need, makes her a perfect t
to head up our growing servicing division, and we are truly
excited and thankful to have her on board!”
Mitsubishi HC Capital America Adds Ventresca as
Director of Originations, Structured Finance
Mitsubishi HC Capital America named Fred Ventresca as
Director of Originations, Structured Finance. His focus will
be on the company’s core sectors of clean energy, mobility
and technology.
Based in Norwalk, CT, Ventresca will be responsible for
developing new partnerships that focus on nancing private
equity transactions, providing growth capital for businesses,
and designing nancing programs for scaling “as-a-service”
businesses. Solutions include project and structured nance
credit facilities, equipment leases and loans, cash ow loans,
sales nancing programs and purchases of portfolios or
recently completed transactions.
Previously Ventresca served as Managing Director at Value
Creation Partners. Prior to that, he held positions of increas-
ing authority at ConEdison Solutions and GE Capital.
JDR Solutions Adds Morgan as Chief Operations Ocer
JDR Solutions added Jena Morgan, CLFP as its Chief Opera-
tions Ocer.
“I am excited to welcome Jena to the JDR family,” said Doug
Williams, President of JDR. “Jena’s operational, leadership
and industry experience will be a great asset to our organi-
zation.”
Morgan started her career in equipment nance with Chan-
nel Partners as National Business Development Manager.
She joined KLC Financial in 2014 in business development
and moved to project management, technology implemen-
tation, operational eciency and leading the operations
team. She was most recently KLC’s Chief Operations Ocer.
Morgan is a technology visionary who has been able to see
the impact technology and data can have on both the cus-
tomer experience and operational excellence. She is pas-
sionate about taking visions from great ideas to people and
prot powerhouses.
“I am very excited for the opportunity to join JDR’s leader-
ship team,” said Morgan. “JDR’s exceptional industry reputa-
tion and talented employee base will ensure organizational
growth for years to come.”
PEAC Solutions Expands Broker Team with Shilling
The team at Marlin Leasing Corporation has been working
on a global rebrand to PEAC Solutions, which will be com-
pleted by the end of 2022. In planning for the company’s
future growth, it has increased operations to deliver more
ecient and responsive solutions to valued brokers and
customers.
To help enhance the broker program Marlin/PEAC Solu-
tions introduces Ray Shilling, who will join Je Schubert as
a Director of Sales. Shilling has many years of experience in
the industry and at Marlin and is a welcome addition to the
Broker team.
With Shilling stepping into his new role, this powerhouse
duo, with over 60 years of combined industry experience,
will expand existing relationships and bring on new brokers,
as well as discounting and portfolio purchases.
“I’m excited to be part of the expansion of PEAC Solution’s
Broker team,” said Shilling. “Marlin has already established
itself as a leader in providing nancing solutions to its part-
ners, and I look forward to increasing PEAC’s presence in the
marketplace.”
Schubert will specialize in Working Capital Loans while Ray
Shilling will focus on Equipment Finance business.
Marshall Joins Wallwork Financial as National
Sales Director
Wallwork Financial Corporation announced the addition of
Bradon R. Marshall as National Sales Director.
In his new role, Marshall will be responsible for driving sales
strategy, acting as the key liaison for Sales Representatives
and ensuring that Wallwork meets its growth and sales rev-
enue targets while maintaining organizational and market-
place standards to drive real results to the company’s bot-
tom line. He will focus his sales expertise and passion for
helping people maximize their strengths to improve sales
performance, while also maintaining strong relationships
with existing clients.
Wallwork has deep roots in the Midwest with a family busi-
ness history that goes back more than 100 years. The Wall-
work name has long been associated with quality service
and products. Kelly Geiger, Wallwork’s Managing Director
welcomed Marshall and said, “Bradon brings with him an
extensive knowledge of the equipment nance industry. He
is a visionary, a proven leader and exhibits a high level of
integrity. It is very clear that he has a passion for coaching
in the NEWS
National Equipment Finance Association
12 NEWSLINE Sep/Oct 2022
members of his team helping them reach their goals. Bra-
don is customer focused and has an outstanding ability of
adding value to these precious relationships. We are beyond
excited to welcome Bradon to the leadership team at Wall-
work Financial!”
Marshall, excited for the new opportunity, said, “I knew from
my rst conversation with the Wallwork Team that this would
be my new home. I am excited to join a company with such a
positive, long-standing reputation in the industry. The com-
pany’s culture, values and long-term goals align succinctly
with mine and I look forward to leading the National Sales
Team to continued success.”
He continued, “The Wallwork Team has strong aspirations
for future growth and success in the industry. I am ambi-
tious to contribute to the success of the Wallwork Team.”
Marshall began his career in the equipment nance indus-
try, after graduating from West Texas A&M in 2015, with
C.H. Brown Company. His successes led to being named
Chief Operating Ocer and later President of the company.
Marshall joined the Quality Leasing team in October 2019
where he quickly recognized success as top producer and
was named Sales Manager in July 2021.
Oakmont Capital Services Adds Opps and Sales Sta
as Volume Increases
Oakmont Capital Services (OCS) continues to expand in
the second half of 2022, adding six new team members in
both its Pennsylvania and Minnesota oces. To manage the
growing volume of loans processed without sacricing cus-
tomer excellence, OCS welcomes employees in both opera-
tions and sales.
“As our volume increases and our business grows, we want
to ensure we stay committed to our process and deliver the
level of customer service our clients expect,” said Mikki Hen-
kelman, CLFP, Vice President Credit & Risk with Oakmont
Capital Services. “To achieve this, we need to add dedicated,
knowledgeable sta to various teams to make it possible.”
OCS welcomes to the team:
• Jenna Rubenall, Sta Accountant, supports OCS’s Con-
troller and accounting team by fullling daily funding
requests. Her previous experience includes work as a
Sta Accountant for an electrical component manufac-
turer and a year of service for AmeriCorps.
• Alicia Moening, Account Manager, joins a team of
nance professionals dedicated to supporting cur-
rent customers. Her role centers on answering loan
questions, discussing new nancing opportunities and
explaining OCS' oerings.
in the NEWS
National Equipment Finance Association
• Grant Mergen, Credit Analyst, and Kendra Lange, Credit
Analyst, support the growing credit department, helping
review and approve customer deals quickly and
eciently.
• Jenny Goebel, Operations Specialist, has 24 years of
experience in the banking industry. Her new role helps
the Documentation and Titling teams ensure process
accuracy.
Rinaldi Advisory Services Adds CNH Industrial Capital
Veteran, Davis
Rinaldi Advisory Services (RAS) announced the addition
of Brett Davis to the RAS team. Davis comes to RAS after
a 25-year career at CNH Industrial, where he held various
leadership positions domestically and internationally. Davis
was President and Chairman of CNH Industrial Capital, LLC,
the captive nance company for CNH Industrial. Addition-
ally, he was the Vice President of New Holland Agriculture
and Construction.
President Bob Rinaldi said, “Besides being just a great per-
son, Brett’s skill set and experience in the OEM, vendor,
dealer distribution and nance channels bring a wealth of
additional resources to RAS clientele.”
Davis added, "I have known Bob for some time, and I have
admired his business acumen, professionalism and passion
for the equipment leasing and nance industry. I have been
honored to call him a friend and now I am excited to be a
part of the RAS team."
AP Equipment Financing Adds Bransdorf to Lead
Floorplan Inventory Division
AP Equipment Financing expanded its current product oer-
ings to include a wholesale ooring nance product for ven-
dor and manufacturer partners and hired Mike Bransdorf to
lead the program.
“I am extremely excited to join the team at AP Equipment
Financing and help establish their oorplan inventory divi-
sion,” said Bransdorf. “With 20 years’ experience in the
inventory nance industry, I am fully prepared and ready to
leverage my background in this new exciting opportunity.”
“Our goal is to help our vendor partners sell more equip-
ment by oering them competitive and convenient nancing
solutions,” said AP President Chris Lerma, CLFP. “In addition
to our loan and lease programs, we will further assist our
partners with competitive oor nancing with the same level
of AP personalized service levels. Mike brings a wealth of
knowledge and experience to the team which will allow us to
launch this product oering quickly.”
Recognizing that businesses of all sizes are requesting easier
all-in-one solutions, AP Equipment Financing is positioned to
better serve their current and future vendor customers with
this product suite. Leveraging Soli's wholesale nance plat-
form in coordination with AP’s proprietary loan origination
platform, AP plans to incorporate automated data transfers
between systems to create eciencies for their customers,
resulting in expedited processing, accuracy, and high levels
of service.
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in the NEWS
National Equipment Finance Association
PEAC Solutions Adds Mercogliano as Head of Asset
Management
PEAC Solutions tapped an industry expert for a newly cre-
ated role. Robert Mercogliano, an industry veteran with
over 30 years of experience, has been hired as Senior Vice
President, Head of Asset Management. Mercogliano will be
responsible for developing the asset management strategy
and remarketing eorts to better support fair market value
leasing and residuals for PEAC.
“I am thrilled to have Bob join our team,” said Tom Lyle, COO
of PEAC Solutions. “Bob brings a wealth of experience in all
asset classes and will help build our oerings in Construc-
tion, Transportation and Industrial (CT&I), Healthcare, Oce
Equipment, and Direct.”
Mercogliano comes to PEAC from the heavy equipment
online auction company, Bidadoo.
On the new position, Mercogliano said, “Under the new
senior management team with decades of experience, I’m
excited to join the PEAC family. The direction that the com-
pany has been heading is one that I
think will open doors for a lot of poten-
tial and growth. Focusing on assets
themselves, rather than a traditional
selling model, is going to help PEAC soar
to new heights as a best-in-class global
equipment nance solutions provider,
and I'm glad that I get to be part of it.”
Patel to Lead Wells Fargo Equipment
Finance, Mayer to Retire
Wells Fargo & Company announced
Amrita Patel will lead Wells Fargo Equip-
ment Finance (WFEF), which oers spe-
cialized nancing for purchase, acqui-
sition or leasing of assets pertaining to
equipment, transportation and rental
eets, as well as comprehensive vendor
and dealer programs. Patel will report
to Mary Katherine DuBose, head of
the bank’s secured lending and leasing
businesses within Wells Fargo Commer-
cial Banking.
Bill Mayer, who led WFEF since 2015,
has announced his retirement after 34
years in nancial services.
“Amrita’s experience, previous leader-
ship roles and strong history of achiev-
ing outstanding results that brought
value to both our business and our
clients will serve her well as the head
of WFEF,” said DuBose. “I am excited
to welcome Amrita to a great group of
leaders who are implementing innova-
tive and creative nancial solutions in
today’s ever-changing economy.”
Previously, Patel was head of Process
Transformation for Wells Fargo Com-
mercial Capital where she drove change
across its business lines through
improved documentation, processes
and controls to help transition the
organization to a more innovative,
sustainable-growth business model.
Her eorts delivered greater eciency
and consistency, a better client experi-
ence, and enhanced risk management
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The Bank For Independent Lessors
Sep/Oct 2022 NEWSLINE 15
through continuous process improvement. Prior, Patel was
National Sales Manager for the Commercial Vehicle Group,
a division within Equipment Finance. Before joining Wells
Fargo in 2018, Patel held numerous leadership positions
over 18 years at GE Capital through various acquisitions,
divestitures, and enterprise initiatives across the U.S. and
internationally.
Horvath to Join New Global PEAC Finance Team in
CT&I Division
PEAC Solutions is expanding its global Construction, Trans-
portation and Industrial (CT&I) business unit to the USA. To
launch into this industry, PEAC has hired Tibor Horvath, a
40-year industry expert, as Senior Vice President and CT&I
business unit leader. Horvath will be responsible for new
business development, vendor programs, sales and new
product creation across all markets that PEAC Solutions
serves.
“PEAC has a successful history in this industry throughout
Europe and the UK,” said Bill Stephenson, CEO of PEAC
Solutions. “We identify the best talent and most respected
people who serve these markets. Tibor is at the top of that
list with his proven industry experience and performance,
which includes 18 years at DLL. His stellar reputation with
the OEM, Distributor and Dealer networks will continue to
serve him well now that he is part of the PEAC team.”
Horvath was a Vice President during his tenure at DLL and
held numerous key global positions including membership
on the CT&I executive management team. At PEAC, he will
continue to work closely with OEMs, dealers and end-user
customers.
“I am thrilled to join Bill and the global PEAC team to uti-
lize their best-in-class platform. And being a non-bank will
allow us to develop and oer fresh, creative products and
services,” said Horvath. “It’s the ideal situation that allows
me to re-engage with my industry passion, combined with a
company that shares my goals and empowers its employees
to have signicant input into creating new products and ser-
vices for the markets they serve.”
Key Equipment Finance Names McElroy as
VP - Equipment Finance Ocer
Key Equipment Finance named Paul “PJ” McElroy as Vice
President - Equipment Finance Ocer. In this role, McEl-
roy is responsible for managing existing middle market
and business banking relationships, as well as developing
new relationships within Key Equipment Finance’s footprint
throughout eastern Pennsylvania and southern New Jersey.
“PJ brings many years of relevant equipment nance experi-
ence to Key,” said Joe Messineo, Regional Sales Director for
Key Equipment Finance. “Additionally, he established a solid
foundation through his rigorous GE Capital training program
and has supported numerous senior equipment specialists
throughout his career. He previously served as a Vice Presi-
dent at Key and we’re glad to welcome him back.”
Prior to returning to Key Equipment Finance, McElroy was
Senior Vice President - Direct Sales for DLL Group and a
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16 NEWSLINE Sep/Oct 2022
Business Development Manager for Siemens. His career also
includes over a decade of sales experience with GE Capital.
TimePayment Hires Braspenninckx as VP of Sales,
Diversied Industries
TimePayment, a ntech company specializing in commer-
cial equipment lease nancing announced the hiring of Paul
Braspenninckx as Vice President of Sales, Diversied Indus-
tries.
Braspenninckx has more than 25 years of experience in
the banking and nance industry, including positions with
GE Capital, De Lage Landen and most recently with ENGS
Commercial Finance, where he was Vice President of Sales,
leading sales strategies, driving account growth and foster-
ing new customer acquisitions.
Braspenninckx said three things brought him to TimePay-
ment: “Number one, the people: There’s a great team here.
Two, the number of products—that’s a huge advantage.
Three, the technology is great.”
Within his vertical, Braspenninckx is focused on training
new hires, strengthening their vendor and funding bases,
and bringing in national strategic accounts. “A lot of ven-
dors and OEMs don’t have a true micro-ticket product or
partner. TimePayment not only provides that, but with our
technology, we can provide a single unied experience for
vendors to oer mainstream small and mid-ticket products
through our syndication partners. I foresee strong growth
in our Diversied Industries vertical post-COVID.”
TimePayment President and CEO Jay Haverty noted, “Fun-
damentally, Diversied Industries is a role requiring exten-
sive industry experience, with the ability to put vendor ser-
vice and white-glove attention rst and foremost. Paul can
absolutely deliver that. His experience in both small and
mid-ticket leasing, providing captive-like levels of service,
will enable us to provide those same services to the niche
markets that TimePayment focuses on, continuing our ele-
vation of service and quality.”
Haverty also intends to put Braspenninckx’s experience
to use to respond to tomorrow’s equipment leasing land-
scape. “Paul is going to help us with the transition from
traditional equipment leasing to the device-as-a-service
model that combines connected infrastructure and equip-
ment. He’ll be guiding larger small-ticket leasing vendor
programs to take advantage of this new landscape.”
in the NEWS
National Equipment Finance Association
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and vehicles throughout the U.S. and Puerto Rico.
Our clients appreciate our outstanding customer service
delivered through a dedicated team with over 45 years
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As an independent nance company, we make the
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KLC Financial Acquired by Gulf Coast Bank & Trust
Gulf Coast Bank & Trust Company acquired the assets of
KLC Financial, Inc. and KLC Capital Partners, LLC (together
KLC) and is continuing KLC’s success as KLC Financial, LLC,
a subsidiary of Gulf Coast. Founded in 1987 and located in
Minnetonka, MN, KLC provides specialized lease solutions
for vendors and commercial businesses nationally to help
businesses nance and access mission critical equipment
they need to grow their businesses.
Gulf Coast provides a full suite of products serving both
business and consumer nancial needs. Gulf Coast has over
$3 billion in total assets as of June 30.
In a meeting with the board of Gulf Coast Bank & Trust Com-
pany, Chairman Guy Williams said, “We are excited to wel-
come KLC to the Gulf Coast Bank & Trust Company family
of companies. KLC will continue their existing leasing pro-
grams but will now have additional resources and reach that
will enable them to serve even more customers across the
United States. The strong KLC management team will remain
in place and will continue to manage their operations. There
will be no layos as a result of this transaction, instead KLC
will be looking for additional employees to help with their
expansion. The integrity and work ethic of the KLC team
make them a perfect t for us at Gulf Coast Bank.”
Marc Keepman, Chairman and founder of KLC, said, “We are
pleased to have forged this partnership with Gulf Coast and
view it as a natural progression for our team, customers,
vendors and our strategies. This new alliance will allow us
to preserve the strong culture we have built with our team.”
Spencer Thomas, Chief Executive Ocer of KLC, said, “We
are thrilled to have the opportunity to join forces with one of
the most entrepreneurial community banks in America. We
have an aggressive growth plan and being part of Gulf Coast
Bank & Trust Company will provide us with the opportunity
to grow our business to new levels.” Thomas added, “Our
management team has been instrumental in developing our
sta and technology stack for serious scale. The partnership
with Gulf Coast completes the nal piece to capitalize on all
the hard work. We are all extremely excited to travel the next
leg of this journey together!”
The acquisition was eective as of Aug. 10 with KLC’s busi-
ness operations remaining intact and poised for great
growth.
Piper Sandler & Co. and Rinaldi Advisory Services served as
advisors to KLC and Avisen Legal served as legal advisor.
TimePayment Acquires QuickSpark Financial
TimePayment, a Boston-based ntech company owned
by aliates of Fortress Investment Group, announced
the acquisition of QuickSpark Financial, an e-commerce
focused nancing company that helps equipment vendors
and end-users in over 50 industries secure funding for their
small to medium-sized businesses. Based in Tempe, AZ,
QuickSpark works with over 3,500 vendors, including sup-
porting 500 vendors with deep e-commerce integrations.
The transaction has closed and QuickSpark will now operate
as a strategic business unit of TimePayment. The acquisition
also includes the purchase of all active leases held by Quick-
Spark’s subsidiaries which operated under the name Briland
Capital and QSE Capital.
“The QuickSpark team is extraordinarily talented at integrat-
ing with e-commerce websites and supporting vendors, with
a high-touch approach to e-commerce sales that engages
customers and drives larger order sizes,” said Hank Reeves,
Executive Chairman of TimePayment. “The acquisition is a
great strategic and cultural t for TimePayment.”
That condence is echoed by Jay Haverty, TimePayment’s
President and CEO, who points to the long relationship the
two rms have shared. “For years, our teams have both
worked together and competed against each other to oer
the best vendor nancing relationships. QuickSpark’s team
has oered great e-commerce integrations, fantastic clos-
ing and upselling capabilities, and operated a vendor por-
tal continually rated by vendors as one of the best in the
industry.” Looking ahead, he said, “I can’t wait to see what
they can do with TimePayment’s industry-leading technol-
ogy supporting them, especially after our recent platform
enhancement. Together we will take the best of both com-
pany’s e-commerce and internal workow tools to deliver
superior technology and sales automation for the vendor
nance industry.”
Over 30 of QuickSpark’s employees were hired as TimePay-
ment employees. They will operate a new “QuickSpark” stra-
tegic business unit within TimePayment. QuickSpark’s 500
vendor website integrations will continue to operate as is,
with a plan to migrate to TimePayment’s recently unveiled
next-generation e-commerce platform later this year. Time-
Payment will also add many new large funding relationships
via their Syndication Desk to allow the new QuickSpark stra-
tegic business unit to fund more business for each of their
legacy vendors.
Sep/Oct 2022 NEWSLINE 17
MERGERS & ACQUISITIONS
National Equipment Finance Association
18 NEWSLINE Sep/Oct 2022
in the NEWS
National Equipment Finance Association
ECONOMY
Grant Thornton Survey Reveals Sharp, Continual
Decline in Optimism for CFOs
A new survey from Grant Thornton LLP reveals a sharp and
continual decline in optimism for chief nancial ocers
(CFOs) across the country. Many of the same factors con-
tributing to pessimism in the rst quarter of 2022 are still
bothering CFOs — but now, nance leaders are even more
worried. In fact, 72 percent of the 249 CFOs surveyed expect
hikes in interest rates will lead to a recession.
The key ndings from Grant Thornton’s 2022 Q2 CFO Survey
stand in stark contrast to the rm’s ndings last calendar
year. For instance, in September 2021, 69 percent of CFOs
had a positive outlook regarding the U.S. economy over the
next six months. After a year rocked by recession worries
and ination, that gure now stands at 39 percent in the
rm’s latest survey.
Increasing costs of goods and services topped the list of rea-
sons for a negative outlook — 73 percent of CFOs cite this as
a key stressor — while increasing energy costs (71 percent),
supply chain challenges (66 percent), rate hikes (64 percent)
and the increased cost of credit and capital (61 percent)
round out the list of top ve reasons for pessimism.
On the positive side, 65 percent of the CFOs surveyed believe
the economic impact of COVID-19 is waning — an increase
of 15 percentage points from Grant Thornton’s previous CFO
survey. And in an interesting juxtaposition to respondents’
recession worries, two-thirds (66 percent) of those surveyed
expect their companies will meet growth goals. Further, 61
percent expect an increase in net prots over the next 12
months.
Ination Dampens Expectations
As interest rates rose throughout the summer, CFO opti-
mism continued to plummet — and with it, CFO expecta-
tions. Of the 61 percent expecting increased prots, only 15
percent expect growth of more than 10 percent — and 39
percent of CFOs expect a contraction. Of that group, 30 per-
cent expect contraction under 10 percent, while 9 percent
of respondents expect their businesses to contract by over
10 percent.
These contraction concerns are driven by worries about costs.
“The CFOs we surveyed are primarily concerned about
cost, not demand,” said Christopher Schenkenberg, a Grant
Thornton partner and the national business line leader of
the rm’s Tax practice. “That’s exactly what I’m hearing from
clients, too. Among our respondents, 71 percent are con-
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dent on demand, but only 57 percent are condent about
controlling costs.”
In other words, many CFOs are concerned ination will have
a trickle-down eect on their ability to meet goals in key
areas. This is especially evident in supply chain concerns:
Only 54 percent of CFOs are condent they will meet their
supply chain goals — down from 67 percent in Q1. As a
result, cost control is top of mind for many CFOs, a pros-
pect that may sting business leaders who were hoping the
COVID-19 rebound of 2021 would carry over into 2022.
“At the beginning of 2021, there was this sense that COVID-
19 was ending, and growth was going to ramp up,” said Sean
Denham, Grant Thornton’s national Audit growth leader.
“Businesses were far more condent
about the economy and were loosen-
ing their belts a little. Now, with most
expecting a recession, they’ve tightened
their belts considerably.”
“We’re in a place now,” he continued,
“where we’re experiencing the after-
shocks of a pandemic.”
Travel is the top choice for invest-
ment reduction for 29 percent of the
CFOs surveyed by the rm — making
it more than twice as likely to be cho-
sen than any other category. Addition-
ally, Grant Thornton’s Q2 CFO survey
shows nance leaders are focusing on
cost optimization and liquidity. Seven-
ty-eight percent of respondents say
cost optimization is an important area
of focus, while 63 percent say the same
for liquidity.
Anticipating Inbound Recession,
September Forecasts Unchanged,
ACT Research
In the release of its Commercial Vehicle
Dealer Digest, ACT Research reported
essentially unchanged forecasts from
last month—demand remains healthy,
production remains constrained, and
freight rates and volumes managed to
squeak out small improvements com-
pared to August.
According to Kenny Vieth, ACT’s Presi-
dent and Senior Analyst, “We’re hardly
at the ‘living on a prayer’ stage when
it comes to our outlook, but as the old
investing maxim goes: Don’t ght the
Fed.” Elaborating, he said, “We believe
wage ination needs to moderate
before the Fed can begin turning away
from tighter monetary policy. As long
as the jobs reports remains strong, the
harder it may be to tame wage ina-
tion – which may lead to more-aggres-
sive-for-longer rate hikes and worse
than expected economic outcomes.”
He concluded, “As it has been for several months, a mild
recession centered in early 2023 remains our base case.”
INDUSTRY NEWS
Amur Completes 11th Term Securitization, Issues
Nearly $1B in Notes in 2022
Amur Equipment Finance completed its 11th term securiti-
zation in which it issued $466 million in notes secured by
equipment loans and leases originated through its platform.
This transaction was rated by Moody’s and DBRS, with over
80 percent of the notes rated P-1/RIH or AAA/Aaa, respec-
tively, the highest rating granted by each agency. This fol-
20 NEWSLINE Sep/Oct 2022
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National Equipment Finance Association
lows Amur’s January issuance of nearly $500 million in notes,
which was also rated by Moody’s and DBRS.
“This was an excellent transaction for Amur, with a record
number of investors, and shows the durable and deep sup-
port for our business in the capital markets,” said Kalyan
Makam, Amur’s Executive Vice President. “This success is a
testament to the strong position we are in as a company
– tremendous origination reach, an ecient and powerful
platform, unrivaled nancial strength, but most importantly,
an incredibly talented and dedicated team.”
Throughout 2022, Amur has continued to invest in its plat-
form, its people and the communities it serves to better
allow it to deliver nancing solutions eciently and precisely
to its small business customers. This dedicated approach
has allowed Amur to grow into the largest independent
equipment nance provider serving small businesses within
the United States.
Amur has originated over $4 billion of equipment leases,
with a focus on small to medium-ticket transactions, ranging
from $10,000 to $3 million with terms up to 84 months.
Equipment Finance Cares Recaps Pennsylvania Event
Equipment Finance Cares (EFC) held an event at Auxilior Cap-
ital’s new oce in Plymouth Meeting, PA. The event hosted
over 50 equipment nance professionals, from 30 dierent
organizations.
“The Auxilior Capital team was an amazing host for our EFC’s
second trip to the Northeast,” said Jesse Johnson, founder
of Equipment Finance Cares. “A big thank you to all that
attended and the continued support of all EFC sponsors.”
The program oered two industry thought leading panels.
Lisa Rafter, Publisher and CEO of MonitorDaily, moderated
the “Human Side of Leasing” panel that featured: Delroy
Stauer, CLFP - Odessa, Jennifer Martin, CLFP - Key Equip-
ment Finance, Kareem Jernigan - Leasing Associates, and
Hollis Buerd - Star Hill Financial.
The second panel “Best Practices” was moderated by Michael
Toglia, Publisher and CEO of Equipment Finance Advisor.
The panel featured, Tom Lyle, CLFP - PEAC Solutions, Donna
Yanuzzi - 1st Equipment Finance, Joe Leonard, CLFP - Oak-
mont Capital Services, and Rene Paradis - Auxilior Capital
Partners.
Panel discussions touched on topics such as building com-
pany culture, how to manage eective teams, recruiting and
retaining younger talent, maintaining corporate culture with
a remote workforce, and what the new work environment
means to younger professionals.
The foundations that were showcased during the event
were: MAGIC Charities, St. Anthony’s Charter School, Love
Life Now Foundation, Equipment Lease & Finance Founda-
tion, and the Chris Walker Education Fund.
Soli Named to 2022 IDC FinTech Top 100 for Second
Consecutive Year
Soli was named to the 2022 IDC FinTech Rankings. The 19th
annual vendor ranking recognizes the world’s top 100 lead-
ing hardware, software, and service providers to the nan-
cial services industry.
“We are honored to be recognized by IDC as one of the
world’s top 100 nancial technology providers,” said David
Hamilton, CEO of Soli. “Soli solutions provide a highly scal-
able system of record for many nancial institutions around
the world. Our mission-critical systems for consumer and
commercial credit management support the full value chain
from origination to contract administration and portfolio
management for a variety of nancial services rms includ-
ing banks, non-banks, and credit unions. We are commit-
ted to working with our valued customers to continuously
enhance our portfolio of innovative technology solutions on
our software-as-a-service (SaaS) open nance platform.”
The Fortune 500-style ranking categorizes and evaluates the
top global providers of nancial technology based on calen-
dar year revenues from nancial institutions for hardware,
software, and/or services. These providers supply the tech-
nological backbone of the nancial services industry – an
industry that IDC forecasts to reach $590 billion in world-
wide IT spending by 2025.
Continued on page 23...
22 NEWSLINE Sep/Oct 2022
Meet Your National Equipment
Finance Association Team
Hannah Kroll is our newest sta member to join NEFA as the
Director of Membership. She is excited to dive into this new
role focusing on membership growth, retention and engage-
ment. Prior to NEFA, Hannah worked at the Michigan Mort-
gage Lenders Association supporting member engagement
through the coordination of its Chapter events. Hannah also
has a strong background in sales, with over eight years of
experience managing sales for the Association market at the
Kellogg Hotel & Conference Center and the Greater Lansing
Convention & Visitors Bureau. Hannah enjoys building rela-
tionships with the members she serves and believes sales
come naturally if you have a good relationship based on trust
and transparency, a philosophy that has proven successful
in her prior sales roles. Hannah resides in mid-Michigan with
her husband, Danny, and their three children (Cooper - 4,
Ava - 1 and Beau - 5 months). Hannah and her family enjoy
boating, golf cart rides, sledding and anything outdoors, and
they take full advantage of Michigan’s four seasons! When
she is not spending time with family, you can nd her on
the golf course sipping on a High Noon or hiding out in her
garden.
Kale Tissue has been a sta member at NEFA since July
2021. Since coming on board, Kale has taken a deep dive into
NEFA’s events and operations. Kale was recently promoted
to Director of Events and Operations due to her excellent
work with the organization. Kale has over ve years of event
planning experience in various industries, and, prior to NEFA,
worked as an event planner at Ferris State University facili-
tating multiple conferences, workshops and summer camps
with a concentration in continuing education. Kale also
possesses experience in corporate events, administrative
support and association membership services. Kale enjoys
spending time with her family, friends and two Australian
Shepherds, Theo, and Jewel. She plays volleyball year-round,
is a hobby beekeeper and loves a good DIY project.
The National Equipment Finance Association team is focused on providing
excellent service and value to our membership every day. The team has over
50 years of years of professional experience including strategic management,
marketing, event management and sales. Below please enjoy a brief summary
about each of the NEFA team members.
By Chad Sluss
The NEFA team looks forward
to serving our members.
Please feel free to connect
with us anytime should you
need assistance or have any
ideas to improve NEFA’s
offerings.
National Equipment Finance Association
Sep/Oct 2022 NEWSLINE 23
Chad Sluss joined NEFA in September 2020 and has over 20
years of association, strategic management and marketing
experience gained working in various industries. Over the
past two years, Chad has enjoyed serving the NEFA mem-
bers and working every day to make the organization bet-
ter for the membership. Before joining NEFA, Chad worked
for the International Society of Primerus Law Firms serving
as the Senior Vice President of Services. Chad managed the
global events, member services programs, global marketing
and advertising, and benet programs. Other organizations
Chad served included President and CEO of the Associated
Builders and Contractors Michigan Chapter, Member Ser-
vices Manager with the State Bar of Michigan, Director of
Sales & Marketing with the Mount Pleasant Convention &
Visitors Bureau, and Marketing Manager with ARAMARK Cor-
poration.
Chad has been married to his wife, Melissa, for 18 years.
Melissa is a busy professional serving as Director of Bene-
ts for Willis Towers Watson. Chad and Melissa have three
children, Ethan – 24 years old, Cameron – 17 years old, and
Gabrielle – 15 years old. All three kids are extremely active.
Ethan completed his studies at Michigan State University
recently and is seeking an entry level position in nance.
Cameron plays high school tennis, golf and enjoys spend-
ing free time with his friends. Cameron is currently visiting
a number of universities and hopes to pursue his goal of
playing college golf. Gabrielle plays soccer and is an avid
golfer who has the only hole in one within the family, which
she achieved at the age of 14. Gabrielle hopes to play golf in
college.
The NEFA team looks forward to serving our members.
Please feel free to connect with us anytime should you need
assistance or have any ideas to improve NEFA’s oerings.
Over the past few years, the Board of Directors made the
decision to invest in the infrastructure of NEFA, hired highly
qualied sta to support the membership, and developed
new initiatives to provide value to the NEFA community. In
2022, the NEFA Board of Directors and sta established stra-
tegic goals. One main priority established was to improve
the educational oerings at conferences, webinars and via
white papers. Another particularly important initiative was
updating the NEFA online member directory and commu-
nity. Additionally, NEFA developed new committees, for-
malized the NEFA regions including the creation of regional
committees, and started the process of oering member
discount programs. The NEFA conferences and regional
events were enhanced with new speakers, improved edu-
cational content, and enhanced networking opportunities.
All these initiatives with one goal in mind – provide more
value for our members and help them operate their busi-
nesses more eectively, increase business opportunities
and develop long term relationships.
Save the Dates:
• Dec. 8 – Northeast Regional Event (New York, NY)
• March 21-24, 2023 – Finance Summit – InterContinental
San Diego (San Diego, CA)
• Oct. 3-6, 2023 - Funding Symposium – JW Marriott San
Antonio Hill Country Resort & Spa (San Antonio, TX)
• Plans are being nalized for six to eight regional events
in 2023.
The NEFA sta and Board of Directors very much appreciate
your support of the organization. We look forward to seeing
you at a future NEFA event.
ABOUT THE AUTHOR: Chad Sluss is Chief Executive Ocer
of the National Equipment Finance Association.
National Equipment Finance Association
Hannah Kroll
Director of Membership
Kale Tissue
Director of Events & Operations
Chad Sluss
Chief Executive Ocer
24 NEWSLINE Sep/Oct 2022
in the NEWS
National Equipment Finance Association
“IDC is honored to recognize the technology providers that
appear on the 19th annual IDC FinTech Rankings,” said Marc
DeCastro, Research Director at IDC Financial Insights. “These
are the companies that have shown commitment to the
nancial services industry and their appearance on the list
is a testament to that dedication.”
MMP Capital Secures $75MM Secured Warehouse
Facility
MMP Capital closed a $75 million secured warehouse line
with Deutsche Bank.
In under nine years, MMP Capital has become a top 20 inde-
pendent equipment nance company in the United States
and market leader in medical aesthetics and healthcare.
Securing this additional capital is an endorsement of the
MMP Capital business model that originates signicant loan
nancing through its robust network of employees, vendors
and lending partners.
The partnership will augment MMP Capital’s existing nanc-
ing to further expand its balance sheet and help fuel MMP
Capital’s rapid growth. Ultimately, this facility will keep loan
management in house, allowing MMP customers to continue
working with their long-term MMP Capital representatives
who pride themselves on being available around the clock.
MMP Capital was founded in 2013 with a mission to be the
gold standard in healthcare equipment nance in the U.S. It
is located in Farmingdale, NY.
Great American Insurance Group Brings APIs to
Commercial Equipment Finance
Great American Insurance Group has brought the power of
API technology to its insurance programs for commercial
equipment nance. These APIs can help accelerate a nance
company's funding process and provide more options to
their customers looking to acquire equipment.
When equipment is nanced, insurance is usually a neces-
sity, but the process to manage coverage can be slow and
complex. Vic Villegas, Divisional President, Great American’s
Specialty Equipment division, said, "Equipment nance
has been going through some exciting technology driven
changes recently, with focus on automation, eciency and
better customer experiences. Recognizing this, we knew
it was important for us develop APIs as an option for the
industry.”
“Real time access and data exchange are now expected,”
added Brendan Cronin, Innovation Strategy Manager,
Great American’s Specialty Equipment division. “Equipment
nance has evolved from a process that is measured in
weeks to one that is measured in clicks. APIs allow insurance
to be embedded in the process.” The benets of the API inte-
gration include:
• Programs can be managed through existing software,
on the same screens and applications that users use
today.
• Equipment protection can be placed at any point in
the nancing workow, from originations, booking and
funding, to ongoing portfolio management.
• Billing and coverage changes are handled immediately,
without uncertainty and delay.
Villegas added, "We have developed innovative solutions
within the equipment nance industry for the past 30 years.
A consistent goal over these many years is Great American’s
focus on delivering the best service possible to our custom-
ers. Our APIs support this by providing real time access to
the coverage they need at the point in their workow that
they need it.”
Kawasaki Motors Finance Optimizes with Soli’s Whole-
sale Finance Platform
Soli announced Kawasaki Motors Finance Corporation
(KMFC) – the captive nance arm of Kawasaki Motors Corp.
U.S.A., an established global distributor of powersports
vehicles – migrated its entire U.S. operations to the Soli
Wholesale Finance software-as-a-service (SaaS) platform in
December 2021. This implementation moved 1,700 dealers
and 53,000 loans from an aging legacy mainframe to mod-
ernized technology for a seamless user experience that pro-
vides solutions to optimize and grow KMFC’s business.
KMFC provides inventory nancing services to the indepen-
dent retail dealer network of Kawasaki Motors Corp. U.S.A.
Continued fron page 20...
Sep/Oct 2022 NEWSLINE 25
As a captive nance organization looking to proactively meet
the needs of its customers, the Soli platform enables KMFC
to better manage its traditional dealer wholesale loans
and open-account nancing of parts and accessories. They
selected Soli because of its direct knowledge of the power-
sports oorplanning business and technology that enhances
the dealer experience, optimizes cost-saving automated
workows, mitigates risk, and provides actionable insights
for business growth.
“We outgrew our former legacy mainframe, which was very
complex, dicult to maintain, and unable to keep pace with
current and emerging technology,” said Steven Chavez,
Senior Manager, KMFC Credit Services. “The Soli team
guided us every step of the way to help us overcome the
challenges despite the size and com-
plexity of our operations. Their indus-
try knowledge paired with technology
solutions unied our disparate systems
into one comprehensive powersports
nance platform across our entire U.S.
organization.”
The move to Soli’s powersports nance
platform now provides full integration
with KMFC’s core enterprise resource
planning (ERP) software with end-to-end
visibility, upgraded order-processing
procedures, new credit capabilities, and
improved loan onboarding. KMFC’s U.S.
dealers can easily access and manage
their own wholesale and open account
loans through a devoted self-service
web portal – a better user experience
that frees up KMFC resources to focus
on growing their business.
“KMFC’s established powersports prod-
uct line is a leading example of success
in U.S. wholesale nance, and we’re
excited to provide the technology to
eliminate their pain points and enable
their growth,” said David Hamilton, Soli
CEO. “We have a unique understand-
ing of business requirements and the
insight of how our wholesale nance
technology can best manage KMFC’s
existing assets and empower them to
reach their next stage of growth.”
Tamarack’s TrailView Online
Support Service Modernizes EF
Customer Service Capabilities
To support modern expectations for
24/7 access to account information
and streamlined account management
processes, Tamarack Technology, Inc.
has introduced the TrailView Customer
Online Support Service portal. Devel-
oped to address the immediate needs
of equipment nance institutions and
their customers, TrailView empow-
ers lenders with the ability to provide
convenient and secure online account
access to their customers.
“Technology has changed what customers expect from their
nancial institutions,” said Scott Nelson, President and Chief
Digital Ocer at Tamarack. “It doesn’t matter to people if
they are accessing their personal or business accounts, they
want a modern consumer experience. Designed with the
same responsive, mobile-rst design used by the consumer
banking industry, TrailView empowers lenders to deliver
service in a more ecient and cost-eective manner while
increasing customer satisfaction.”
Built to address equipment nance requirements, TrailView
supports improved customer satisfaction by enabling users
to perform common account management tasks online,
24/7, using a web browser or mobile phone.
PORTFOLIO PROTECTION. PERFECTED.
You require customers to insure their leased or financed equipment and
vehicles, but what if a policy expires or is cancelled? Stop worrying about
loss exposure with a program from American Lease Insurance: it includes
blanket contingent coverage on your entire portfolio that automatically
takes effect when other coverage lapses.
Underwritten by A-rated insurance carriers, the ALI ProgramSM provides
property and liability coverage through the entire term of each contract
from inception. Meticulous tracking ensures each asset in your portfolio
is adequately insured, and that your customers pay only for the coverage
you require.
With the ALI Program, your customers benefit from a convenient, affordable
insurance option with exceptional customer service, while you receive
complete portfolio protection and additional fee income. Fully automated
and integrated with all major lease accounting systems, the ALI Program
relieves your team from obtaining insurance documentation to focus on
closing deals.
We’ll safeguard your assets and help you boost income and productivity.
Find out how ALI can work for you: call Wally Keane at 413-369-2181
or Nuria Blais at 413-369-2182.
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888-521-6568
www.aliac.net
We ensure you’re
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26 NEWSLINE Sep/Oct 2022
in the NEWS
National Equipment Finance Association
“When used eectively, automation technology improves
performance by eliminating time-consuming activities so
that sta can focus on the activities that provide more value,”
said Nelson. “With TrailView, users can access and self-man-
age basic account information – dramatically reducing call
volume. And in turn, customer service representatives can
focus their time on higher-level consultative interactions.”
TrailView aggregates and presents information already
being captured by an organization’s existing CMS and LOS
systems. It consists of an external-facing customer por-
tal accessible through a web browser or mobile device, as
well as an administrative portal for use by customer service
team members. Externally, customers can perform common
transactions including the ability to view contract informa-
tion, make monthly payments, change contact information
and request a buyout quote.
The administrative portal provides control over actions
being taken by customers. Hosted on a safe secure private
network, the transaction data is synced every evening. Addi-
tionally, the site is built so that customer service representa-
tives can see what users are viewing, thereby making phone
support more ecient.
Channel Appears on Inc. 5000 List for 10th
Consecutive Year
Brad Peterson, President & Chief Executive Ocer at Chan-
nel, announced the company has earned a place on the Inc.
5000 annual list of the fastest-growing private companies in
America for a 10th consecutive year. Just under 45,000 com-
panies have been named to the list since it began in 1982, of
which only 90 appeared 10 or more times and even fewer
for 10 years consecutively. The list represents a unique view
of the most successful companies within a dynamic segment
of the economy—its independent businesses.
“Channel’s continued growth and success has always been
easily attributed to the power of our people and their intense
commitment to our industry and partners,” said Peterson.
“To consistently rank among the fastest growing private
companies since becoming eligible is truly remarkable and
a hard-earned, exciting recognition of our passionate, dedi-
cated team for whom I am extremely proud.”
Adrian Hebig, Chief Operating Ocer said, “Our culture is
growth, of our relationships with partners, small business
owners, and team members. We begin each day thinking
about how we can positively impact those we serve, and I
believe this dedication is what keeps us among the fastest
growing independent companies year after year.”
The companies on the 2022 Inc. 5000 have not only been
successful, but have also demonstrated resilience amid
supply chain woes, labor shortages and the ongoing impact
of COVID-19. Together, those companies added more than
68,394 jobs over the past three years.
“The accomplishment of building one of the fastest-grow-
ing companies in the U.S., in light of recent economic road-
blocks, cannot be overstated,” said Scott Omelianuk, editor-
in-chief of Inc. “Inc. is thrilled to honor the companies that
have established themselves through innovation, hard work,
and rising to the challenges of today.”
Nine Moritt Hock & Hamro Attorneys Recognized
Best Lawyers in America has recognized nine Moritt Hock
& Hamro attorneys in its 2023 edition. Six attorneys were
included in The Best Lawyers in America and three attorneys
were included in The Best Lawyers: Ones to Watch in America.
Best Lawyers in America.
• Ted A. Berkowitz – Bankruptcy and Creditor Debtor
Rights / Insolvency and Reorganization Law
• David H. Cohen – Real Estate Law
• Andrew B. Eckstein – Bankruptcy and Creditor Debtor
Rights / Insolvency and Reorganization Law
• Robert M. Finkel – Litigation and Controversy – Tax and
Tax Law
• Benjamin Geizhals – Health Care Law
• Henry L. Goldberg – Construction Law
www.callcms.com 877-267-3282
ATTENTION EQUIPMENT
LEASE BROKERS & LESSORS!
Sep/Oct 2022 NEWSLINE 27
Best Lawyers: Ones to Watch in America
• Lauren Bernstein – Bankruptcy and Creditor Debtor
Rights / Insolvency and Reorganization Law and Com-
mercial Litigation
• Michael Calcagni – Litigation-Trusts & Estates and Trusts
& Estates
• Matthew S. De La Torre – Bankruptcy and Creditor
Debtor Rights / Insolvency and Reorganization Law and
Commercial Litigation
Revelation Machinery Appears 2nd Time on Inc. 5000,
with Three-Year Revenue Growth of 952%
Revelation Machinery, which specializes in the manufactur-
ing and industrial industries with ser-
vices in Auctions/Liquidations, Asset
Recovery and Remarketing, was recog-
nized as one of the fastest-growing pri-
vate companies in the US. Named one
of the top 10 manufacturing companies
on the Inc. 5000 list, Revelation Machin-
ery continues its growth from 2021
both in revenue and in job creation.
Tanner Arnold, Founder and CEO of
Revelation Machinery, said, “Not only
were we honored for the 2nd time
by Inc. 5000, but among manufactur-
ing companies, Revelation Machinery
ranks #10. Without our dedicated team
serving manufacturing companies, our
growth wouldn’t be possible. Everyone
should be very proud.”
Inc. revealed that Revelation Machin-
ery is No. 661 on its annual Inc. 5000
list, the most prestigious ranking of
the fastest-growing private companies
in America. The list represents a one-
of-a-kind look at the most successful
companies within the economy’s most
dynamic segment—its independent
businesses. Facebook, Chobani, Under
Armour, Microsoft, Patagonia, and
many other well-known names gained
their rst national exposure as honor-
ees on the Inc. 5000.
Soli’s Latest ABL Release Elevates
Customer and Lender Experience
Soli announced the release of its latest
version of Soli Asset-Based Lending
(ABL) software, which includes several
new and enhanced features designed
to provide a richer experience for cus-
tomers and lenders, mitigate risk, and
streamline processes. As more ABL
nance lenders move their business
operations to the cloud and adopt a
software-as-a-service (SaaS)-rst strat-
egy, Soli’s ongoing product develop-
ment delivers innovation at a rapid
pace through its open nance platform.
“We are always looking to enhance our ABL software to make
the customer experience better, provide more control over
risk, and deliver greater process eciency through our plat-
form,” said Bill Noel, chief product ocer (CPO) of Soli. “Our
SaaS-based open nance platform enables the rapid release
of new features to bring innovations to our ABL lenders and
customers faster than traditional upgrade cycles and with-
out disrupting their business.”
This latest quarterly release of Soli’s ABL software brings
signicant new value to customers, including:
Elevated customer experience
• Enhanced ABL borrower portal with 24/7 self-service
functionality gives customers credit line access, nancial
Alabama - Norman, Wood, Kendrick &
Turner
Arizona - Jennings Haug Keleher
McLeod, LLP
California - Los Angeles - Hemar,
Rousso & Heald, LLP
San Francisco - Cooper, White &
Cooper, LLP
Colorado - Harry L. Simon, P.C.
Delaware - Fineman Krekstein & Harris P.C.
District of Columbia - Friedman, Framme
& Thrush, P.A.
Florida - Miami Beach - Mitrani, Rynor,
Adamsky & Toland P.A.
Orlando - Denius Law P.A.
Georgia - Law Office of
James W. Martin, P.C.
Hawaii - Kessner Umebayashi Bain &
Matsunaga
Illinois - Ashen/Faulkner LTD
Iowa - Simmons Perrine Moyer
Bergman PLC
Louisiana - Adams and Reese, LLP
Maryland - Friedman, Framme &
Thrush, P.A.
Massachusetts - Cohn & Dussi, LLC
Michigan - Jaffe, Raitt, Heuer & Weiss, P.C.
Minnesota - Messerli & Kramer, P.A.
Mississippi - Adams and Reese, LLP
Missouri - Jenkins & Kling, P.C.
New Hampshire - Cohn & Dussi, LLC
New Jersey - Chiesa Shahinian &
Giantomasi
New York - New York City - Foster &
Wolkind, P.C.
Syracuse - Barclay Damon LLP
North Carolina - Raleigh - Smith Debnam
North Dakota - Messerli Kramer
Ohio - Bernstein-Burkley, P.C.
Oregon - Farleigh Wada Witt
Pennsylvania - Pittsburgh - Bernstein -
Burkley, P.C.
Philadelphia - Fineman Krekstein &
Harris P.C.
Rhode Island - Cohn & Dussi, LLC
South Carolina - Bunch Law LLC
Texas - Fort Worth - Padfield & Stout, LLP
Houston - Wright Law Group, PLLC
Utah - Ray Quinney & Nebeker, P.C.
Virginia - Richmond - Friedman, Framme &
Thrush, P.A.
Roanoke - JC Law, PLLC
Washington - Farleigh Wada Witt
West Virginia - Bernstein-Burkley, P.C.
Wyoming - Harry L. Simon, P.C.
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28 NEWSLINE Sep/Oct 2022
in the NEWS
National Equipment Finance Association
information, and user administration – anywhere, any
time – empowering them to manage their accounts,
while reducing administrative tasks by lenders.
Increased risk management
• Greater risk controls for demand deposit accounts
(DDAs) – the addition of a maker checker process (e.g.,
dual approval to verify transaction changes) reduces the
risk of unauthorized actions and internal fraud.
• EQ Riskfactor partnership provides actionable insights
for ABL lenders to maximize loan performance, min-
imize risk, and predict creditworthiness or likelihood
of defaults through articial intelligence (AI) modeling
within a single dashboard.
Process eciency
• Streamlined end-of-day (EOD) and end-of-month (EOM)
batch processes increase ABL lender productivity by
scheduling updates and fully automating repetitive
daily and monthly tasks, eliminating manual checklists,
improving timeliness of reporting, and removing poten-
tial compliance breaches due to human error.
North Mill Hits $1B in Originations on Anniversary of
Recapitalization
North Mill Equipment Finance LLC (NMEF) crossed the $1 bil-
lion mark in total originations since its recapitalization by an
aliate of Wafra Capital Partners, Inc. (WCP).
Four years ago, North Mill was acquired by WCP, a New York-
based SEC-registered investment adviser that manages or
advises funds and accounts that invest in specialty nance,
rental and leasing platforms.
“They’ve been an extraordinary partner, supporting our
growth strategy every step of the way,” said David C. Lee,
Chairman and CEO for North Mill. “The fact that we’ve
reached one billion in volume in four short years, on our
anniversary date, is a testament to their collaboration along
with the passion, dedication and hard work espoused by the
entire team at North Mill.”
Since the recapitalization, North Mill has undergone a
major transformation, graduating from a niche-lender that
focused on challenged credits in the transportation sector
to a multi-faceted provider of nancial solutions spanning
the A to C credit markets. The company now nances assets
ranging in diversity from construction and medical equip-
ment to major franchises such as Dunkin Donuts, Subway
and Burger King. Expanded operations have necessitated
the opening of regional oces in multiple locations across
the nation.
North Mill’s leadership team has reworked every facet of
the organization by investing in the technology and funding
and marketing infrastructure necessary to originate new
business exclusively through the third-party channel. The
company has consistently reported record-breaking head-
lines the last few years, most recently declaring an all-time
high for the second quarter of 2022 as organic originations
surged to $146.6 million, up 34 percent from the rst quar-
ter. Last month, North Mill made another major announce-
ment as the company introduced a simpler pricing scheme,
imparting a level of transparency and connectivity between
the organization’s buy rates and credit parameters. The
enhancement makes it much easier for referral partners to
determine borrower eligibility and to identify the potential
buy rate at which a deal will likely price.
Pawnee Leasing Closes Marketed Securitization
for $347MM
Chesswood Group Limited announced its subsidiary, Pawnee
Leasing Corporation, has closed its marketed U.S. securitiza-
tion of receivables. Proceeds from this securitization totaled
$347 million and will be used to repay Pawnee's warehouse
facility and more than $75 million of Chesswood's corporate
revolving credit facility.
"This transaction strengthens both Pawnee's and Chess-
wood's nancial positions. The success of this asset-backed
securitization is evidence of Pawnee's high-quality portfolio
and further demonstrates Chesswood's ability to manage
treasury and funding resources, allowing us to continue to
grow the business" said Ryan Marr, Chesswood's President
and CEO.
Through three wholly owned subsidiaries in the United
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Sep/Oct 2022 NEWSLINE 29
wholly owned, Chesswood Group Limited is a North Amer-
ican specialty nance company publicly traded on the
Toronto Stock Exchange. Colorado-based Pawnee, founded
in 1982, nances a highly diversied portfolio of commercial
equipment leases and loans through relationships with over
600 brokers in the United States.
Soli Launches SaaS Pricing Solution
Soli launched its software-as-a-service (SaaS)-based lease
and loan pricing solution for the U.S. equipment and auto-
motive nance industries. The SaaS version of Soli’s pric-
ing tool provides users with enhanced pricing and reporting
functionality – from simple loans to complex leases. Avail-
able on Soli’s Open Finance Platform, the pricing solution
is consumption-based rather than priced per user, making it
cost-eective for any size secured nance organization and
provides the ability to quickly scale as needed.
This next-gen product leverages the powerful Soli Lease
and Loan Pricing software suite, which allows equipment
and automotive nance lenders to easily generate quotes
and create reports in one straightforward process – making
it simple to oer tailored nance quotes and factor in com-
plex payment, tax, and expense details.
“We’re excited to introduce our newest solution in our suite
of pricing products for equipment and automotive nance
lenders, which allows customers to access pricing function-
ality anywhere and at any time,” said Bill Noel, Chief Product
Ocer (CPO) of Soli. “Our SaaS-based pricing solution fea-
tures an intuitive user interface making it easy for eld sales
to quickly create conditional quotes and secure more busi-
ness. It is our mission to help our customers win and to pro-
vide increasing value through our open nance platform.”
Soli pricing features and functionality include:
• Advanced tax calculations: includes multiple options for
pre-tax and after-tax yields
• More reporting options: full set of downloadable reports
includes summaries, cash ow, tax, rent, accounting,
proof-of-yield reports, and casualty / termination
reports that protect after-tax yields
• Flexible payment periods: allows users to select desired
payment period – including, but not limited to, weekly
and fortnightly
• Expansion of calculations: supports calculations based
on actual days
• New SaaS-based technology: streamlines processes and
is more easily maintained with the latest innovation
• Congurable bonus depreciation to accommodate the
upcoming 2023 bonus depreciation rate modications
30 NEWSLINE Sep/Oct 2022
in the NEWS
National Equipment Finance Association
Mitsubishi HC Capital America’s Work Truck Division
Achieves $1B in Originations
Mitsubishi HC Capital America’s Work Truck Finance division
reached a monumental milestone when it reached $1 bil-
lion in originations. The company reached this impressive
achievement with record volume of $112 million in the quar-
ter ending June 30, while also receiving the most credit appli-
cations in its history.
According to Dave Herring, Vice President and General Man-
ager, Work Truck Finance, the quest to reach $1 billion in
originations has been a team target since October 2019,
when the company began to focus solely on commercial
work trucks. Today, Mitsubishi HC Capital America is the
premier national independent lender dedicated to the work
truck sector.
“These record results are due to executing on our value
proposition, our experience and the commitment from every
member of the Work Truck Finance organization, every day,”
Herring said. “We are winning the business because of our
service. We answer the phone, we call you back, and we pro-
vide the information and exibility dealers need to sell their
work trucks.”
With the strongest start of the year in its more than 20-year
history of nancing trucks, Herring is optimistic for future
performance as the division is actively doing business with
more than 300 work truck dealers on average throughout
the United States.
“How we respond to customers with our consultative, rela-
tionship-based approach and our expertise in this space are
game changers for work truck dealers,” Herring added. “I’m
very excited about what our team has accomplished and am
looking forward to celebrating more monumental accom-
plishments with this team in the future.”
Wintrust Specialty Finance Exceeds $1B Funded
Milestone in First 3.5 Years
Wintrust Specialty Finance (WSF), a division of Beverly Bank
& Trust Company, exceeded a billion dollars in funded
contracts in rst three years by earning market share with
equipment vendor partners and supporting independent
lessors’ liquidity needs through portfolio purchases.
With strong support from its parent company, Wintrust
Financial Corporation, WSF originated in excess of $1 billion
of new leases and loans since launching its funding platform
in January of 2019. Additionally, many new origination part-
ners have been added as WSF continues to strongly invest in
equipment nancing opportunities for small and mid-mar-
ket businesses.
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“The origination volume and earning assets growth our team
has achieved is the result of disciplined and experienced
underwriting, and consistent service levels, which have
allowed us to remain strong through the volatile economy
we nd ourselves in today,” said David Normandin, CLFP,
President and CEO of WSF. “I am proud of the incredible
growing team we have built at Wintrust and the strong orga-
nizational values we exhibit in continuing to support our
partners throughout the global pandemic and the current
challenging economic time. We doubled the size of our team
in 2020, further enhanced and grew our team in 2021, and
continue adding industry-leading talent in 2022 as the busi-
ness continues to scale.”
Ascentium Capital Reports $480.8MM of Second
Quarter 2022 Funding Volume
Ascentium Capital continued its positive momentum in the
second quarter of 2022, achieving $480.8 million in nanced
volume. The company saw a record number of applications
and approvals in this time frame, exceeding Q2 2021 volume
by $122.9 million or 34.3 percent.
“Demand for nancing continues to be strong across the
markets we serve,” said David Lyder, Senior Vice President
of Ascentium Sales & Marketing. “Bolstered by competitive
products, streamlined operations, and strong relationships,
Ascentium Capital continues to elevate our customers’
potential. Small and mid-sized businesses are nding ways
to adapt and thrive in any situation.”
Ascentium Capital oers specialized equipment nancing
and business loans to commercial entities nationwide facil-
itated by a fast, frictionless process.
The company also provides customized
nance programs for equipment man-
ufacturers and distributors with sim-
plied application procedures to help
businesses in a broad array of indus-
tries including commercial vehicles,
energy, franchise, healthcare, industrial,
and technology.
“I’m proud of the hard work and client
focus that our Ascentium Capital associ-
ates exhibit day in and day out,” added
Thomas Depping, Executive Vice Pres-
ident and Ascentium Group Manager.
“Consistently hitting our targets in not
only origination volume, but also port-
folio performance, is a testament to
the dedication of this team. The pas-
sion that our folks have for helping our
clients succeed is one of our greatest
strengths.”
Marlin Leasing Rebrands as PEAC
Solutions
Marlin Leasing Corporation was recently
acquired by funds managed by HPS
Investment Partners LLC and will be
rebranded as PEAC Solutions. The PEAC
family of nance companies includes
PEAC UK and PEAC Europe, and col-
lectively operates in 12 countries with
balance sheet lease assets of over $5.1
billion and annual originations of more than $2.72 billion.
Global CEO Bill Stephenson said, “The goal of this new posi-
tioning of Marlin Capital Solutions as PEAC Solutions, is to
cement the creation of a seamless global entity. This will be
accomplished through a completely cloud-based operations
system, while providing customers with the best equipment
leasing experts in the world. The PEAC Solutions brand
stands for Pan-European Americas Capital Solutions.”
Stephenson went on to say, “We want to build on the success
that Marlin has demonstrated since its founding by folding
it into our global footprint. Our goal is to provide consistent
value to our customers whether they operate in Europe or in
the United States. This rebrand will provide the consistency
we’re looking for across all HPS platforms, and we think it
will provide more clarity to our clients, too. Everyone at HPS,
and at Marlin, is really excited for this brand consolidation.”
Tom Lyle, Global COO, shared his point of view, “PEAC’s
reputation throughout Europe is unmatched. By rebrand-
ing Marlin under the PEAC name, we expect that our clients
and partners will experience a greater level of consistency
in our product oerings and the nancial solutions we are
able to provide on a domestic and international level.” Lyle
concluded, “Coming together under one brand reects our
shared ambition to be the best equipment nance company
in the world.”
•
•
•
•
•
BROKERS AND FUNDERS
SOLUTIONS FOR
instaCOVER
32 NEWSLINE Sep/Oct 2022
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National Equipment Finance Association
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Quality Leasing Continues Record-Breaking Volume
through Q2 2022
Quality Leasing Co., Inc. (QL) posted a 95 percent increase
in funding volume year-over-year for the rst half of 2022.
Additionally, the number of funded transactions grew by 50
percent in the same period; and average contract size rose
by 30 percent to just over $100,000.00. The Carmel, Indi-
ana-based commercial equipment nance company also
noted exceptional growth in the number of referral partners
served, types of asset classes and industries funded, and
repeat borrowers nanced.
Quality Leasing Managing Director, G. Paul Fogle, CLFP, com-
mented on the company’s achievement, “The Quality team is
pleased to be able to serve so many SMBs across the U.S.—
that includes our borrowers and our third-party originators.
We are constantly ne-tuning our newest tech platforms
to make deal submissions easier, credit decisions faster,
and funding processes smoother for everyone involved.” In
May of 2022, Quality Leasing released EZ-Q—a new Appli-
cation Only program for transactions up to $150,000. EZ-Q
utilizes the aggregate scoring models of PayNet, RiskView,
and Credco CoreLogic along with internal data analysis to
generate quick approvals for transactions based o a simple
submission containing an application and equipment spec
sheet. Fogle elaborated on the program’s success, “We are
thrilled with the roll-out of EZ-Q. The program stays true to
our foundational approach of truly understanding a bor-
rower and their business while allowing for speedy approv-
als that keep our referral partners happy.”
With myriad economic factors also aecting the company’s
performance, Quality COO, C.J. Zaruba, noted, “Despite this
quarter’s Federal Reserve rate hikes, the stock bear market,
and national ination numbers, we remain condent in Qual-
ity’s long-standing, common-sense underwriting model.”
May of 2022 also heralded Quality Leasing’s 65th anniver-
sary where attendees of the AACFB spring conference in
Charlotte, NC shared in the celebration. Zaruba, Fogle, and
the Quality leadership team remain optimistic about the
rm’s sustained growth trend through the end of 2022.
Tamarack’s AI Platform Dramatically Streamlines KLC
Financial’s Operations
Within months of the implementation of the articial intel-
ligence (AI) platform from Tamarack Technology, Inc., KLC
Financial, Inc. has realized signicant improvements in its
operational eciency. By implementing custom reporting
using Tamarack’s Data Console business intelligence frame-
work, the national equipment leasing and nance company
has dramatically reduced the amount of time dedicated to
completing the company’s complex monthly commission
process.
“For 10 days each month, our account-
ing department was completely con-
sumed with compiling the commis-
sion payout, and the sales team spent
time doing their own calculations as
well,” said KLC Financial CEO Spencer
Thomas, CLFP. “The whole process was
a drain on the company’s resources
and time. By tapping into the data that
already existed in various programs,
Tamarack’s AI platform automated the
process and created a custom com-
mission report that saves us approxi-
mately 60 hours of work each month.”
According to Thomas, this automation
has fundamentally changed the way
the accounting department processes
commissions. Now, KLC is able to real-
locate accounting resources to activ-
ities that increase the eciency and
accuracy of the company’s nancial
decision-making process.
“The use of Tamarack’s AI platform not
only injects eciency into accounting
operations but also adds a layer of
transparency to the commission pro-
cess,” said KLC Accounting Supervisor
Saima Hawley. “So instead of receiving
manual reports created by the sales
team, accounting delivers reports that
accurately reect details pulled from
Sep/Oct 2022 NEWSLINE 33
our own data and often from disparate data systems. Not
only are we freeing up accounting time, we are also enabling
our sales team to spend more time serving customers.”
One of the rst companies to implement Tamarack’s AI plat-
form in the second half of 2021, KLC uses a fully integrated
AI tool to increase eciency and accuracy of its lending
decision-making. The company has begun to implement the
platform’s prediction capabilities in the automation of pro-
cesses to further drive innovation and eciencies across the
organization.
“The results that KLC Financial has already realized from the
use of AI is just the beginning,” said Scott Nelson, President
and Chief Digital Ocer at Tamarack. “The use of Tamarack’s
prediction tools will empower KLC to be more focused and
more productive. Beyond expediting largely manual pro-
cesses, leveraging data can build transparency and trust
within an organization. Business Intelligence and AI both
harness data to empower KLC to be more condent in their
decisions but help them make those decisions faster.”
Designed specically for the equipment nance industry,
Tamarack’s AI platform continuously and autonomously
helps reduce capital risk through analysis and learning
gained from operational data. Tamarack’s team worked
closely with KLC to aggregate the data from past transac-
tions and built it into the AI model. The Tamarack AI platform
can pull data from all KLC’s digital systems – past and pres-
ent – and use that data to predict future nancial outcomes
and drive innovation.
Maxim Commercial Capital Funded from $20,000 to
$2MM in Q2
Maxim Commercial Capital provided creative nancing solu-
tions for small businesses across the U.S. during the second
quarter of 2022. Fundings ranged in size from $20,000 for
an owner-operator to purchase a new rig to $2.0 million for
a residential care company to purchase an additional facility
to grow its business.
“This year’s low inventories and skyrocketing prices for heavy
equipment and trucks have made it dicult for our custom-
ers to buy equipment without depleting cash on hand,” said
Michael Kianmahd, Executive Vice President. “Fortunately,
many borrowers are enjoying substantial increases in real
estate equity, which we leverage up to 70 percent LTV to
reduce or eliminate down payments on equipment and
real estate purchases, to renance short-term debt and for
working capital.”
Creatively structured transactions involving additional col-
lateral during the period included 100 percent purchase
nancing for a newer contractor with challenged credit to
buy a 2009 CAT 289C Skid Loader, utilizing an owned 2015
Kubota KS957 as additional collateral. A repeat customer
expanded her residential care business by purchasing a $3.2
million home in Malibu, CA, with a $2.0 million loan from
Maxim secured by rst liens on the new home and an owned
oce building and second liens on two other residential
care homes.
34 NEWSLINE Sep/Oct 2022
in the NEWS
National Equipment Finance Association
Based on applications submitted by owner-operators and
non-CDL owners of Class 8 trucks during Q2 2022, aord-
ability is improving. “We are starting to see inated truck
values slowly decline,” said Ryan Selway, Director of Vendor
Relations. “This trend is encouraging as many drivers simply
can’t aord to stay on the road if they have to buy a new rig
at the inated prices.”
North Mill Equipment Finance Enhances Rate Card
Program
North Mill Equipment Finance (NMEF) implemented major
enhancements to its pricing scheme, simplifying its buy
rate structure and connecting each price point directly to
the credit parameters company analysts use to assess each
transaction.
The upgrades provide a decisive benet to the hundreds of
referral agents with whom NMEF partners. Brokers can now
identify the credit variables NMEF reviews when analyzing a
deal. As such, they can determine readily whether a borrow-
er’s credit background matches the parameters associated
with a particular buy rate outlined on the new price cards.
Moreover, the revised pricing is congured in a “waterfall”
format. If a borrower does not meet all the credit require-
ments outlined in one price panel, the transaction will gen-
erally ow to the next price panel, and so on.
“The feedback we receive from our broker partners often
provides the blueprint for change,” said Paul Cheslock, Vice
President, Customer Relations, North Mill. “As a lender that
remains totally committed to the third-party channel, we
take the recommendations we receive from referral agents
very seriously. In this case, imparting a level of transpar-
ency and connectivity between our pricing and credit review
methodology was cited as an opportunity. They spoke, we
listened.”
The new pricing scheme comprises two sets of rate classi-
cations based on equipment type. One class includes buy
rates for most of the equipment that NMEF will consider
nancing while the other class is designed solely for heavy
duty Class 8 sleeper trucks, logging equipment, and printers.
Additionally, the cards have rates for borrowers with better
credit backgrounds and more time in business vs. those with
more challenged credit histories and/or less business expe-
rience.
Stonebriar Commercial Finance Funds $77MM Purchase
and TRAC Leaseback
Stonebriar Commercial Finance announced the closing of a
$77 million TRAC lease with a premier long-haul waste trans-
portation provider serving a broad range of commercial
waste management companies. The lease renanced their
entire eet of tractors, trailers and other related equipment.
Steve White, Executive Vice President and Senior Managing
Director – Capital Markets, said, “This transaction illustrates
Stonebriar’s ability to not only identify creative structuring
solutions, but also deploy capital in time-sensitive situations.
Stonebriar is thrilled to add such a well-established company
to our diverse portfolio of customers.”
Mark Gibson, Managing Director – Capital Markets, added,
“As we were asked to structure, underwrite, document, and
close this complex transaction within 30 days, I am very
proud of our entire team for developing a unique solution
and seamlessly executing in such a timely fashion.”
Great American Insurance Group, Econolease Announce
Embedded Insurance Using APIs
Great American Insurance Group and Econolease Financial
Services have embedded their insurance program using API
Technology. This gives real-time access to coverage when
needed.
Great American has provided innovative insurance solutions
to the equipment leasing and nance industry for over 30
years. The API product enhancement is being distributed
through Specialty Equipment, a division within Great Amer-
ican.
"Real-time APIs allow us to integrate our insurance solu-
tions in ways never before possible,” said Cody Sanguinetti,
Divisional Assistant Vice President, Specialty Equipment.
“Whether during the origination process, at the time of
booking or at any time during servicing, our APIs can help
provide immediate coverage. There is no manual data entry
and no waiting on data les."
Sep/Oct 2022 NEWSLINE 35
Econolease is Canada's leader in food equipment nanc-
ing and operates with a proprietary lease management
software to originate equipment nance contracts and
service its portfolio. Mike Yablon, President of Econolease,
said, "Having an easy, value-added insurance solution is a
vital part of our business. Great American’s real-time APIs
allow us to embed their coverage into our workow, so we
can access the proper protection for our equipment on the
spot. We save time and money with less touch. This allows
us to focus on providing our customers the best experience
possible. Great American’s embedded insurance allows our
sales and service teams to quote, enroll and cancel coverage
under our policy without exiting the workow.”
Yablon added, "This insurance API project couldn't have
come at a better time since we're expanding into the U.S.
market. Econolease prides itself on employing digital solu-
tions to achieve competitive advantages in market. Great
American’s technology has helped automate insurance into
our business processes."
Brendan Cronin, Innovation Strategy Manager at Great
American, said, "We've been continually impressed by the
insight and energy of the Econolease team. They know their
customers and how to create great solutions with technol-
ogy. This is where equipment nance is going in the future,
and we’ll be ready with the digital products that can help
provide faster, easier access to insurance."
SLIM Capital Sees Record Success in First Half of 2022
SLIM Capital, located in Beverly Hills and Orange County, CA,
reported signicant increased business volume for the rst
half of 2022. With a stellar rst half of the year, SLIM Capi-
tal is set to break its yearly funding records. Shervin Rashti,
CEO, is extremely pleased with how 2022 has begun and
feels condent that there will be continued growth as the
company prepares for the last half of the year.
"We had an exciting rst half of 2022, as we saw businesses
emerging out of the pandemic to seize opportunities that
had been squandered during the lockdowns. We were
pleased to experience 48 percent growth in our funding vol-
ume year over year. This growth came through an increase
in repeat clients and by expanding our credit parameters
beyond what standard lenders and banks consider for
nancing. We continue to consider a wide array of indus-
tries to minimize concentration risk within our portfolio. I
anticipate banks will begin to tighten their credit boxes as
they see some stress in their portfolios. Historically, this
allows us to shift focus away from credit as the main sta-
ple of our underwriting, and focus more on structure and
collateral. We strive to nd creative ways to maximize cap-
ital resources for our clients, regardless of economic head-
winds," said Rashti.
First half of 2022 Business Lending for SLIM Capital:
• Average Amount Funded: $156,625
• Total Number of Applications Processed: 1,108
36 NEWSLINE Sep/Oct 2022
in the NEWS
National Equipment Finance Association
• Total Dollar Amount of Applications Processed:
$209,090,830
• Top Industries: Transportation, Construction, Manufac-
turing, Cannabis, Packaging, Food Processing
With Application Only program still up to $300,000, the com-
pany continues to see an increase of quality applications
driving up its average dollar amount of fundings. With such
a variety of industries that it works with, the company is able
to help so many businesses that had needs at the begin-
ning of the year. With the addition of new team members,
its eciency with transaction processing is stellar. As SLIM
Capital moves into the remainder of the year, it strives to
provide nancing options tailored to help businesses with
their needs. As a full-service direct lender SLIM Capital looks
for solutions to get transactions done that many other lend-
ers cannot fund.
CERTIFIED LEASE & FINANCE
PROFESSIONAL FOUNDATION
CLFP Foundation Names Reinhart the 2022 Cindy
Spurdle Award of Excellence Winner
The CLFP Foundation named Candace Reinhart, CLFP, COO/
CXO at CoreTech Leasing, the 2022 Cindy Spurdle Award of
Excellence Winner.
The Cindy Spurdle Award was created in 2012 to acknowl-
edge the CLFP who has contributed the most to the industry
and best represents the CLFP ideals for the year. Nominees
are submitted by the CLFP membership, and the nal award
candidate is voted upon by the entire CLFP Foundation
Board of Directors.
“I am overwhelmed at the thought that I could be the 2022
Cindy Spurdle Award of Excellence recipient, especially
among a group of such remarkable and well deserving
CLFPs,” said Reinhart. “To join the previous 10 award win-
ners is an incredible honor.”
From the beginning of her career in the commercial equip-
ment leasing and nance industry, Reinhart has deliberately
set her sights on raising the bar on industry ethics and stan-
dards. Reinhart has been a member of the CLFP Foundation
Board of Directors since 2021, and currently serves as the
Executive Committee Secretary. She has taught future CLFP
designees in the Academy for Lease & Finance Professionals
for the last ve years and has sat on the ELFA Ops and Tech
Committee since 2018.
“I cannot express my gratitude enough to the Foundation,
the board of directors, and in particular, Reid Raykovich and
Deb Reuben — two women who have been an inspiration to
me with their passion for positive impact on an industry we
all love,” said Reinhart. “To those considering the path to this
esteemed designation, I encourage you to take the leap. The
principles of the CLFP Foundation, coupled with this quickly
growing member group, provide an encouraging look into
what positive work we can do together. CLFP brings unpar-
alleled knowledge, ongoing education, and a mission for
exceptional standards and expertise.”
"Having CLFP experts on our team enables CoreTech to
carry out our mission by keeping our clients’ interests at
our core," said Scott McFetters, founder and President of
CoreTech Leasing. "With their combined expertise and our
team's commitment to unparalleled service and respon-
siveness, we can truly educate our clients through a culture
of trust and shared knowledge to guarantee value at every
touchpoint."
As the COO/CXO at CoreTech Leasing, an independent tech-
nology and equipment lessor, Candace drives client value
to enhance CoreTech's industry leadership position. At
CoreTech, Reinhart achieves this through relentless pursuit
of what is best in the lease and nance industry, as well as
what is best for clients. She leads with an infectious passion
and desire for learning, which has paved the way for her
ascent to the top in her eld. Her proactive management
style and strong worth ethic has set a new industry standard
for both excellence and diligence.
BBoehm@TBFgroup.com | 847.267.0660 | www.TBFgroup.com
Immediate
CASH
for commercial
charge-o s
Sep/Oct 2022 NEWSLINE 37
Please send your company's news items to
mdickinson@advisorpubs.com
CLFP Foundation Adds 25 New CLFPs
The Certied Lease & Finance Professional (CLFP) Founda-
tion announced 25 individuals who recently sat through the
eight-hour online proctored CLFP exam, have passed. They
are:
• James Backo, CLFP – Manager, Portfolio Administra-
tion, Stryker
• Nicholas Balzer, CLFP – Credit Analyst, Vision Financial
Group, Inc.
• Katherine Butzow, CLFP – Senior Marketing Associate,
Stryker
• Megan Bystol-Olvera, CLFP – Credit Administration Ana-
lyst, John Deere Financial
• Michael Clark, CLFP – Associate Manager, Financing
Services, Stryker
• Mark Conrad, CLFP – Regional Finance Manager, Stryker
• Timothy Creasy, CLFP Associate – Assistant Credit Man-
ager, Crossroads Equipment Lease & Finance LLC
• Rachel Dhaenens, CLFP – Director, Marketing, Stryker
• Sylvianne Evans, CLFP – Operations Manager – Bank
Markets, U.S. Bank Equipment Finance
• Ryan Flores, CLFP – VP & Regional Sales Manager, Capi-
tal Equipment Finance, U.S. Bank Equipment Finance
• Daniel Kvas, CLFP – Vice President, Falcon Equipment
Finance, a division of Falcon National Bank
• Anne Long, CLFP – Compliance Legal Risk Manager,
Transport Enterprise Leasing LLC
• Jason Manthei, CLFP – Large Transaction Facilitator, U.S.
Bank Equipment Finance
• Ruth Martens, CLFP – Operational Risk Manager, U.S.
Bank Equipment Finance
• Hunter Miller, CLFP – Senior Portfolio Administrator,
Stryker
• Crystal Murcha, CLFP – Lead, Relationship Management,
Amur Equipment Finance
• Janet Phillips, CLFP – Credit Manager, LEAF Commercial
Capital Inc.
• Jennifer Schreurs, CLFP – Pricing Analytics Manager, U.S.
Bank Equipment Finance
• Jodie Schimek, CLFP Associate – Credit Analyst, Oakmont
Capital Holdings, LLC
• Hailey Seltzer, CLFP – Credit Underwriter, Transport
Enterprise Leasing LLC
• Dakota Smith, CLFP – VP of Strategic Operations, Bevel
Financial LLC
• Steven Strozewski, CLFP – Vice President, U.S. Bank
Equipment Finance
• Amy Sumerfelt, CLFP – Credit Review Specialist, U.S.
Bank Equipment Finance
• Edgar Teniente, CLFP – Client Controller, Orion First
Financial LLC
• Brandie Wawrzynski, CLFP
The CLFP designation identies an individual as a knowl-
edgeable professional to employers, clients, customers, and
peers in the commercial equipment nance industry. There
are Certied Lease & Finance Professionals and Associates
located throughout the United States (including Puerto
Rico), Canada, India, Africa and Australia.
38 NEWSLINE Sep/Oct 202238 NEWSLINE Sep/Oct 2022
THIS TRUCK
DELIVERS CASH
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800.223.6630
aboutyou@nmef.com
www.NMEF.com
601 Merritt 7
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601 Merritt 7
Sep/Oct 2022 NEWSLINE 39
Some say the pyramid has special pow-
ers. One such believer is NEFA’s CEO,
Chad Sluss. Sluss, who just celebrated
his second year in oce, recognizes the
signicance of the triangle not for oth-
erworldly notions like untapped energy,
but rather, for what the three points
comprising its shape represent in the
equipment nance world.
In Sluss’s analogy, each of the three cor-
ners embodies a member of the equip-
ment nance triumvirate: lender, service
provider, and at the pinnacle, broker.
The broker, after all, plays an integral role in the growth of
the other two. For the lender, the broker passes opportunity
in the form of equipment nance transactions. For the ser-
vice provider, both the broker and the lender represent key
markets for its wares.
Therein lies the foundational message: The broker is cen-
tral not only to the equipment nance equation, but to the
growth model for NEFA.
Earlier this year, I contributed an article to NEFA Newsline
extolling the virtues of the association as seen through the
eyes of its three member groups. The premise was that the
best way to demonstrate the organization’s value proposi-
tion was to ask the members themselves. In other words,
“let the people speak.” Since that time, Sluss and his team
have made tremendous progress fortifying NEFA’s value.
Sluss understands that to expand membership, members
require benets. While he is looking for growth in all three
categories – lender, service provider and broker – there is an
emphasis on the latter.
This time, to learn more, we asked Sluss himself. And so, “let
the man speak.”
You have been leading NEFA now for two years.
What lessons have you learned?
The past two years have been challenging yet rewarding.
My rst day on the job was shortly after the pandemic had
started. Before I could even take o my hat and coat, I had
to gure out how to provide value to our membership in the
form of virtual conferences, online learning, and network-
ing. That necessitated the development of virtual program-
ming through a virtual network. No simple feat. I had to dig
deeply into my management and leadership capabilities to
overcome major hurdles while keeping my eye on the prize
– building a new, 21st century National Equipment Finance
Association. NEFA with edited DNA.
What are some of your team’s accomplishments
thus far?
In addition to building our virtual network, we introduced
our NEFA Note e-newsletter, initiated a new NEFA online
community, launched a new and enhanced website, built a
member directory (online and semi-annual downloadable
print version), created a series of sub-committees to help
drive growth, updated and enriched our conferences and
attendee experience and worked closely with our Board of
Directors to develop a strategic plan with several task forces
all aimed at adding more value to the NEFA brand.
Where is NEFA headed in 2023?
When I get up every day, my goal is to make NEFA better
and more valuable to membership. That is what drives my
team and me. We are on the cusp of reinventing NEFA. We
plan to introduce a series of scholastic initiatives with the
help of our Board and other members of the association. We
established sub-committees this year, like the one dedicated
to education. We want to oer things that have never been
available through our organization. Our goal is to become
the “go-to-resource” in the equipment nance space. Educa-
tion on steroids.
Pyramid Power –
Leveraging the Three Points of
Broker, Lender and Service Provider
An Interview with NEFA CEO Chad Sluss
By Don Cosenza
Don Cosenza
North Mill
Equipment Finance
What are some of the planned initiatives?
People absorb information dierently. To accommodate as many unique styles
of learning as possible, we plan to impart knowledge through multiple venues –
nothing is o the table. Podcasts, webinars, document downloads, you name it.
If it is available and ubiquitous, we will consider it. What’s more, negotiations are
underway with a well-known industry organization that could, assuming we move
forward with the arrangement, provide access to thought leadership materials in
the form of webinars, white papers, best practices updates, and other formats.
This partnership could expedite our goal of providing educational resources to
our members. Further, NEFA and our members would be contributors.
What about the content? What’s on the docket?
NEFA is feverishly developing content with the help from the education commit-
tee and other volunteer groups. By the end of this year, we will have content on
topics including, but not limited to:
• Ongoing commercial disclosures
• Explanation of credit variables that lenders use to assess risk
• Discounting principles
• Ways brokers can more eectively partner with lenders
Additionally, we commissioned the assistance of our NEFA Newsline publisher,
Equipment Finance Advisor, to pull content from previous NEFA Newsline issues
to add to our website resource library. We are also in discussions with providers
to develop an educational curriculum and program that could be revolutionary in
the industry.
That sounds intriguing. Can you expound?
We are in the beginning stages of development. What I can say is that we are look-
ing to create an educational experience that oers tangible benets. One thing
that we see missing in the marketplace, particularly as it relates to the broker,
is basic business principles. Brokerages, after all, are businesses. Being a good
broker does not necessarily equate to being a good businessperson. We want
to help our broker members become more prosperous, better businesspeople
who know how to draft a business plan and implement all the components of a
growth model.
How will you determine the curriculum?
Appointees from the triumvirate – lenders, brokers, and service providers – will
be tapped to form an advisory board to guide us. In fact, the education commit-
tee assembled its own advisory board made up of luminaries in the industry. We
know the concept works. By collecting feedback from the people we plan to edu-
cate, we are more apt to deliver the right content, with the right messages, in the
right format. Whatever we can do to train, impart knowledge, and better prepare
our members to succeed in their respective elds will yield a big win for NEFA.
I keep hearing about brokers. Why more brokers?
Brokers are our lifeblood. In fact, 55 percent of members are brokers with the
remaining 45 percent made up of lenders, service providers and other groups.
We want to increase the percentage of brokers given that they drive growth by
the nature of what they do. Plus, when we ask lenders what they need from NEFA,
the response is overwhelmingly the same – more brokers. Along with more bro-
kers come more lenders; along with more brokers and more lenders come more
service providers. There is a positive, lucrative co-dependency that is organic in
nature.
What are NEFA’s biggest challenges in pursuit of its growth plan to reach
more brokers?
The biggest challenge thus far was the pandemic. Now that the pandemic is likely
behind us, we are poised for exceptional growth within the broker category. Until
recently, NEFA was short-staed and did not have the bandwidth to support the
daily management of the association and focus on growth. Recently we hired a
new Director of Membership, Hannah Kroll, who has already recruited ve new
brokers and two new funders in her rst few weeks on the job. The opportunity
for NEFA to double our membership in the next few years is realistic. This growth
would provide so much opportunity for all members to expand their businesses
and connections.
40 NEWSLINE Sep/Oct 2022
Sep/Oct 2022 NEWSLINE 41
Lenders often attend NEFA conferences to meet
brokers. Does NEFA have plans to help lenders reach
brokers throughout the year vs. limiting it to the two
key conference dates?
We understand the goals of funders and absolutely have
plans to expand these opportunities at dierent points
throughout the year. I see an opportunity for NEFA to
oer additional educational programs, and future regional
events, which should attract more brokers as well as funders
and service providers. There are other opportunities that
we have not tapped into yet that are key deliverables in our
business plan. Our mission is vast.
Speaking of missions, what is NEFA’s mission state-
ment? Do you foresee it changing in the future?
Our mission remains the same: To cultivate the growth of
businesses in the equipment leasing and nance industry
by providing networking, collaboration, and the exchange
of impactful knowledge. This mission still embodies NEFA,
and I do not see if changing. What I do see changing is the
expansion of what we oer to underscore the principles of
that mission. What we have done, and will continue to do
in the future, is to expand our oering to provide value and
opportunities for members to engage with the community.
Here comes the proverbial question: What is the
dierence between NEFA and the other industry asso-
ciations?
What sets NEFA apart from the others, as I see it, is our
membership base. They bring to the table a depth of experi-
ence. We have brokers who have been practicing their craft
for decades. We have funders like North Mill Equipment
Finance that have been in business for years and given their
reliance solely on brokers to generate volume, are a natu-
ral t for NEFA. Moreover, there is a sense of community
amongst this group of experienced, highly entrepreneurial
professionals. We often use the term “co-opetition” – that is,
members, despite the notion that they may operate in the
same space, are willing to help each other and share con-
dential information about company operations.
What else sets NEFA apart?
I would be remiss if I did not mention the committees, lead-
ership groups and regional planning committees that have
the common goal of oering participants the chance to net-
work and learn from each other. Again, these groups under-
score the importance that our association places on educa-
tion. These groups represent the tip of the iceberg of what
we have planned scholastically. They include:
• Broker/Lessor/Originator Leadership Group
• Funding Source Leadership Group
• Diversity, Equity & Inclusion Committee
• Member Benets Committee
• Young Professionals Committee
• Women in Leasing Committee
• Midwest Regional Committee
• Northeast Regional Committee
• Northwest Regional Committee
• Southeast Regional Committee
• South Central Regional Committee
• Southwest Regional Committee
What does NEFA’s current membership look like?
Our membership is divided as follows: 325 member com-
panies:
• 55% - Broker/Lessor/Originator
• 21% - Funding Source
• 24% - Service Provider
And as I emphasized, we recently started to deploy a strat-
egy focused on oering benets and tools to all three mem-
ber categories with a special emphasis on the broker.
The last few years have been extremely bullish for
equipment nance brokers and lenders alike. Given
the economic doldrums we are now facing, how do you
expect the potential recession to impact brokers?
From my perspective, NEFA must provide more value than
what has been oered in previous years. This is the mantra
that I talk to my team about each day: What are we doing
to increase the value proposition that will assist our mem-
bers with their business operations, help them increase
sales and maximize prots, and make valuable long-term
connections? NEFA is exploring several potential cost-sav-
ing programs that could be momentous for our members
– veritable game changers. We hope to have an update in
the next few months. These programs would be available to
members through the association.
Where do you see the equipment nance industry
headed next year? What about the next 3 to 5 years?
Personally, I think business will be challenging but sustain-
able for the industry. From what I have learned over the past
few years from industry leaders, equipment nance and
leasing will overcome any future market challenges due to
the entrepreneurs running our member companies. Many
of these folks are brilliant businesspeople who have been
through economic cycles before and who fully compre-
hend the challenges of what it takes to survive and grow.
Take North Mill Equipment Finance. Under the leadership of
David Lee, the company has grown dramatically in the last
few years having reached a billion dollars in originations
since being recapitalized in 2018. That is impressive.
When I mention NEFA to a broker, what image do you
want that individual to conger up?
I envision experienced and sophisticated entrepreneurs like
Shervin Rashti from SLIM Capital, Eric Bunnell from Arvest
Equipment Finance and Joe Leonard from Oakmont Capital
Services – to name a few – who serve their clients well and
do business in a highly ethical manner. These NEFA brokers
have exceptional relationships with funders, service provid-
ers and other organizations that allows them to collaborate
seamlessly with their borrowers.
What do you want your legacy at NEFA to be?
That I helped our members achieve enormous success with
their businesses thanks in part to NEFA having provided
valuable resources, excellent networking opportunities and
industry-leading initiatives – with a special emphasis on
education. I want to see NEFA become the “go-to-resource”
for the equipment nance industry. I see a bright future for
NEFA.
National Equipment Finance Association
ABOUT THE AUTHOR: Don Cosenza, CLFP, is Chief
Marketing Ocer, North Mill Equipment Finance.
The equipment nance industry, like many sec-
tors of the commercial nance industry, is facing
numerous challenges in 2022 including rising inter-
est rates, 40-year high ination, continuing sup-
ply chain issues, a difcult labor market and much
more. While the industry has traditionally remained
resilient in various economic cycles, including chal-
lenges created by COVID-19, these new challenges
are causing company leaders to carefully consider
how to best position their companies to weather
this environment, one that some have experienced
before, and those newer to the industry will face
for the rst time.
With this backdrop, the 2022 Newsline Market-
place Survey included several questions focused
on the current economic environment and how
members view the often-debated state of the
economy – starting with the question: Do you
believe the U.S. economy is currently in a reces-
sion? The answer to this question and others may
surprise you.
As we head into the nal quarter of this battle
for market share in 2022, we know that NEFA’s
lender/lessor, funding source and broker members
are up for the challenge and will strive to maximize
opportunities for today and the future.
Do you believe the U.S. economy is
currently in a recession?
Do you believe the U.S. economy will
experience a recession in 2023?
51%
YES
70%
YES
1 & 2
The U.S. economy experienced two consecutive quarters of negative GDP in the rst half
of 2022. However, there has been debate over whether the economy is in a recession.
51%
YES
70%
YES
1 & 2
Sep/Oct 2022 NEWSLINE 43
44 NEWSLINE Sep/Oct 202244 NEWSLINE Sep/Oct 2022
32%
32%
Excellent
Good
Fair
3
4
19% 62% 19%
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adipiscing elit, sed do
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STEP 02
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STEP 03
The Federal Reserve initiated a series of interest rate hikes in 2022. To what
degree will rising interest rates negatively impact equipment nance
portfolio margins over the next 12 – 18 months?
Signicantly Somewhat Not Much
In June 2022, ination hit a 40-year high.
How concerned are you about ination
impacting the cost of new equipment
and potentially slowing demand for new
equipment?
How would you rate the U.S. economy at this time?
27%
0%
64%
9%
24%
64%
12%
Very Concerned Concerned Not Concerned
Poor
Sep/Oct 2022 NEWSLINE 45
Sep/Oct 2022 NEWSLINE 45
Considering the current economic conditions, what is your outlook
for overall equipment nancing demand over the next 6 — 12 months?
5%
12%
8%
64%
11%Significantly Nega�ve
Nega�ve
Posi�ve
No Impact An�cipated
Undetermined
6
7
8% 68% 24%
What impact will supply chain issues have on equipment nance
demand over the next 6 – 12 months?
Will Increase Remain Steady
With Current
Demand
Will Decrease
In 2022, only 8% of respondents indicated they anticipate equipment nancing demand will
increase over the next 6 to 12 months compared to 52% in the 2021 survey – a signicant
decline. In 2022, 68% indicated equipment nancing demand will remain steady with current
demand versus 48% in the 2021 survey.
46 NEWSLINE Sep/Oct 2022
74%
18%
2% 1% 3% 2%
8
46 NEWSLINE Sep/Oct 2022
Which equipment sectors do you expect to perform best in 2022?
In which sector are you most concerned about LTV ratios in your loan/lease
portfolio as prices for new and used equipment stabilize
to more “normal” levels in specic sectors?
9
Agricultural
Construction
Energy-Related
Healthcare/Medical
Machine Tools
Manufacturing
Office (IT)
Software & Tech (IT)
Transportation
Trucking Construction Manufacturing Materials
Handling
Technology/
Ofce
Equipment
Other
Sep/Oct 2022 NEWSLINE 47
Sep/Oct 2022 NEWSLINE 47
How would you characterize credit underwriting standards/policies
in your company, or the funding sources you utilize over the past 12 months?
Over the next 12 months, what do you anticipate experiencing
in portfolio delinquency?
10
2% 44% 48%
6%
11
69%
7%
Increase in delinquencies
Decrease in delinquencies
Not applicable to my company 3%
21% No change in delinquencies
from the current level
In 2022, 69% of respondents indicated they anticipate portfolio delinquency to increase over
the next 12 months compared to 23% in 2021. Additionally, in 2022, only 21% of respondents
said they believe portfolio delinquency would remain unchanged from current levels compared
to 61% in 2021.
In 2022, a total of 46% of respondents indicated credit underwriting standards had tightened
over the past 12 months versus a total of 25% in the 2021 survey.
UnchangedTightenedSignicantly Tightened Loosened
48 NEWSLINE Sep/Oct 2022
What is impacting your company’s ability to hire
qualied talent the most?
In terms of stafng for the NEXT 12 months, what are
your company's stafng plans?
53% 1% 44% 2%
2%
Not
Applicable
53%
Increase
Staff
1%
Decrease
Staff
44%
No Change
In Stafng
In 2022, 53% of respondents
indicated they will increase staff
over the next 12 months com-
pared to 76% in the 2021 survey.
Additionally, 44% indicated there
would be no change to stafng
levels over the next 12 months
versus 22% in 2021.
We invested
signicantly more in
technology over the
past year.
Our investments in
technology remained
relatively stable over the
past year compared to
previous years.
We did NOT make
signicant investments
in technology over the
past year, but we expect
to make signicant
investments over the next
6 to 12 months.
We did NOT make
signicant investments
in technology over the
past year, nor do we
expect to make signicant
investments over the next
6 to 12 months.
10% 11%
25%
54%
23%
58%
9%
10%
Rising salaries/Compensation
requirements
Lack of qualied candidates
Meeting prospective employees'
work location exibility requirements
Other
Which best describes your company’s investment in technology?
What is your company’s annual new
business origination volume?
Sep/Oct 2022 NEWSLINE 49
ABOUT THE SURVEY | The 2022
NEFA Newsline Marketplace Survey
was conducted over a 30-day period
beginning in August 2022 and received
a 17.2% response rate. The survey was
sent to members of the National Equip-
ment Finance Association categorized
as lessors/lenders, funding sources and
brokers.
We welcome your feedback and insights
into questions you would like to see
included in future surveys. Please send
your comments to our Senior Editor,
Michael Dickinson -
mdickinson@advisorpubs.com.
The Newsline staff thanks the NEFA
members who participated in the
survey for their insights into the state
of the equipment nance industry.
What type of nancing institution
is your company?
15
3% Other- Specialty Lender
16% I am a Broker
31% Bank-afliated Equipment
Finance Company
2%
Not
Applicable
Less than $1MM
$1MM to $5MM
$5MM to $25MM
$25MM to $50MM
$50MM to $100MM
$100MM to $250MM
$250MM to $500MM
Over $500MM
2%
8%
19%
14%
18%
24%
14%
11%
50% Independent Equipment
Finance Company
50 NEWSLINE Sep/Oct 2022
Fear, uncertainty and doubt are never
harbingers of a good M&A environ-
ment. That is the consensus, and there
is much truth in the consensus, gener-
ally speaking. However, in my opinion,
that is not the case as it relates to the
equipment leasing and nance market.
Side note: Throughout this article I
use the term "generally" or "generally
speaking.” I am not saying ALWAYS.
This reminds me of a recent court case
deposition where I was an expert wit-
ness. Opposing counsel challenged me about my denition
of "generally." I responded, "the opposite of not generally,"
which, for some reason, just angered him! Get the point? So
please don't send me emails about specic instances where
the result was not in line with generally or most often.
Generally speaking, it is always a good time for a bank
buyer to purchase a solid equipment nance company. I am
speaking of a non-strategic buyer, which in my book means
community banks that do not have an equipment leasing
and nance business. Community banks' commercial and
industrial assets are heavily concentrated in real estate.
For obvious reasons, high concentrations in any asset are
not optimal, and regulators nor shareholders look at such
concentrations favorably. Most community banks are also
sitting on a lot of cash they cannot put to work on loans,
especially non-commercial real estate, C&I loans and leases.
Furthermore, they admittedly do not excel at generating
them. On the other hand, equipment nance companies are
fantastic generators of C&I assets.
To follow are some examples of recent transactions and
projects that we were involved in during less-than-ideal eco-
nomic times (Covid, supply chain disruptions, ination-af-
fected assets, rising rates, etc.). In early 2021, the progressive
CEO of Peoples Bank out of Marietta, Ohio, acquired North
Star Leasing out of Vermont. In mid-2021, another brilliant
CEO of First Commonwealth Bank out of Indiana, Pennsyl-
vania, did a lift out of the Susquehanna Bank team to start
their foray into equipment nance. In mid-2022, another
visionary CEO of Trustmark Bank out of Jackson, Mississippi,
launched a denovo startup of a bank leasing business by
hiring a well-known bank-owned equipment nance leader.
Lastly, in the third quarter of 2022, Gulf Coast Bank & Trust
out of New Orleans, Louisiana acquired KLC Financial out of
Minnetonka, Minnesota.
I am certain you noted that each of these banks are located
in small geographical footprints and acquired national leas-
ing companies or platforms nowhere near their core mar-
kets. All were sitting on a great deal of cash and, of course,
found equipment nance as one solution to eectively
deploying their cash.
Let's now pivot to the likely future status of the M&A market
for equipment nance companies. The obvious headwinds
will be the continuation of the Federal Reserve’s tightened
monetary policy, abnormal supply chain issues, elevated
asset values and increasing interest rates to ght ination.
The Federal Reserve is on record saying that the risk of
recession is worth the price for reining in ination. Here are
some facts which come from my study of the historical ELFA
Surveys of Equipment Finance Activity or “SEFA” and its pre-
Bob Rinaldi
Rinaldi Advisory
Services
M&A Outlook Amid Ination,
Interest Rate Increases and
Potential Recession
Despite signicant headwinds in the economy, Bob Rinaldi explains
why mergers and acquisitions in the equipment nance industry will
not be negatively impacted and discusses how the market will continue
to be active.
By Bob Rinaldi
Sep/Oct 2022 NEWSLINE 51
cursor studies over the past 40 years. I will also cover this
data in a breakout session at the NEFA Funding Symposium
Conference.
Some facts gleaned from studying the past 40 years of eco-
nomic data and the SEFA industry data:
• Recessions have ALWAYS followed ination with the Fed
increasing short term rates.
• Increasing delinquencies and charge-os follow closely
behind the onset of recessions (maybe lagging by six
months at most).
• Increases in industry Pretax Spreads and Return on
Total Assets immediately follow on the heels of the
onset of recessions.
• Increases in delinquency and charge os are usually
followed by extended periods of historically low levels of
the same post-recession.
Since equipment nance transactions amortize in short
order and each new transaction is reviewed based upon its
own merits at the time of application, leasing companies
adjust to conditions reasonably fast. Granted, some compet-
itors (usually bank-owned) hold o raising rates longer than
necessary, but for them, it is a balancing act between need-
ing C&I assets, their intrinsic cost of funds and their cash lev-
els. Another thing that happens during any period of uncer-
tainty is that banks tend to pull in the reins on credit quality
and lending in general, especially to small businesses. Banks
never need an excuse to not make loans. I am just kidding!
Not really.
The equipment leasing and nance business has all the
attributes that make acquisitions by banks quite appealing
because as you know, the equipment nance industry does
well in good times and very well in counter-cyclical times.
Let's pivot again to the subject of supply and demand. By
supply, I mean supply of equipment nance companies to
be acquired. First some facts:
• There are roughly less than 700 independent leasing
companies (excluding pure brokers).
• There are roughly 5,000 commnity banks in the U.S. of
all sizes.
• Less than 2 percent (my opinion) of the 700 indepen-
dent leasing companies are "bank ready."
By "bank ready" I mean they have all the elements necessary
to withstand the scrutiny and shine in a formal exit process.
We are talking about maybe 14 independent equipment
leasing companies that are perhaps ready at any one time.
Consequently, a supply (14) and a demand (5,000) support
my initial comment at the beginning of this article... gener-
ally speaking, it is always a good time for a bank buyer to
purchase a solid equipment nance company.
Getting to the stage of what I call “bank ready” is a process
that can usually take two to three years. This process starts
with incorporating an exit strategy into the company's inter-
nal strategic planning. In other words, determining when the
principals want to ideally sell their company. By the way, I
am not a fan of the word “exit,” but it is applicable for maybe
one or more of the principals, but a non-strategic buyer is
not going to pay much of a premium if the top management
team will not be part of the business going forward. The prin-
cipals will be working as hard as ever to realize the scaling
to capture the earn-out dollars intrinsic in the original sale
price formula. This topic of “exit strategy planning” warrants
an entirely separate discussion. Therefore, I will follow this
article up with Part 2 in the next issue of Newsline which will
address exit strategy planning and will dig deeper into the
M&A process. The M&A process portion will focus on what
to avoid and how to succeed with a merger from the buyer
and seller perspective.
For additional insight into the synergies between commu-
nity banks and leasing companies, please refer to my multi-
part articles published in Equipment Finance Advisor over the
past few years:
• Community Banks Entering Our Industry - The Implications
• Community Banks in Our Industry: The Impact on Direct
Lessors
• Community Banks: Implications for Vendor Program
Lessors
ABOUT THE AUTHOR: Bob Rinaldi is President of Rinaldi
Advisory Services.
National Equipment Finance Association
52 NEWSLINE Sep/Oct 2022
After a very strong recovery in the U.S.
economy in 2021 following the pan-
demic-induced recession, growth has
slowed in 2022. High ination, rising
interest rates, ongoing supply chain
diculties, the Russian invasion of
Ukraine and weaker global economic
growth have all been drags. But the
economy continues to expand, as does
business equipment spending. Growth
is set to slow even further next year as
the Federal Reserve continues to ght
ination by raising interest rates. But
although recession risks are elevated
for 2023, PNC’s baseline outlook calls for continued eco-
nomic expansion next year, albeit with much weaker growth
and a softening labor market. Growth in business equipment
spending is also set to weaken, but should remain solid even
with higher nancing costs, given the tight labor market and
businesses’ need to improve labor productivity.
First, let’s address a misconception: The U.S. economy is
not in recession in the fall of 2022. The National Bureau
of Economic Research (NBER), a non-prot organization, is
the most widely accepted authority on dating recessions
and expansions in the U.S. economy. The NBER denes a
recession as “a signicant decline in economic activity that is
spread across the economy and that lasts more than a few
months.” To determine if the economy is in recession, the
NBER’s Business Cycle Dating looks at several economic indi-
cators, including personal income (excluding government
transfer payments) and consumer spending, both adjusted
for ination; employment; wholesale and retail sales, also
adjusted for ination; and output in manufacturing, mining,
and utilities. Using these indicators, in particular strong job
growth and rising consumer spending and personal income,
even after adjusting for high ination, the economy has
been expanding through the summer.
Notably, the NBER explicitly does not dene a recession as
two consecutive quarters of decline in real gross domestic
product, which is sometimes used as shorthand for a reces-
sion in the media. The NBER’s denition covers a broader
range of economic indicators, considers the depth of the
downturn, and is based on monthly, rather than quarterly,
data. Real GDP fell modestly in both the rst and second
quarters of 2022, but even so the economy is very unlikely
to meet the NBER denition of recession in the next few
months. Notably, an alternative measure of the size of the
economy that the NBER considers, real gross domestic
income (the income owing to households and businesses
from economic activity, adjusted for ination), increased in
both the rst and second quarters.
The biggest problem facing the U.S. economy in late 2022 is
high ination. Multiple factors have caused the highest ina-
tion in 40 years: Strong consumer demand coming out of the
pandemic, supported by government aid; very low interest
rates as the Federal Reserve aggressively loosened mone-
tary policy to support the recovery; supply chain disruptions
as businesses cut production during the pandemic and
have since been unable to catch up with strong demand; a
very tight labor market that has pushed up labor costs; and
Augustine “Gus”
Faucher
The PNC Financial
Services Group
Business Equipment Spending
Growth to Slow in 2023 as
Higher Interest Rates Weigh on
Economy
Gus Faucher, Chief Economist with The PNC Financial Services Group,
provides his economic outlook for the U.S. economy and an outlook
for CAPEX spending in the coming years.
Sep/Oct 2022 NEWSLINE 53
nally the Russian invasion of Ukraine that disrupted global
energy markets.
With ination running well above the Federal Reserve’s 2%
objective, the central bank has been aggressively raising
interest rates this year to cool o economic growth and
reduce inationary pressures. In addition to raising the fed
funds rate, the central bank’s key policy rate, from close to
0% at the beginning of 2022 to above 3%, the Fed has also
been reducing the size of its balance sheet by not rolling
over maturing long-term Treasurys and mortgage-backed
securities, putting upward pressure on long-term interest
rates. As a result, both short-term and long-term borrowing
costs have increased dramatically this year for both consum-
ers and businesses, weighing on economic growth.
The clearest evidence of this is in the U.S. housing market.
Single-family housing starts have fallen in ve of the past six
months, down by almost one-quarter. Sales of existing sin-
gle-family homes have dropped for seven straight months
and are also down by one-quarter. And house price growth
is also slowing rapidly as higher mortgage rates reduce
aordability. All of this is weighing on homebuilding-related
business equipment.
More sectors will weaken in 2023 as the Fed continues to
raise interest rates into next year. This will lead to slower job
gains, contributing to softer growth in household incomes
and spending. Other headwinds for the economy in 2023 will
be high ination that continues to weigh on consumer discre-
tionary purchases, an end to pandemic-related government
support, and a weakening global economy as high energy
prices remain a signicant drag, particularly in Europe.
As a result, PNC expects real GDP growth to slow from above
5% in 2021 to below 1% this year and next (Q4 to Q4 basis),
before picking up in 2024. Weaker growth will lead to a slow-
ing in job gains and a slight increase in the unemployment
rate over the next couple of years, to close to 4.5% by early
2024, up from a 50-year low of 3.5% in mid-2022. With slower
growth and reduced wage pressures, ination will gradually
ease to the Fed’s 2% objective by mid-2024.
While the probability of recession through the rest of 2022
remains low given the current strong labor market and
decent consumer fundamentals, recession risks are ele-
vated for 2023, as the impacts of higher interest rates con-
tinue to lter their way through the economy. PNC puts the
risk of recession over the next couple of years at around
45%, about double what it was prior to the Russian invasion
of Ukraine.
Although economic growth will be soft in the near term,
business equipment spending will outperform the overall
economy. PNC’s baseline forecast calls for growth in U.S.
real capital expenditures—investment in equipment and
nonresidential structures, adjusting for ination—of 3.5% in
2022, 4.2% in 2023, and 3.5% in 2024. Higher interest rates
will make it more expensive to nance investment. But with
millions of workers leaving the workforce in the wake of the
pandemic, a permanently tighter labor market post-pan-
demic will spur businesses to invest in equipment and tech-
nologies that will allow them to increase output without hir-
ing. In addition, investment in equipment related to energy
will increase as higher oil and natural gas prices following
the Russia-Ukraine conict spur development and produc-
tion. And investment for infrastructure-related equipment
will increase in the near term with the passage of the Build
Back Better law earlier this year.
Another source of strength will be transportation manufac-
turing equipment as the automakers gradually resolve their
supply chain problems and demand for new cars and trucks
remains strong. However, spending on construction equip-
ment will decline over the next couple of years as high inter-
est rates and reduced demand for oce and retail space in
the wake of the pandemic weigh on both residential (par-
ticularly single-family) and commercial construction. And
demand for business equipment from abroad will take a hit
from a likely recession in Europe as the continent grapples
with very high ination and reduced energy supplies from
Russia.
Risks to this outlook are to the downside. A U.S. recession in
2023 would lead to a decline in business equipment spend-
ing. Continued high ination would be a particular problem,
as it would be an even greater drag on consumer spend-
ing and would also force the Fed to raise interest rates even
more aggressively, making it more expensive to nance
equipment purchases. A strong dollar would make U.S.
exports of business equipment overseas more expensive.
The biggest upside risk would be a quick end to the war in
Ukraine, which would reduce inationary pressures, allow-
ing the Fed to be less aggressive in raising interest rates; it
would also support stronger global economic growth and
business equipment exports. However, a fast end to the war
in Ukraine would reduce global energy prices and be a neg-
ative for energy-related equipment.
ABOUT THE AUTHOR: Augustine “Gus” Faucher is Chief
Economist with The PNC Financial Services Group.
National Equipment Finance Association
54 NEWSLINE Sep/Oct 2022
Check out the “About Us” page on the
NEFA website. Under “Our Purpose” the
rst key point is: “Connecting members
by hosting national and regional events
that provide venues for valuable net-
working opportunities.”
The key words are, “Connecting Mem-
bers.” Let’s face it, a Zoom call meets a
need, but it just doesn’t compare with
walking downtown Nashville – the Music
City – with your fellow NEFA colleagues,
experiencing world-class music and
making memories along the way.
Great business partnerships are built on great business rela-
tionships. It’s the age old saying, “People do business with
people they know and trust.” It is all about making meaning-
ful connections and nurturing those relationships along the
way. How we connect with others matters.
I had a deep dive into connections when I ew from my home
in Minneapolis to speak at an event north of Milwaukee,
Wisconsin. Upon landing, I rented a beige Ford Taurus from
Hertz and proceeded to drive north through Milwaukee. I
suddenly realized that I had stumbled onto the Harley-Da-
vidson Motorcycle 100-year Anniversary Celebration. There
were over one million hardcore, tattooed, leather clad, Har-
ley riders from throughout the world attending the event.
I am not a Harley kind of a guy, and I never dreamed of own-
ing a Harley. I am more of a pontoon boat kind of guy. But
NEFA – A Community of
Meaningful Connections
NEFA Funding Symposium keynote speaker Mark Scharenbroich, and
author of the book, Nice Bike: Making Meaningful Connections on
the Road of Life, shares his insights into why the way we connect with
others really matters.
By Mark Scharenbroich
that day in my beige Ford Taurus, I wanted a Harley, and I
wanted to be a part of that Harley tribe. I wanted to see my
wife Susan on the back of a Harley wearing black leather…
OK, that is a dierent issue.
I am a curious person, so I pulled over to check out some of
the venues that were loaded with Harley riders. I remem-
ber passing one guy standing by his midnight black Fatboy.
He looked like he was right out of Game of Thrones. Huge,
big beard with Harley tattoos, standing by his Harley with a
“Don’t mess with me” look on his face. I watched as a pass-
erby strolled past his motorcycle, nodded at the Harley guy
and said, “Nice Bike!”
The Game of Thrones rider gave the passerby a big smile
back and a conversation ensued about the bike, the rider,
how the rider’s dad introduced him to Harley, and how it
was their father/son bond. I suddenly realized that it wasn’t
about the Harley; it was about the connection. It’s like the
line from the new Top Gun Maverick lm with Tom Cruise, “It’s
not the plane, it’s the pilot.”
As I continued to walk through the Harley venue, I kept
hearing the phrase, “Nice Bike” repeated over and over, and
more times than not a conversation followed. “Nice Bike”
has become my metaphor about how we connect with oth-
ers. As TSA warns us at the airport, “If you see something,
say something.” Well, that works on the positive side too. If
you notice something interesting, exceptional or noteworthy
about someone else – friend or stranger – say something:
“Nice Bike.”
Mark
Scharenbroich
Scharenbroich &
Associates
Sep/Oct 2022 NEWSLINE 55
Nice Bike means “I see you. I hear you. I value you. This
organization, this community and the world is a better place
because you are in it.” Nice Bike. It’s a gold star on your
paper in elementary school. It’s an invitation to sit at the cool
kids’ lunch table in middle school. It’s the high school teacher
remembering your name on the second day of classes. It’s a
smile from a stranger. It’s a supervisor taking the time to tell
you how much you mean to an organization.
My “Nice Bike” metaphor is supported by three actions:
Acknowledge, Honor and Connect.
• Acknowledge: To be fully present with others. You must
be present to win.
• Honor: To create memorable experiences for others.
Make a deposit in their memory bank.
• Connect: Own your impact in this world. Your positive
impact on others leaves a legacy.
To acknowledge others, it helps to be in the moment and
focus on them. How many times have you been introduced
to another person and 60 seconds later you forgot their
name? You have only one job when you meet a new person
… get their name, repeat it in your mind, attach the name
with their face or a memorable hook and use their name in
your conversation with them.
As Dale Carnegie said, “Names are the sweetest and most
important sound in any language.”
To honor others, you create positive, memorable expe-
riences for them – both large and small. During the Covid
pandemic, our son Matt and his wife Kate lived in a small
apartment across from a trauma center in Brooklyn, NY.
At 7:00 pm every evening, they joined all their neighbors
as they opened their windows and banged pots and pans
together to honor all the health care providers who stepped
outside the trauma center to accept the appreciation from
their fellow New Yorkers.
During the beginning of the pandemic in 2020, when every-
one was isolated in their own homes, people went out of
their way to thank everyday heroes: grocery store clerks,
postal carriers, delivery people, educators and health care
professionals. People who rarely heard the words, “thank
you” felt honored for their dedication and spirit to help oth-
ers. It is a wonderful action to carry forward, beyond the
pandemic and honor everyday heroes.
As Mary Kay Ash shared, “We treat people like royalty. If
you honor and serve the people who work for you, they will
honor and serve you."
To connect with others is to be intentional – going out of
your way and making the lives of others just a little better.
Sometimes you will never fully know how much kind words
or an act of kindness will impact the lives of those around
you.
I spoke for the National Salon Association at a gathering of
more than 500 salon owners from across the country. While
there I met David Wagner, the CEO of Juut Salons. On his
business card, instead of “CEO”, David’s card read, “Day-
maker.” I asked David about his title.
He shared, “A few years ago, I had a regular client come in
for a service. I remember being very present as I worked on
her hair. We had an engaging conversation, and at the end
of her session, she looked absolutely great. I told her how
wonderful she looked. She gave me a hug and went on her
way.”
“A week later, I received a card in the mail from this same
client. She told me that the day she came in for her appoint-
ment, she had planned on taking her own life. She had hit
some very dicult times and was extremely depressed. She
shared that she wanted to look nice when people found her
body. However, after our interaction, I had made her day. I
had taken an interest in her and made her feel vibrant, and
it was just enough to help her turn the corner and reach out
for professional help. She thanked me for being her ‘Day-
maker.’ At that point, I changed the title on my business card
from CEO to Daymaker. It’s more than running a business.
It’s more than styling people’s hair. It’s about nding ways to
help people discover their own beauty and connecting with
each person each day.”
David Wagner did more than make the woman feel good
with a compliment. He acknowledged her as more than “just
another customer” and he honored her by taking a sincere
interest in her, and he connected with her by creating a
“Daymaker” experience.
To “Nice Bike” others is to be compassionate for others. Con-
dence without compassion is arrogance. Condence with
compassion is a true connection.
NEFA is known as a community where members make con-
nections. Make your actions meaningful by acknowledging,
honoring and connecting with your fellow members.
Nice Bike… NEFA!
ABOUT THE AUTHOR: Mark Scharenbroich – NEFA Funding
Symposium Keynote Speaker – is an Emmy award winner
and the author of Nice Bike - Making Meaningful Connections
on the Road of Life. www.NiceBike.com
National Equipment Finance Association
To connect with others is to be intentional –
going out of your way and making the lives of
others just a little better.
56 NEWSLINE Sep/Oct 2022
NEFA EVENTS CALENDAR
DIAMOND
Amur Equipment Finance
BankFinancial Equipment Finance
Channel
LTi Technology Solutions
Soli
PLATINUM
Financial Pacic Leasing, Inc.
Great American Insurance Group,
Specialty Equipment
Providence Equipment Finance, a
Division of Providence Bank & Trust
Quality Leasing Co., Inc.
SCJ Commercial Finance Services
GOLD
Centra | 4 Hour Funding
Navitas Credit Corp
North Mill Equipment Finance, LLC
WELCOME NEW MEMBERS!
SILVER
Apex Commercial Capital
Dakota Financial, LLC
Dedicated Financial GBC
ECS Financial Services, Inc.
Leasepath
Marlin Capital Solutions
NewLane Finance
Northteq
Oakmont Capital Services
Pawnee Leasing Corporation
RTR Services, Inc.
BRONZE
Liventus
Meridian Equipment Finance
Orion First Financial, LLC
Auto Funding Corporation
Funding Source
Bevel Financial Inc.
Broker/Lessor
Blue Street Capital, LLC
Broker/Lessor
Bluen Capital, LLC
Broker/Lessor
Capnders
Broker/Lessor
Corporate Freight Savers
Service Provider
Experian
Service Provider
FirstMark Financial Services
Broker/Lessor
Jennings Haug Keleher McLeod
Service Provider
OCB Accountants, Bookkeepers, &
Consultants
Service Provider
Titan Asset Purchasing, LLC
Service Provider
Vartana
Broker/Lessor
VenSource Capital, LLC
Broker/Lessor
Wallwork Financial Corporation
Funding Source
neFACTS
National Equipment Finance Association
2021-2022 NEFA PARTNERS
New York City Tastings Event
December 2022
2023 Finance Summit
March 22-24, 2023
Intercontinental Hotel
San Diego, CA
2023 Funding Symposium
October 4-6, 2023
JW Marriott San Antonio Hill Country Resort & Spa
San Antonio, TX
Sep/Oct 2022 NEWSLINE 57
2022 FUNDING SYMPOSIUM EXHIBITORS
(AS OF 9/30/22)
AILCO Equipment Finance
Group, Inc.
American Lease Insurance
Amur Equipment Finance
Apex Commercial Capital
AvTech Capital
Balboa Capital
BankFinancial Equipment
Finance
Baystone Governament
Finance, KS StateBank
Blue Bridge Financial, LLC
Boston Financial & Equity
Corporation
Centra | 4 Hour Funding
C.H. Brown Co., LLC
Channel
CLFP Foundation
Constellation Financial
Software
Copernicus
Dedicated Financial GBC
Dedicated Funding, LLC
Dext Capital
ECS Financial Services, Inc.
Experian
Equipment Finance Advisor
Financial Pacic Leasing, Inc.
Frist Federal Leasing
Great American Insurance
Group
Hanmi Bank
instaCOVER
JB&B Capital LLC
LEAF Commercial Capital
Leasepath
Liventus
LTi Technology Solutions
Macquarie Specialized &
Asset Finance
Marlin Capital Solutions
Meridian Equipment Finance
Monitordaily
Navitas Credit Corp
NewLane Finance
North Mill Equipment Finance
Northteq
OCB Accountants,
Bookkeepers, and
Consultants
Odessa
Orion First
Pawnee Leasing Corporation
Quality Leasing Co., Inc.
Quiktrak
ROK Financial
Sandhills Global
SCJ Commercial Financial
Services
Security Credit Services, LLC
SmartVault Corporation
Soli
Tamarack Technology
TaxConnex
VFI Corporate Finance
Wallwork Financial
2022 FUNDING SYMPOSIUM SPONSORS
(AS OF 9/30/22)
Amur Equipment Finance
AP Equipment Financing
Apex Commercial Capital
BankFinancial Equipment
Finance
Blue Bridge Financial, LLC
Centra | 4 Hour Funding
Channel
Chris Walker Education Fund
Cohn & Dussi, LLC
Dakota Financial
Dedicated Financial GBC
ECS Financial Services, Inc.
Financial Pacic Leasing, Inc.
Leasepath
LTi Technology Solutions
Marlin Capital Solutions
North Mill Equipment Finance
Northteq
Oakmont Capital Services
Pawnee Leasing Corporation
Platzer, Swergold, Goldberg,
Katz & Jaslow, LLP
Quality Leasing Co., Inc.
Rinaldi Advisory Services
ROK Financial
RTR Services, Inc.
Securcor Financial Group
Soli
STRIPES Leadership
National Equipment Finance Association
58 NEWSLINE Sep/Oct 2022
When authoring the article, “Continu-
ing Education and Certication: Why it’s
Important to Stay on Top of Your Game”
back in 2013, one quote stood out to
me that still resonates today. To para-
phrase, “Education in your own career
is the only asset that will pay you div-
idends in any market conditions and
will never lose value; nor can it be
taken from you.”
There are various avenues to gain
education within our industry and the
Foundation is supportive of all of them,
but what sets the Certied Lease &
Finance Professional Foundation (CLFP)
apart is that we oer a designation at
the end. The four letters that are added
after your name in your email signature, LinkedIn or busi-
ness card shows colleagues and clients that you mastered
the commercial equipment nance industry knowledge by
passing a rigorous, eight-hour exam.
The question I receive most when at industry events is, “Why
should I be a CLFP?” and I love it, especially when someone
has been in the industry for several years and is almost con-
frontational about it. Usually there are two responses that
I will give: 1) to be cheeky, I might say, “Why not?”; or more
frequently, 2) if you ask all of the almost 1,200 CLFPs across
the world, you’re going to get a dierent answer. It’s within
the individual to decide whether the designation is some-
thing that is meaningful, and it’s certainly not for everyone.
However, I would be remiss not to requote Terey Jennings,
CLFP, President of Financial Pacic Leasing, “If everyone in
our company went through the process, would it make us a
better company? The answer is always ‘yes’.”
The next question I receive is how to become a CLFP. It all
begins with the Body of Knowledge (BOK), which is the doc-
ument that if anyone asked what the designation is about,
you would hand it to them (it’s also in our toolbox on our
website). The BOK is what some lovingly refer to as the Alpha
and Omega of the designation. Every year, a committee
looks at the BOK and determines what (if any) changes need
to be made. It’s important that as our industry evolves, that
the content and material that we provide stays relevant.
Once those changes have been presented to and approved
by the Board of Directors, The Certied Lease & Finance Pro-
fessionals’ Handbook is updated in cooperation with Debo-
rah Reuben, CLFP of TomorrowZone. This is the next item
that any potential candidate will need in their toolbox. It’s
approximately 375 pages and goes through the following
topics:
• History and Overview of the Industry
• Financial and Tax Accounting
• Leasing Law
• Pricing
• Sales and Marketing
• Credit
• Documentation
• Funding and Operations
• Portfolio Management
After reading the book, there are two options. The rst is
to take the test. This method is extremely rare (less than 2
percent of CLFPs do not attend an educational session) but
is certainly doable. The second is to attend the Academy for
Lease & Finance Professionals (ALFP). This two- or three-day
class was created in 2015 in order to prepare an individual
more fully for the test. Every section is covered by subject
matter experts in the eld and are oered both virtually
and in-person located throughout the United States and
throughout the year. The class also oers students a sample
exam with more than 100 questions. The success of rate for
those who attend the class is approximately 15 to 20 percent
higher than those that self-study and the demand for it has
increased drastically from four classes in 2015 to 20 classes
scheduled in 2022.
The nal step is the exam, and it has evolved greatly from
what it once was. Back in 2012, when I took over the Founda-
tion, the exam was over 100 pages of printed material that
was to be completed in eight-hours and then it was shipped
o to various CLPs (the Foundation added ‘F’ for nance in
2015) for grading.
This led to some issues; rst, grading was not objective. One
person could grade an exam a certain way, while another
person would grade it dierently. Another issue was that it
could take up to six months to nd out whether you passed
or failed. This was not sustainable – who would want to
retake a test six months after studying? Finally, in 2015, we
began oering the exam using an online platform; however,
this still required a person to proctor it, which meant that
it could only be done at certain times, locations, etc. So,
in 2020, we moved to an online proctoring solution. It’s a
CERTIFIED LEASE & FINANCE PROFESSIONAL FOUNDATION
The CLFP Designation – Who Me?
By Reid Raykovich, CLFP
Reid Raykovich,
CLFP
CLFP Foundation
Sep/Oct 2022 NEWSLINE 59
Chrome extension that the test-taker must download, and it
monitors the individual, the computer screen and the envi-
ronment to deter any cheating.
The online proctor has proven to be extremely benecial
because individuals may now take the test whenever they
want, and wherever they want. The individual will also nd
out within two business days whether they passed or failed.
However, it has not come without frustration. Banks and
larger companies won’t allow the extension or have a re-
wall which blocks the functionality and creates a disastrous
user experience. This has led us to strongly encourage indi-
viduals to use a personal laptop which has worked perfectly.
While we have covered the steps to becoming a CLFP, there
is also the item of maintaining the designation. In year’s past,
the Foundation would require an CLFP to submit paperwork
every four years detailing the conferences/sessions they had
attended, or volunteer work they did within the industry.
There were so many problems with that: many CLFPs don’t
have the opportunity to attend industry events; who kept
track of the information; how did the Foundation verify the
information?
Therefore, the annual recertication was created and con-
sists of three important items. The rst is the annual dues
which is $155 and has not increased in over 10 years. The
second is the pledge to abide by the Standards of Con-
duct. Finally, the CLFP must read about changes that have
occurred in our industry over the past year and take a quiz
on it. This information and quiz are procured by the Recerti-
cation Committee that determines the topics for the year.
For example, the 2023 recertication has sections devoted
to Section 1071, revisiting the Hell or High-Water Clause, and
supply chain issues and equipment residual ramications.
In closing, the Foundation continues to grow exponentially,
but more importantly, our retention rate is always over 96
percent. We are proud that our CLFPs believe in what we
do and see the importance in it. We are looking forward to
having the rst Australian CLFP designation later this year,
or early 2023, and also to kick o the Canadian designation
which will hopefully be available in 2024.
ABOUT THE AUTHOR: Reid Raykovich, CLFP is Chief Execu-
tive Ocer of CLFP Foundation.
National Equipment Finance Association
CERTIFIED LEASE & FINANCE PROFESSIONAL FOUNDATION
We are looking forward to
having the rst Australian CLFP
designation later this year, or
early 2023, and also to kick off the
Canadian designation which will
hopefully be available in 2024.
LEGAL
60 NEWSLINE Sep/Oct 2022
California & New York State Truth-
in-Lending Law Update: What You
Don’t Know CAN Hurt You — The
Time to Act is NOW
Following an extended process of com-
mentary, lobbying and rulemaking,
California now has its truth-in-lending
(TIL) law and implementing regula-
tions on the books. New York is close
behind, as the New York Department
of Financial Services (NYDFS) published
revised proposed regulations in Sep-
tember 2022 that are subject to public
commentary through the end of Octo-
ber 2022. While industry members
have pushed to make the implement-
ing regulations in these two states as
consistent as possible — and while
NYDFS has admitted to consulting
directly with the California Department
of Financial Protection and Innovation
(DFPI) — NYDFS expressly declined to
conform its regulations to those of Cal-
ifornia and proposed signicant new
changes to its regulation that, if imple-
mented, will present new compliance
challenges for the industry. Commer-
cial lenders and brokers should there-
fore act immediately to establish inter-
nal systems for complying with both
laws and those from other states that
are on the horizon. Given the complex-
ity of the state regulations, industry
players should consult with counsel to ensure compliance.
Nonetheless, we address some of the common questions
that have arisen out of the regulatory schemes set forth by
both states.
When do the laws in California and New York take
eect?
The California law takes eect on December 9, 2022. New
York’s implementing regulations are open for public com-
ment until October 31, 2022, but will not take eect until six
months after the regulations are nalized.
What do the TIL laws require?
Both New York’s and California’s TIL laws require that written
disclosures be made to the potential borrower (recipient) in
a separate form (Disclosure), at or before the time a specic
commercial nancing oer is extended to a recipient. The
Disclosure must be presented to the recipient as a separate
document from any other contract, agreement, or other
disclosure document, but may be mailed or transmitted in
a package that contains other documents. Each law, along
with implementing regulations, indicates exactly what must
be disclosed based on the transaction type (as set forth in
the law). The Disclosure must generally contain: the total
amount nanced, the estimated APR, nance charge, total
repayment amount, the estimated total payment amount,
the payment terms, the estimated term, prepayment infor-
mation, a description of other fees and charges, a descrip-
tion of the collateral with security interests listed (New
York), and information on broker compensation (New York).
Importantly, the Disclosure must be signed by the recipient
and returned to the provider prior to the proceeding further
or consummating the commercial nancing. Finally, both
states required a separate itemization form (which does
not have to be signed) that details to whom certain of the
nanced funds are paid (e.g., vendors, brokers, etc.)
Did California and New York nally provide a model
Disclosure Form?
No. Unfortunately, neither state provides a model Disclo-
sure. Both, however, require very specic formatting of Dis-
closures — dictating columns, rows, and fonts to be used
— as well as specic language that must be included in the
various sections of the form depending on the type of trans-
action. Signicantly, New York’s latest round of proposed
regulations altered the format of the Disclosure for several
types of transactions by adding additional rows that are not
required in California. Although there are instances where
the provider may give additional information and explana-
tion, the provider should strictly adhere to the exact wording
mandated by the regulations.
Can I structure transactions to avoid having to provide
a Disclosure?
The laws provide a number of exemptions based on who
is lending (e.g., nancial institutions, motor vehicle dealers,
technology service providers & tech companies), the type of
transaction involved (secured by real property, pursuant to
Farm Credit Act), the number of transactions in a year (ve or
less in a year) and the amount of the transaction ($500,000
for California; $2,500,000 for New York). If you cannot meet
any of the above exemptions, the most straightforward way
to avoid having to comply is to structure the transaction as
lease. In this regard, both laws exempt true leases under
UCC Article 2A.
Are bank subsidiaries exempt?
No. There is no exemption for bank subsidiaries in either
New York or California. In fact, NYDFS expressly declined to
provide such an exemption, stating that the New York law
“does not provide exemptions for subsidiaries of federal-
By Robert Hornby and Cory Simmons
Robert Hornby
Chiesa Shahinian
& Giantomasi PC
Cory Simmons
Chiesa Shahinian
& Giantomasi PC
Sep/Oct 2022 NEWSLINE 61
LEGAL
ly-chartered banks or foreign banks, among other exempted
entities, to the disclosure requirements.”
Is the requirement for making the Disclosure based
upon where the recipient is located, where the provider
is located or where the transaction is negotiated?
Potentially all three. California and New York both now have
so-called “jurisdictional nexus” requirements in their regula-
tions that determine when a Disclosure is required. Califor-
nia requires a Disclosure where the recipient is “principally
directed or managed” from that California. While the pro-
posed New York regulations also require disclosure where
a recipient is “principally directed or managed” from New
York, the proposed New York regulations drastically expand
the scope of jurisdiction by requiring a Disclosure anytime
(i) the provider is principally directed or managed from New
York or (ii) if the transaction was negotiated from a location
in New York. The only exception is that, if the state where
the recipient is principally directed or managed has imple-
mented its own state TIL law (such as California), that state’s
law will govern over New York (so long as a disclosure is
provided). Accordingly, this extraordinary jurisdictional pro-
vision will eectively require New York based lenders to pro-
vided Disclosures in all 50 states.
Who prepares the Disclosure (and what about
discounting?)
A “provider” or “nancer” is responsible for preparing the
Disclosure and must provide them to the broker for trans-
mission to the recipient. Who exactly qualies as a “pro-
vider” or “nancer,” while not entirely clear, is set forth in
both laws and generally refers to the entities which extend
or provide a specic oer of commercial nancing to a recip-
ient. In cases where a broker is documenting the transaction
on their own paper and/or is providing the initial funding,
the broker is responsible for preparing and providing the
Disclosure, even if the transaction will later be discounted.
Lenders who are buying paper should not only get a repre-
sentation and warranty that the proper disclosure has been
made but, where practical, they should review the disclosure
forms the broker will use to ensure that its is compliant with
the laws.
Are there any other issues I should be concerned about
when a transaction is assigned after a Disclosure is
made?
Yes. New York’s proposed regulations inserted a notice
requirement where there is an assignment, sale, or transfer
of servicing. Specically, the “transferor servicer” is required
to provide notice to the recipient no less than 15 days before
the eective date of the transfer and the “transferee servicer”
is also required to provide notice within 15 days after the
eective date of transfer. The written notice must include
the eective date of transfer, the contact information for the
transferee and transferor servicer, the date that the trans-
feror servicer will cease accepting payments and the date
the transferee servicer will begin accepting payments, and a
statement that the transfer of servicing does not aect any
term or condition of the commercial nancing agreement.
The regulations also provide the recipient with a safe har-
bor as to payments, mandating that a provider not consider
a recipient’s payment late (or declare a default) if, up to 60
days following the transfer, the original servicer receives
payment from the recipient. California does not have a simi-
lar notice of transfer requirement.
Is a separate disclosure required each time the terms
of the proposed nancing change?
Yes. A new disclosure is required any time the terms of a
commercial nancing contract are amended, supplemented,
or changed, prior to the recipient agreeing to the changes,
if the resulting changes to the contract would result in an
increase to the annual percentage rate. This would include
situations where the interest rate has changed between the
time of the initial Disclosure and the closing of the trans-
action. Although there are provisions for inadvertent errors
which require certain notices to the recipient and for “tol-
erances” as to certain gures, a provider should not rely on
those provisions where the terms change and should pro-
vide a new disclosure. Note that there is an exception in both
the California and New York regulations that allows for only
one Disclosure if multiple oers are extended to a recipient
and the recipient is allowed to choose which nancing they
want. However, the practical application of this approach is
unclear, as it may create confusion with the recipient as to
what is or is not a specic oer of commercial nancing.
What obligations do brokers have under the laws?
The regulations in both states anticipate that brokers will
transmit Disclosures to the recipients and set up a structure
for the provider to eectively police the broker. A broker
is not liable for the contents of the Disclosure if the broker
transmits the Disclosure “as is” or “unaltered” to the recipi-
ent and the broker provides the nance company with proof
of transmission. Likewise, brokers are prohibited from mak-
ing certain disclosures (e.g., rate, price, cost of nancing) to
the recipient prior to the recipient receiving the Disclosure.
The regulations for both states put a further onus on the
nancing company in relation to the broker relationship,
requiring that the nance company: (i) put in place “con-
tractual requirements that brokers timely provide” docu-
mentation that they transmitted the Disclosure; (ii) timely
investigate facts would put the nance company on notice
that the broker has not provided the Disclosure; and (iii) dis-
continue relationships with any brokers who do not comply
with their obligations under the law. Therefore, both brokers
and nance companies should be cognizant that they have
their own unique duties vis-à-vis each other under the laws
and should ensure they are complying independently of one
another.
What other states do I need to worry about?
In addition to New York and California, Utah has also passed
legislation requiring nancial disclosures in commercial
nance transactions. Utah’s law will go into eect on January
1, 2023 but will generally exempt many of the transactions
in the equipment nancing industry. That being said, the law
contains a registration requirement which will likely require
you to register even if your transactions are exempt. Legis-
lation requiring enhanced disclosures has been introduced
but not yet passed in Connecticut, New Jersey, Maryland,
Virginia, North Carolina, Mississippi, and Missouri. We are
seeing a nationwide trend towards requiring nancial dis-
closures in commercial nance transactions and this area
continues to develop.
ABOUT THE AUTHORS: Robert Hornby, is Chair, Equipment
Leasing & Finance, and Cory Simmons is Associate for Chiesa
Shahinian & Giantomasi PC.
National Equipment Finance Association
62 NEWSLINE Sep/Oct 2022
ASSOCIATION
Meet NEFA's New Members
KING COMMERCIAL CAPITAL, LLC
Gerald King: King Commercial Capital, LLC is located in Fort
Wayne, IN and was launched in 2013. The brokerage has one
employee who works along with me and I am President of
the company. I eventually aim to add one or two loan o-
cers, and another processer. The company works with cli-
ents across the U.S. and Canada.
Prior to launching the company, I had worked in the residen-
tial mortgage eld for 13 years, until 2009 when the Great
Recession hit. I was out of the mortgage business four years
and wanted to get back into the nance arena. On the advice
of a friend, I researched the equipment nance industry and
then I made the biggest leap you can imagine. I didn’t have
any clients, lenders or vendors. It started completely from
scratch, but somehow, I landed on my feet. After more than
nine years in the industry, I love every minute of it. My expe-
rience in the mortgage nance industry was of considerable
help to me as was joining two associations, and I also con-
nected with a mentor.
King Commercial Capital is a generalist in terms of its clients.
King Commercial Capital has two niches, one within the
transportation sector and another within the manufacturing
sector. I am focusing on the manufacturing. I want to grow
that aspect of my business.
My goal in joining The National Equipment Finance Associ-
ation (NEFA) is to nd additional funding sources to serve
those niches.
I’m going to attend the conference in Nashville, TN. I have
been aware of NEFA for quite some time. I was recently at
another organization’s conference and a lender suggested
I join NEFA.
King Commercial Capital focuses on equipment nancing,
but has provided additional services for our existing clients
including invoice factoring, working capital loans and equip-
ment insurance.
My favorite part of working in the industry is helping small
and mid-size businesses grow.
You can hear it in the owners’ voices when they thank you
for helping them. When you do a good job and have helped
a small business grow, and they come back to you – it’s price-
less.
SMARTVAULT
Ivyson Donnie: Headquartered in Houston, TX, SmartVault
enables over 30,000 businesses and their clients – over 2
million people – to adopt a digital, compliant and automated
document workow. SmartVault’s integrated document
management and vaulting solution is built to empower the
equipment leasing and nance professionals and their cli-
ents. It does this by helping businesses:
Save time and money by streamlining workows. Stan-
dardize and digitize how you collect, manage, and share
contracts, loan documents, titles or otherwise with software
that’s built for your unique security, compliance and work-
ow needs. SmartVault empowers you to work smarter with
unlimited storage and easy access, so it scales as your busi-
ness grows. Plus, our security measures and access controls
protect your data with the highest standards.
Future-proof their business by going paperless. Smart-
Vault lets you and your clients upload, access, delete and
share les from any web-enabled device. With SmartVault’s
customizable Request List feature, business users can create
a document request list requesting your clients to upload
the exact documents you need. Say goodbye to chasing doc-
Newsline shines a spotlight on some of the equipment lessors,
funding sources, brokers and services providers that have chosen
to join the association during the year. Newsline asked four new
members to share an overview of their businesses and what led them
to join NEFA.
Sep/Oct 2022 NEWSLINE 63
ASSOCIATION
uments and hello to peace of mind; SmartVault takes care
of that for you.
Increase customer satisfaction and collaboration. A cus-
tom-branded, online portal gives your clients a secure, easy
and professional way to collaborate with you from wherever
they’re located. It’s easy to invite clients to the portal, and
they can access the portal directly from your website. Cus-
tomizable folder templates automatically put the right fold-
ers in each client portal, making onboarding a breeze.
Quickest route to signature. Create a smooth digital lend-
ing experience and get deals done faster by giving clients the
option to eSign loan contracts and documents, directly from
their mobile or desktop devices. Securely sign, create, store
and manage the authoritative copies of your digital assets
with SmartVault’s Certied Vault feature.
Through a partnership with Intuit, SmartVault is widely rec-
ognized as an intuitive cloud solution focused on reducing
risk and improving client eciency while creating a paper-
less workow. While any business can benet from Smart-
Vault, most users have compliance-related mandates that
drive them to nd an integrated solution likes ours. Smart-
Vault’s customers include accounting, equipment leasing
and nance, security and alarm, and automotive and nan-
cial services—to name a few. SmartVault’s mission is simple:
We aim to build products that make people productive and
happy!
SmartVault elected to join NEFA because we see it as the
premier association driving the exchange of information
around the equipment leasing and nance industry. There
are numerous benets that we anticipate from the joining
the association; however, we’re just excited to play our role
in assisting companies through the transformation from
paper transactions to digital processes.
SmartVault understands that the need to make life easier
through technology is important and we aim to achieve that
with our solution. We were rst introduced to NEFA by a
former board member who appreciated our interest in the
industry and saw a lot of value in our overall mission. We
hope to make an impact!
SPECTRUM FUNDING GROUP LLC
Nancy Sacks: Spectrum Funding Group LLC is located in
Mission Viejo, CA. The company provides equipment nance,
working capital loans and real estate investment loans. Prior
to becoming a lender, I was in the aerospace industry pro-
viding metal for the Lockheed Martin F-35 program. I con-
nected to past relationships with CNC machine shops to pro-
vide capital to the small to midsize machine shops across
the country.
As investment real estate lenders, the company works with
many contractors and developers to service their need for
construction equipment of all types. Spectrum Funding
Group is also a FedEx contractor working in the linehaul
space and has helped many contractors in the FedEx and
Amazon space that found challenges going through their
banks for capital expenditure nancing. Robert and I have
been in the lending space for nearly 30 years combined,
have ve beautiful boys between us and our most spoiled
child is our male labradoodle Chewie.
Spectrum Funding Group is a nancial partner to the small
business community. We are committed to our customers’
success and protability so that we may grow our business
relationship together. Our sta will strive to provide the
most competitive exible nancial options to t each unique
scenario, customized for each client. We treat our clients
with a mutual respect in the friendliest manner, earning con-
dence that leads to return and repeat clients.
Ivyson Donnie
Director, Global Sales and
Business Development
SmartVault
Nancy Sacks
President
Spectrum Funding Group LLC
Brian Greer
Partner & Chief Revenue
Ocer
TaxConnex
Gerald King
President
King Commercial Capital, LLC
ADVERTISER INDEX
ASSOCIATION
64 NEWSLINE Sep/Oct 2022
I was originally referred to NEFA by CH Brown who spoke
so highly of the NEFA membership and how friendly, expe-
rienced and helpful everyone involved in the organization
can be. We immediately knew that NEFA was something that
we had to be a part of. The main attraction to NEFA for us
was the community and our ability to share and learn within
that community. We have already created some valuable
relationships and had a great time at the Angels game with
Chad Sluss, who put on a great event and supplied us with
plenty of wine! We look forward to contributing back and
networking within NEFA family.
TAXCONNEX
Brian Greer: Sales tax is tricky, especially for businesses in
the equipment nancing industry. Based in Alpharetta, GA,
TaxConnex specializes in fully managed sales tax compli-
ance services including consulting services, nexus studies,
tax calculation engine advisory, registrations, lings and
payments, tax calendar management, notice resolution,
custom reports, and more! When you outsource with Tax-
Connex, you get true white-glove service, a dedicated prac-
titioner, and monthly ad hoc support included. This practi-
tioner serves an extension of your team without the cost or
resources of having an in-house sales tax manager would
require. Having a dedicated practitioner means that you
have the support you really need.
Founded in 2006, TaxConnex serves clients across the globe
to manage their sales tax obligations. TaxConnex makes
sales tax compliance less taxing on you, which means you
get to focus on what your business does best while we take
care of the rest. Leave all the burden, liability and risk of
sales tax compliance to us.
TaxConnex recently joined the National Equipment Finance
Association (NEFA) because we understand there are an
abundance of businesses in the equipment nancing indus-
try that struggle to understand and access the most current
sales tax information. Sales tax is complicated – but the lia-
bility of getting the correct tax rates, ling and remitting on
time falls on the business. We are experts in sales tax com-
pliance, and members of NEFA can rely on us.
We are very excited to attend and exhibit at our rst NEFA
event, the Funding Symposium, in Nashville, TN. We look for-
ward to connecting with and helping businesses that have
a multi-state sales tax obligation. We invest into providing
ongoing sales tax education through webinars, whitepapers,
eBooks, blogs, and beyond because sales tax regulations are
constantly evolving. Becoming members of NEFA means that
we can share this information with other members. Several
of our existing clients are also members of NEFA and this
gives us the opportunity to connect in person with them
through NEFA networking events, conferences and exhibitor
opportunities.
National Equipment Finance Association
American Lease Insurance ..................25
Amur Equipment Finance ....................42
Apex Commercial Capital .....................29
BankFinancial Equipment Finance ....14
Boston Financial & Equity Corp..........24
Channel ......................................................IFC
CMS Technology Partners ....................26
Cohn & Dussi ............................................32
Constellation Financial Software ........18
Dakota Financial .......................................33
Dext Capital .............................................IBC
Financial Pacic Leasing ........................ 28
GreatAmerica Portfolio Services &
GreatAmerica Financial Services ......... 3
instaCOVER ................................................31
Key Equipment Finance .......................... 1
LEAN .............................................................27
Leasing Solutions, LLC ...........................34
LTi Technology Solutions ......................19
Madison Capital .......................................16
NEFA .......................................................35,37
NewLane Finance ...................................... 5
North Mill Equipment Finance............38
Northteq ....................................................... 7
Orion First .................................................BC
Rinaldi Advisory Services ......................15
SCJ Commercial Financial Services ....13
STRIPES Leadership................................10
Tamarack Technology ............................30
TBF Financial .............................................36
The Alta Group .........................................20
Soli ..............................................................21
VFI Corporate Finance ............................. 9
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integrated in a way that only
a true partner can be and are
wholly invested in our success.”
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SVP, Credit and Risk Management
Midland Equipment Finance
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