ELFA Association News
New industry studies available FREE
ELFA SmartBrief | Nov 20, 2009
The newest studies released by the Equipment Leasing & Finance Foundation include studies on:
- Bundled Transactions: Is the Trend a Game-Changer for the Equipment Finance Industry?
- Captive Finance Firms in a Challenging Economy: Why Some Thrive While Others Falter
- How Good is Your Credit Scoring Model?
- Rebuilding Health Care Infrastructure: What's in It For Us? (Release date: December)
- 2009 State of the Equipment Finance Industry Report
How do you get them FREE? Donate to the Equipment Leasing & Finance Foundation. Plus, donations to the foundation:
- Are tax-deductible, both corporate and individual gifts.
- Provide recognition for your company.
- Save time and money. It would cost a single company more than $250,000 to produce the foundation's various reports.
Corporate contributors donating $2,500 or more receive the reports free before their official release. Donate to the foundation -- your colleagues and competitors already are!
"Evidence for the Leasing Value Proposition"
ELFA SmartBrief | Nov 20, 2009
The Journal of Equipment Lease Financing, the signature publication of the Equipment Leasing & Finance Foundation, published an article on the leasing-value proposition.
Academic research supports the notion that leasing preserves capital and lines of credit, provides tax advantages, and might offer advantages from transferring equipment residual risk to the lessor. Less clear, however, is whether there is support for off-balance-sheet financing as a value enhancement to lessees. "Evidence for the Leasing Value Proposition," by James Schallheim, may be downloaded from the fall 2009 issue.
Association publishes data on industry compensation
ELFA SmartBrief | Nov 19, 2009
ELFA recently released results of its 2009 Equipment Finance Compensation Survey. A collaborative initiative between ELFA and human resources consultant McLagan, this year's survey results provide market data for management and staff positions, with more than 90 positions, in key front-,
middle- and back-office functions. Salary, bonus and commission data are broken out by company type, portfolio size, annual volume and ticket
size. The survey represents the most up-to-date information on industry compensation trends. To receive a list of participants and positions covered, e-mail bchoi@elfaonline.org.
Purchase a downloadable copy of results of the ELFA/McLagan 2009 Equipment Finance Compensation Survey.
Web seminar: "Renewable Energy Financing Structures: Partnership or Lease?"
ELFA SmartBrief | Nov 19, 2009
Long-term financing deals for renewable-energy projects, especially wind and solar, are closing with increasing frequency now that financial markets have improved and the Treasury is issuing stimulus funds. Join ELFA and the Bureau of National Affairs for the Web seminar "Renewable Energy Financing Structures: Partnership or Lease?" Objectives of this 90-minute discussion include providing participants with a conceptual understanding and practical application of:
- Generic lease and partnership structures suitable for renewable-energy financing, particularly wind and solar photovoltaic.
- Tax benefits and cash grants available for such financing.
- Key legal, tax, accounting and economic issues affecting the choice of structure.
- Comparing economic yields and present values for each structure.
- Tax issues pertaining to economic substance, section 704(b) substantiality and true lease characterization.
- Comparing lease to partnership financial accounting, including likely changes in accounting treatments.
The Web seminar is scheduled from 12:30 to 2 p.m. Eastern on Dec. 10. (Note: When registering, select "Yes" for BNA subscriber to get the $249 rate.) Register now!
Plan ahead: ELFA's 2010 calendar of events is online
ELFA SmartBrief | Nov 18, 2009
ELFA meetings and conferences provide an exceptional opportunity for keeping up with the latest developments affecting your business. They also provide a forum for creating and reinforcing relationships with others in the industry. ELFA's 2010 calendar of events is online, and we encourage you to mark your calendar for programs you wish to attend. You may also download a PDF of the schedule. The calendar is continually updated with programs, including Web seminars. Watch for additional announcements of events, or check the calendar regularly for upcoming programming.
Guidance on lessees' comment letters available on ELFA's Web site
ELFA SmartBrief | Nov 18, 2009
The International Accounting Standards Board and the Financial Accounting Standards Board met Oct. 28 in Norwalk, Conn., and made these decisions related to the lease-accounting project:
- The boards reaffirmed the right-of-use approach for lessee accounting.
- They agreed that leases that are purchases or sales should be "scoped out" of the project.
- The boards are treating lessor accounting as if it is part of the project, even though lessor accounting was not formally added to the project, a departure from their previous leaning.
- The lessor-accounting model they favor is "performance obligation" instead of "derecognition."
Separately, ELFA made available talking points for members' lessees to communicate their views to the FASB and the IASB on the lease-accounting project. It is critical that the boards hear from lessees and customer groups so they receive a thorough understanding of the project's impact on businesses, both large and small, throughout the U.S. Access these talking points and other information and analyses about the project, including a lease calculator designed to estimate the financial impact of proposed changes.
Top-notch training, top-notch instructors -- earn CPE credits
ELFA SmartBrief | Nov 17, 2009
Principles of Leasing and Finance Workshops in your office!
Looking for training that takes your employees from the basics of leasing to truly covering the different aspects of leasing? The Principles of Leasing and Finance Workshops program is your answer! Our instructor will come to your offices and train your employees. In-house workshops contain two days of sessions that provide tremendous information in leasing and finance. Speak with the instructor to set up and customize the training toward your organizational needs.
Workshop outline:
- Example of a Typical Lease vs. a Standard Loan.
- Industry Terminology.
- Rules and Regulations.
- Types of Lease and Finance Transactions.
- Lease Accounting.
- Benefits of Leasing.
- Types of Lease Programs.
- Types of Equipment Lease and Finance Institutions.
- Legal Structure of the Customer.
A detailed agenda for in-house training is available. For pricing information, e-mail jfianko@elfaonline.org.
Register for ELFA's 2010 Equipment Management Conference & Exhibition
ELFA SmartBrief | Nov 17, 2009
Registration is open for ELFA's 2010 Equipment Management Conference & Exhibition, scheduled Feb. 21 to 23 at JW Marriott Starr Pass Resort & Spa in Tucson, Ariz. See complete details and register. The conference includes multiple sessions, live equipment inspections, off-site tours -- including a visit to the Caterpillar Proving Grounds -- exhibitions and unmatched networking opportunities to help you benchmark and learn how your peers in the industry are managing their way through this economic cycle. JW Marriott Starr Pass Resort & Spa has a special Web page for attendees to make hotel reservations. If you prefer, call (888) 527-8989 and mention "ELFA equipment meeting" to get the ELFA group rate. Hotel reservations made after Jan. 27 are based on availability and might be at a higher rate.
Maine law on lease tax put on hold
ELFA SmartBrief | Nov 16, 2009
The ability of citizens in Maine to bring laws up for a "people's veto" means newly passed tax reform altering sales tax application to lease agreements will not take effect until voters pass judgment in a referendum on the June ballot. Maine LD 1495/Public Law Chapter 382 was scheduled to go into effect Jan. 1 for most transactions and April 1 for leasing, but enough signatures were filed on petitions to stay the law. Supporters of the tax bill are questioning the validity of the petitions and examining other options to prevent the issue from appearing on the June ballot. Additional information is available from the Kennebec Journal and Bangor Daily News.
2009 Survey of Equipment Finance Activity
ELFA SmartBrief | Nov 16, 2009
ELFA's premier benchmarking survey has been released. This survey covers all aspects of the equipment-finance industry, and it is a must-have if your organization wants to benchmark itself against its peers. The survey presents the most comprehensive industry-performance metrics available.
Following global economic trends, 2008 was a difficult year in equipment finance. Total new-business volume dropped 2.2% overall for survey respondents. Pretax income and net income decreased both in dollar value and as a percentage of total revenue. Financial measures such as return on average assets and return on average equity dropped to their lowest levels in at least 10 years of the survey. Total headcount decreased. Delinquencies and full-year losses, or charge-offs, were on the rise.
There are glimmers of hope. While there was an overall drop in new-business volume, more than half of the respondents experienced volume growth in 2008. Pretax spreads increased after four years of compression. And while overall headcount decreased, employment did grow in credit approval and the collections and workouts area. ELFA members are focused on risk management, priming their organizations so they are ready to respond when businesses shed the paralysis caused by uncertainty and begin to invest once more.
ELFA member-respondents were sent complimentary copies of the survey report. In addition, confidential data sheets on individual companies, which show individual statistics ranked against a peer group, were sent to all respondents. Nonrespondents may purchase the report from ELFA.
For more information or to receive the table of contents for the report, contact Bill Choi at (202) 238-3413 or bchoi@elfaonline.org.
ELFA's RSS feeds
ELFA SmartBrief | Nov 13, 2009
RSS stands for Really Simple Syndication, and it is an easy way for you to keep abreast of up-to-the-minute content available on ELFAonline.org without cluttering your e-mail inbox. The content is delivered in a "feed" that you can monitor using an RSS reader, which you can get as a small software on your desktop or through an online service. The reader will collect all updates from RSS feeds to which you subscribe, and it will display them in a central location, along with any other content to which you subscribe. Through ELFA's RSS feeds, you can get updates on work the association is doing in your area of business or interest. ELFA offers RSS feeds that monitor industry news, news releases, legal issues, foundation news and ELFA SmartBrief.
Check out our subscription information to get our RSS feeds or to find out how to get an RSS reader.
ELFA announces new board members, officers
ELFA SmartBrief | Nov 12, 2009
ELFA elected new board of directors and officers. Kenneth R. Collins Jr. of Susquehanna Commercial Finance is the chairman, and David A. Merrill of Fifth Third Leasing is the chairman-elect. The new board members are Anthony Cracchiolo of U.S. Bank Equipment Finance, Steve Grosso of CoActiv Capital Partners, Lauren Hill of Mesirow Financial Consulting, Harry Kaplun of Frost Bank, Anthony Pacchiano of ADP Commercial Leasing and Richard Ross of Summit Funding Group.
Next industry studies available FREE
ELFA SmartBrief | Nov 12, 2009
The newest, soon-to-be-released Equipment Leasing & Finance Foundation research includes these studies:
- Bundled Transactions: Is the trend a Game-Changer for the Equipment Finance Industry?
- Captive Finance Firms in a Challenging Economy: Why Some Thrive While Others Falter
- How Good is Your Credit Scoring Model?
- Rebuilding Health Care Infrastructure
- What's in It For Us?
- State of the Equipment Finance Industry Report
How do you get them FREE? Donate to the Equipment Leasing & Finance Foundation. Plus, donations to the foundation:
- Are tax-deductible, both corporate and individual gifts.
- Provide recognition for your company.
- Save time and money. It would cost a single company more than $250,000 to produce the foundation's various reports. Corporate contributors donating $2,500 or more receive the reports free before their official release.
Donate to the foundation -- your colleagues and competitors already are!
Training is fundamental to running a business, no matter what economic conditions you might be facing
ELFA SmartBrief | Nov 11, 2009
ELFA Academy expanded its catalog of online courses through a partnership with Business Training Library. BTL hosts an extensive catalog of business-related online training that is used by thousands of companies nationwide. We extensively reviewed the courses available through BTL and selected several that fall into these categories:
- Business law.
- Communications.
- Customer service.
- Legal compliance.
- Marketing.
- Negotiation.
- Sales.
In addition to the courses we are recommending, you are free to browse the thousands of courses BTL offers. As an ELFA member, you pay only $89 per course. To review the recommended courses within a category, click on the category name.
For questions or more information, contact Alexa Domeck, e-learning manager, at adomeck@elfaonline.org or (202) 238-3416.
Journal includes primer on international maritime sector
ELFA SmartBrief | Nov 11, 2009
The Journal of Equipment Lease Financing, the signature publication of the Equipment Leasing & Finance Foundation, published an article on leasing transactions in the international maritime sector. The Merchant Marine Act of 1920, otherwise known as the Jones Act, has long governed leasing in the nation's maritime industry. However, the article, "A Primer on Leasing Transactions in the International Maritime Sector," by Basil M. Karatzas, describes international markets -- "blue-water" shipping -- which have distinct differences regarding asset differentiation and residual value, sources of capital, legal environment, and taxation. Download the Journal of Equipment Lease Financing.
ELFA issues Q3 MLFI-25, Beige Book quarterly review
ELFA SmartBrief | Nov 09, 2009
The Monthly Leasing and Finance Index and Beige Book quarterly review are available on ELFA's Web site for download. The Beige Book, styled after the Federal Reserve's summary of anecdotal analysis of regional economic activity, is an analysis of performance data and financial activity in each of the sectors represented by the ELFA Small Ticket, Financial Institutions, Captive and Vendor Finance, and Middle Market Independent business councils. The Beige Book augments a summary of quarterly data compiled from the 25 participating companies in the ELFA Monthly Leasing and Finance Index. Each member of an ELFA business council steering committee was asked to answer questions that help identify trends in third-quarter business performance in areas including origination, capital availability, spreads, delinquency, losses, credit approval, and best- and worst-performing industry sectors. Together, the data set is a simple, yet helpful, tool that enables members to identify critical business trends and assess their performance metrics against their peers'.
ELFA members may download the quarterly index and Beige Book review at ELFA's Web site.
Non-ELFA members may download the analyst call for a review of the index and Beige Book review.
Web seminar: Incentive Compensation Design -- Sales/Origination
ELFA SmartBrief | Nov 09, 2009
1 to 2:30 p.m. Eastern on Nov. 12
Register now!
This Web seminar will highlight market practices for incentive plan structures for origination staff in the equipment-leasing and -finance industry. The focus will be on compensation philosophy, plan objectives, eligibility, types of plans, award opportunities, quantitative and qualitative performance measures, and administrative provisions of plans in the market. It will also include open dialogue about changes being implemented as firms redesign their incentive compensation plans to adjust for risk, servicing costs, and divisional and corporate performance. The Web seminar will allow for networking and discussion of challenges with colleagues at other firms.
Who should attend: All individuals involved in the design and management of incentive compensation for the equipment-leasing and -finance origination function, including management, directors of finance and human resources professionals.
For questions or more information, contact Alexa Carnibella, e-learning manager, at acarnibella@elfaonline.org.
ELFA commends expansion of NOL tax provision
ELFA SmartBrief | Nov 06, 2009
ELFA commends Congress and the Obama administration for reaching an agreement to expand and extend the carry-back provision for businesses' tax net operating losses. This provision allows companies, regardless of size, to carry back losses for as long as five years if the losses were incurred in 2008 or 2009. Generally, NOL is carried back two years against previously paid taxes.
This economic-stimulus measure will help leasing companies that find themselves with significant losses from 2008 or 2009 because it allows them to carry back these losses to offset taxes paid in prior years. By offsetting previously paid taxes, companies will receive a tax refund from the Internal Revenue Service, thus creating an immediate cash infusion. Additionally, the measure will help customers of equipment-finance companies struggling to obtain funding by providing cash flow from tax refunds generated by this provision.
For more information, contact David Fenig, ELFA's vice president for federal government relations, at dfenig@elfaonline.org.
Web seminar: "Credit & Collections Benchmarking -- Industry Statistics ... How Do You Compare?"
ELFA SmartBrief | Nov 05, 2009
1 to 2:30 p.m. Eastern on Nov. 10
Register now!
In our volatile economic environment, understanding credit quality and trends from an industry and peer perspective is critical to improving your decision-making and managing overall credit policy. It is equally important to compare the effectiveness of your collections department with your peers. This Web seminar will provide data critical to analyzing the credit quality of your portfolio. Additionally, results of the Collections Effectiveness Survey will provide industry benchmarks and best practices of collections to help you manage your collections department and improve your overall performance in these challenging times.
Who should attend: Senior vice presidents and vice presidents of credit and collections, credit and collection managers, credit analysts, collectors, documentation specialists, and service providers to the industry.
ELFA requests guidance on sales tax increase in North Carolina
ELFA SmartBrief | Nov 05, 2009
ELFA is seeking guidance from the North Carolina Department of Revenue on proper application to existing lease contracts of a recent 1% sales and use tax increase. Traditionally, lease contracts in North Carolina that are in effect before an increase are grandfathered in at their original tax rate, but a recent notice from the state contradicts this practice. A PDF file of ELFA's request is available on the association's "State Issues" Web page.
How good is your credit-scoring model?
ELFA SmartBrief | Nov 04, 2009
The Equipment Leasing & Finance Foundation released a study on evaluating credit-scoring models during this time of economic flux. The study, "Credit Scoring Models: How to Effectively Rate Your Credit Risk," identifies specific risks associated with applying credit-scoring models to credit decision making. The study includes an overview of practices in the equipment-leasing industry as well as practices that vary significantly from the norm. You will gain insight into how recent failures of lending institutions outside the equipment-leasing industry underscore the risk of over-reliance on automated scoring models in place of human judgment in the leasing industry. Researched by PredictiveMetrics, the study is available online. Foundation donors receive the study for free, while it costs $300 for nondonors.
Are risk managers our new finance gurus?
ELFA SmartBrief | Nov 04, 2009
ELT Magazine is now available online. Read the cover story of the September-October issue, check out the regular columns, link to advertisers' Web sites and view the convention Onsite Guide insert, all on the ELFA Web site. It is in a reader-friendly format, full color, and there is an archive of past issues that have been posted online. Check it out!
ELFA Web seminar: Learn best practices for creating sales and use tax reserves
ELFA SmartBrief | Nov 03, 2009
Accounting for Sales & Use Tax Reserves
1 to 2:30 p.m. Eastern on Nov. 5
Register now!
Equipment-finance companies are under intense scrutiny regarding the adequacy of reserves set aside for positions they take on tax returns. What are the best practices for creating prudent reserves against uncertain sales or use tax positions?
This Web seminar will focus on applicable methodology for the purpose of creating and maintaining sales and use tax reserves. Standards that are applied in recognizing and calculating losses also will be addressed. Topics include booking a liability or disclosure under FAS 5, common FAS 5 issues, practical applications and FAS 5 Exposure Draft update.
Who should attend: Attendees should hold a position in tax, planning, research, business-unit support, accounting or any other job responsible for corporate-tax functions.
Last chance to attend ELFA Principles of Leasing and Finance Workshop
ELFA SmartBrief | Nov 02, 2009
You have one last opportunity this year to take the Principles of Leasing and Finance Workshop, from Nov. 16 to 18 at the Grand Hyatt San Antonio hotel in San Antonio. This course provides a comprehensive overview of the industry and is a must-attend workshop for anyone freshly hired or wanting a refresher on the basics. Register and review the complete agenda.
In addition, no public workshops are scheduled for 2010, unless market conditions improve and demand increases. If you want us to schedule a public workshop next year, we need to hear from you! E-mail Janet Fianko at jfianko@elfaonline.org, and we will keep track of everyone interested in the workshop. If we hear from enough members, we will get one scheduled.
Keep in mind that we will still be offering the workshop as a custom in-house program for member companies that have several people to train. For details on the custom workshop, e-mail Janet Fianko.
ELFA Web Seminar -- Best Practices for Creating Sales and Use Tax Reserves
ELFA SmartBrief | Oct 28, 2009
Accounting for Sales & Use Tax Reserves
Thursday, Nov. 5, 1 to 2:30 p.m. EST
Register Now.
Equipment finance companies are under intense scrutiny over the adequacy of reserves set aside for the positions they take on tax returns. What are the current best practices for creating prudent reserves against uncertain sales or use tax positions?
This Web seminar will focus on the applicable methodology for the purpose of the creation and maintenance of a sales and use tax reserve. The standards that are applied in recognizing and calculating losses will also be addressed. Topics will include: booking a liability or disclosure under FAS 5; common FAS 5 issues; practical applications; and FAS 5 Exposure Draft update.
Who should attend: Attendees should hold a position in tax, planning, research, business-unit support, accounting or any other position responsible for corporate tax functions.
Ken Collins takes over as ELFA chairman
ELFA SmartBrief | Oct 27, 2009
The 48th annual ELFA Convention wrapped up last Tuesday as leadership of the association passed from outgoing chairman Jim Ambrose of GE Healthcare Financial Services to Ken Collins of Susquehanna Commercial Finance Inc. Tuesday's program also included a keynote talk from economist Mark Zandi. Attendees said a rousing farewell to San Diego at Tuesday night's closing party poolside at the Manchester Grand Hyatt.
Check out the latest photos from the convention.
Look for the full convention report in the November/December issue of ELT.
Don't miss the Basics of Lease Accounting Web seminar WEDNESDAY!
ELFA SmartBrief | Oct 27, 2009
Wednesday, Oct. 28, 1 to 2:30 p.m. EDT
Register Now.
This Web seminar provides a basic overview and the introductory concepts of accounting for leases as currently defined within SFAS 13. It will explain basic terms and definitions within the lease accounting framework and the different types of leases.
The session will cover lease classification for lessees and lessors, lessor accounting for operating leases, direct-finance leases and sales-type leases with examples. The Web seminar will also provide an overview of lessee accounting, the lease vs. buy decision and the accounting reasons for leasing.
PRICING SPECIAL -- Register for 1 Web seminar, get a 2nd Web seminar 25% off. View a complete list of Web seminars.
In keynote address, Zandi says recession likely ended in August
ELFA SmartBrief | Oct 26, 2009
The Equipment Leasing and Finance Association's 48th Annual Convention presented the well-informed insights of Mark Zandi, Ph.D., chief economist and co-founder of Moody's Economy.com, in a keynote address. Dr. Zandi briefed attendees on the current economic situation and offered his forecast, conveying most significantly that the recession was likely over in August this year. Dr. Zandi cautioned, however, that the economic recovery will be a "slow slog" as real GDP is projected to grow by no more than 2% during all of 2010.
Read the full text of the news release.
For more details from Mark Zandi, go here.
Web Seminars -- Get the Basics in Tax
ELFA SmartBrief | Oct 26, 2009
Basics of Audits: Sales Tax
Oct. 27 at 1 p.m. EDT
Register Now
Basics of Audits: Income Tax
Nov. 3 at 1 p.m. EST
Register Now
Please note: These Web seminars are a repeat of sessions presented at the ELFA Tax Professionals Roundtable.
LIMITED-TIME PRICING SPECIAL!!!! Register for one Web seminar, get a second Web seminar 1/2 off. To take advantage of this offer, contact Alexa Domeck, e-Learning Manager, adomeck@elfaonline.org or 202-238-3416.
Sign up for ELFA SmartBrief
Companies in the news
- Airbus
- Bank of England.I
- Becton Dickinson and Company
- Caterpillar Inc.
- Eurocopter
- Fluor
- General Electric Company
- Grant Thornton International
- Hardin Construction Co. LLC
- Hologic Inc
- Intuitive Surgical Inc
- Jackson Hewitt Tax Service Inc
- KPMG
- Medrad
- PwC