Welcome to the inaugural issue of Commercial Finance Consultants’ Leasing Today News, tailored to bring you the lastest news and information. As many of you know, Commercial Finance Consultants is the one of the premier Executive Search Firms servicing the Leasing, Asset Based Lending and Factoring Industry across this great United States of ours. We truly appreciate the opportunity you have given us to help your companies grow and to that end we will be producing a monthly newsletter to share with you the latest news, information, and happenings in the leasing industry we discover in our meanderings. Information is power in any industry and we’ll bring you new ideas and innovative perspectives to consider as you manage and grow your business. In this issue, Blair Neville formerly of Maple Commercial and Compaq fame, shares some of his insights on what appears to be an ever more viable funding source for leasing companies – hedge funds.

by Blair Neville One of the constant struggles of any growing leasing company is the continued need to seek out and establish relationships with funding sources. The need to have an easily accessible source of debt funding that will grow and change as the business grows is an on going challenge. Leasing companies use the traditional bank marketplace as the source of capital for warehouse facilities, working capital lines, and as buyers of the debt portion of their loans. These relationships work well until a lessor has to manage multiple banks, contend with their concentration issues and work inside a limited credit box. Banks are by far the dominate source of funds used by lessors but over the last few years some new players are appearing a viable alternatives. During the last few years the hedge fund industry has a recognized the potential of the leasing industry and has started to venture into the environment as a source of capital. A Hedge Fund can have many structures but simply, it is a private investment firm that invests in a variety of securities. Hedge funds have a great deal of flexibility in their investment options and employ a variety of hedging strategies to manage their stock portfolio. Firms will use statistical arbitrage methodologies, short selling strategies (additional trades to balance risk), derivate models such as interest rate and foreign currency swaps, and leverage to achieve their yields. Industry statistics show that there are more then 5000 funds in the US and the number is growing. These businesses are aggressive and are constantly looking for alternative places to deploy their capital resources. The leasing industry is attracting a great deal of attention. In my experience the funds are attracted to the lease market for a number of reasons.   The transactions fit their yield requirements, especially for the leveraged funds and the hard assets and long term nature of the lease contracts provide a less volatile asset class. The diversity of the transactions, especially in the small ticket arena provides attractive credit diversity. For example given the same credit profile, investing $10 million in a lease portfolio that contains 200 or 300 individual contracts is much more attractive than investing with a single obligor. This diversity plays to their traditional strength of working with large stock portfolio. The advantages for a lessor working with a fund include flexibility and responsiveness. Hedge Funds have significantly less infrastructure than traditional banks, and are not as constrained with credit and concentrations limitations. In addition they can be more creative structuring transactions with a willingness to look at additional collateral such as equity, receivables or additional assets to structure a transaction. There are some things you need to consider when working with a fund. They typically want to do larger transactions, at least $1million for a single deal and establish relationships in excess of $10 million. They are concerned with understanding the liquidity of the assets and the transaction as their portfolios have mainly consisted of equities and are short term in nature. This is a new territory for most of the funds and they are moving slowly but steadily into the leasing industry. They have some limitations but they are an attractive new source of capital for leasing companies that are growing and work with customers that require flexible, structured solutions.

Please take a moment and peruse the opportunities that we are currently involved. If you are aware of any talented leasing professional who may be a fit for any of these great situations, help them get in contact with us. BUSINESS DEVELOPMENT OFFICER – Well Respected leasing company in the San Francisco area is expanding its presence in northern California. Small ticket book is the ticket in to the winning game. ACCOUNT EXECUTIVES – These folks are growing, again. There is an immediate need for several hardworking, small ticket leasing folks. You’ll work nationally from this company’s LA area office. Light leasing experience is OK. Energy and character is a must. Extra strong commission plan for performers. Work hard – play hard atmosphere. Ask about their beach party. BUSINESS DEVELOPMENT OFFICERS – These folks are growing. Talent is needed on both coasts and the mid-west. This is one of the bright stars in the medical leasing arena. New funding sources give you the tools to win. Doctors love these guys. Telemarketing efforts are covering up their team with leads. Don’t miss the opportunity to join a awesome company. REGIONAL VICE PRESIDENT – Respected and exciting Chicago based leasing company is expanding. There is an immediate need in their Rochester, NY office for a player/coach type who can build a team and lead them into new territory. Grab the brass ring on this one and move up. BUSINESS DEVELOPMENT OFFICER – These folks are ready to field a business development team and strike while the market is hot. This bank backed leasing company has an experienced support staff that will provide world class service to the dealers and vendors you bring on board. You will have competitive rates and attractive leasing alternatives to offer your customers, keeping them happy for years. We're looking for individuals with a following in the small ticket space - office automation - IT/telcom , furniture, medical, water purification, to name a few. Expected volume will be $1.5 to $2 million monthly in return for a healthy six figure W-2. The compensation plan awards new business development AND repeat business. Base plus commission and bonus. Carve out your own territory and write your own paycheck. DOCUMENTATION/FUNDING MANAGER – One of the fastest growing leasing companies, anywhere, has a need for an experienced, forward thinking documentation/funding manager.   You'll manage a team of 6 motivated individuals who need a top notch manager to guide them to the next level. The company specializes in the small ticket segment, and funds the leases it originates through some of the top funders in America. You'll live in sunny San Diego, work in a high energy atmosphere and enjoy a competitive compensation plan ( base plus bonus). Relocation assistance will be provided. In exchange, we are seeking 3-5 years of management experience and a thorough understanding of the UCC filing process and guidelines. BUSINESS DEVELOPMENT OFFICER – One of the most respected names in the small ticket leasing arena has an immediate need for a Business Development Officer in Texas. This position will cater to small ticket vendors in Texas exclusively. Relationships with vendors in virtually any vertical (except of copiers) will be considered. IT/telecom, medical, industrial, furniture are all areas of interest. In exchange for $6M plus in volume, you'll earn a realistic $175K or more (depending on yield). Compensation is in the form of a base salary plus bonus and expenses. You can be based anywhere in the state. This is a unique position for this company and very visible. Grab this longhorn by the horns and put your brand on the Texas small ticket market. This is a sampling of some of our more exciting opportunities which grows daily. Relationships and confidentiality are the tenants of our business. Call today! If you are in a hiring capacity and have a staffing need or questions on how you might handle a staffing situation, please don’t hesitate to contact us. Our goal is to find great company clients and then find the best people to help them accomplish those goals. If you have a great company and have need for the best, please don’t hesitate to call us. Let us do for you, what we have done for so many others. Visit us at www.searchcf.com and check out the reference letter section. Ed Hamel, Leasing Team Leader (972) 203-6064 ext. 202 email: ehamel@searchcf.com Eric Hochstatter, Account Manager (972) 203-6064 ext 205 email: erich@searchcf.com

By extending the hiring process and letting the fire and sizzle of the opportunity die, you do not lose every candidate, only the very best ones. When you find the right person, close them fast and get them on board.

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