Expand Your Business

Equipment Leasing and FinTech for Vehicle Lessors

Panelist Introductions

• Ed Kaye, Access Commercial Capital a division of United Leasing

• Allan Levine, Madi$on Capital

• Stu Lustman, P2PLendingexpert.com

Presentation Outline

• Why this topic is relevant

• Business Expansion

• Protect Your Best Business

• Equipment Leasing Overview

• Fintech Overview

Business Expansion

• Create additional lines of business and revenue streams

• Easily integrated into your existing platform

• Non-distruptive – Solicit your existing customer base without disrupting the

normal sales process

• Advertise it on your email logo, website, or other correspondence

• Recourse and nonrecourse programs available

Equipment Leasing

• Examples:

• Finance shop equipment for transportation companies

• Gurneys for ambulance and ambulette companies

• Bus wash equipment for bus companies

• Credit driven process

Equipment Leasing

• Compliance issues

• File a UCC-1

• A UCC-1 financing statement (an abbreviation for Uniform Commercial Code-1) is a

legal form that a creditor files to give notice that it has or may have an interest in the

personal property of a debtor (a person who owes a debt to the creditor as typically

specified in the agreement creating the debt).

Equipment Leasing

What’s the process?

• For transactions under $250,000

• Credit application

• Bank statements (3 to 6 months)

• Equipment description

• For Transactions over $250,000

• All the above

• Two years tax returns or financial statements

• Interim financial statement

• Personal Financial statement

Working Capital Loans

• Working Capital

• $40B industry

• Your customers are already utilizing it!

• Rapid Advance, Channel Partners, OnDeck, Funding Circle, Kabbage, etc…

• Utilized for project financing, opportunity loans, unexpected expenses

Working Capital Loans

• Rates

• Not for the faint hearted!

• Full transparency and disclosure up front is critical

• Usually daily ACH

• 20% and up!

• Can also consider cash out refinancing of collateral if feasible

Working Capital Loans

• Non recourse fee driven product

• Submit a credit application and 3 – 6 mos bank statement

• Usually have real time credit updates from initial submission to funding to commission

payment

• The Lessor can be as intimately involved in the process or as uninvolved as you wish

What is Fintech?

Fintech is the marriage of FINance and TECHnology.

• Firms use tech where they can to make borrowing or other financial

services (payments, compliance) simpler and faster than conventional

lenders

• Many are better capitalized than captive lessors

• Provide both a value added resource to your business with additional loan

products AND are an indirect threat to your bread and butter leasing

business.

August 2007

Lending Club issues first

loan

March 2010

Lending Club loan

volume reaches $100

million

November 2012

Lending Club loan

volume reaches $ 1 billion

June 2015

Lending Club loan

volume reaches $10

billion

Year End 2016

Lending Club issues over

2 million loans for $24.6

billion in volume

Lending Club’s History: Biggest Fintech Player

Fintech: You Have Many Indirect Competitors Online

Banks

Banks are getting into

online lending in record

numbers

● Suntrust

● Goldman Sachs

● Wells Fargo

Fintech Firms

Financial Technology

firms are working to

disrupt ALL lending

including small business

● Lending Club

● Prosper

● Kabbage

Hybrids

Firms that use fintech and

provide some banking

services already

● Paypal-Working

Capital & Swift

acquisition

● Amazon-lending for

online merchants

Competitor:Wells Fargo Fastflex Sm Biz LoanLaunched in May 2017

Loans up to $100,000

Weekly payment structure

Direct comparisons in

pricing with Can Capital,

OnDeck and Kabbage

Link:

https://newsroom.wf.com/

press-release/consumer-

lending/wells-fargo-

launches-

fastflex%E2%84%A0-small-

business-loan

Fintech Can Add Value, Too

While some fintechs target your customers, others want to partner with you

• MCA firms and Working Capital lenders know YOU are a great source of

business for them and THEY are a good source of additional revenue for

you

• Their technology and speed is your advantage while you close your lease

with the customer.

• Make sure your Equipment lease UCC-1 is filed first and deal closed

Fintech companies that target relationships with

Lessors

• Channel Partners Capital (www.channelpartnerscapital.com)

• Rapid Advance (www.rapidadvance.com)

• Funding Circle (www.fundingcircle.com)

Questions?

Q & A