╨╧рб▒с>■  68■   5                                                                                                                                                                                                                                                                                                                                                                                                                                                ье┴7 Ё┐Е"bjbjUU "27|7|Е      lиииииии╝ffff r$╝▌╢вввввввв\^^^^^^$У │╪ВивввввВД ииввЧД Д Д в"ивив\Д в\Д ╩Д NииNвЦ └>╠щ┬└╝кf─$N\н0▌NЛш ЬЛNД ╝╝ииии┘Articles eLease The eLeasing List above was compiled by Joshua Boucher, LeasingNews intern, who is now working on a list of eLeasing software companies. Leasing News published the first report on УeLeasingФ in August, 2000. There have been many changes in the last nine months, with three no longer in business, others changing to more established methods of obtaining sales, and others in great financial trouble. It appears this niche of УDot ComФ business is going the way of many other УDot ComФ companies. * The internet appears to be a viable business for captive vendors, those that control the placement of leases, and other financial institutions, including many in the leasing industry, who control the placement of leases. Most leasing companies today have a web site, and either a simple or УportalФ application Уon line.Ф These УeLeasingФ companies aggregate, collect and connect funding sources with lessees. They are intermediaries. They may be considered "online brokers" or "online super brokers." They do not fund leases "direct." Most of them have an "auction" type format ,"matching" lessees with the lowest cost lessor. They also claim to offer a one-stop-shop for all credit and equipment types. Many of them do not "credit score" but introduce or match lessee and equipment to lessor. Most do not have "auto approval" or make so-called "instant decisions.Ф Although they may make claims, they do not live up to them. Most make mention of the leasing industry in various forms of Уnegative selling.Ф Very few have come from the leasing industry itself. What has changed is that the eLeasing Уdot comersФ are going the more traditional methods of other leasing companies, who hire salesmen, telemarketers, send out faxes, mail letters to businesses, including Уpre-approvedФ plastic leasing cards, seeking business from Уlease brokersФ , pay fees to sellers of equipment, and of course, make direct calls on end users. The World Wide Web is not bringing them enough business to survive as a sole Уdot comФ attraction of lease applications.. In its short Уhay day,Ф LeaseExchange was УburningФ $300,000 a month, according to the former president Aaron Ross, on sales managers, sales offices in both Northern and Southern California, and salesmen, who were primarily calling on sellers of equipment. There was also much promotion on the internet to attract end users to the web site, and a sales team to attract funders of equipment to approve the credit. Overhead has been dramatically scaled down and a small crew is able to complete the Уon lineФ auction process. In addition, one of the advisory board was an officer of a major seller of computer equipment, who was trying to have most of their sales go through LeaseExchange. He is no longer employed at this company. For the record, I serve as a member of the advisory board; however, there was only one initial meeting and it was my impression advisory board members were chosen to contribute УvendorsФ or УmoneyФ. None of my advise was ever taken, for whatever that was worth. The leading Dot Com magazine, УRed Herring,Ф singled out LeaseExchange as a leader in the new eLeasing industry, often quoting former president Aaron Ross. He appeared at a United Association of Equipment Leasing Conference in San Francisco. This company has learned much, built a following, and continues to survive. It has a lot of positive things going for it. What I have communicated is public information. eLease lost a round of management as reported on the Leasing News list. They then lost their main round of funding at Primestreet. Employees were let go. While their site offered many software programs, American Leasing attempted to obtain a demonstration, wanting to buy the program, but was told they were Уstill in beta,Ф meaning not available. The web site is still up, and there are advertisements in the Daily Monitor, yet we have conflicting reports from ex-employees and from our own direct reporting. The fact is, once the website is created, any e-lease company can be run from the bedroom of your home as the website may be hosted elsewhere. TotalFunding made a very big splash, first at the National Association of Equipment Leasing Conference last April in Nashville, at the United Association of Equipment Leasing Conference last May in San Francisco, with УlavishФ no host parties, the hiring of top leasing industry sales managers, such as Dennis Doyon and Steve Warren, among others. The idea was not only to impress funders, but to attract brokers, who would split points based on volume and points to vendors. Many brokers were signed up, obtaining TotalFunding business cards. As a member of the TotalFunding advisory board, I am not privy to any financial information, nor have I ever attended an advisory board meeting ( to my knowledge, there has never been one. ) There have been a number of changes at TotalFunding. The leader, Allan Collier, is a former lease broker, and experienced in the industry. He is very knowledgeable. My personal experience as a lease broker attracted six vendors to utilize the program, none of whom were every successful with the on line application process. One a major national seller of software in the small dollar range, $800 to $2,900, by the time it was about to start, TotalFunding eliminated the small lease plan as not being profitable for the time involved. No application was ever processed, and the system on the sellers website was never put into place, after several months of effort. The original sales personnel are no longer at TotalFunding, as they found out many of the transactions needed relationship selling, meaning the broker had to be involved in much of the process, therefore the low commission was not paying for the time needed. While many brokers were given SalesForce software in the beginning, this was abandoned as not being effective. Too many people were telemarketing to lessees and vendors. As a funny side note, American Leasing looked at a Silicon Valley list from Dun and Bradstreet, and in course of the proposed sale, were told УЕover thirty equipment leasing companies were using the list, so it must be good.Ф TotalFunding does direct selling, as Alan Collier did in his old days as a lease broker. They also supply Уbackroom documentationФ for brokers who send them business via their website, or direct by e-mail, fax, Federal Express. They have become more a УtraditionalФ leasing company with a website for receiving leasing applications. They are surviving, and all indications are the company is learning, growing, and adapting to the marketplace. The internet is great technology with the ability to process data at tremendous speeds, but in the end it is still a communication tool just like the cellular telephone or fax machine. It has tremendous capabilities and possibilities, but the selling of leases is not done by telephone or fax or by the computer connected on the internet . It is still a people business. This niche of the leasing industry that started out with the attitude they were going to change the way financing was done, that everyone was Уout of date,Ф and Уwe are the World,Ф is now struggling to survive, perhaps more so than the rest of the leasing industry. *80 percent of San Francisco-area dot-coms are expected to go out of business during the next 18 months. 75,500 dot-com employees laid off nationwide since December 1999 25,000 dot-come employees laid off in Silicon Valley and the San Francisco Bay Area since December, 1999 30,000 dot-come layoffs, expected in the San Francisco Bay Area this year. S.F. 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