Competition Among Friends Competing with Captive Finance Companies, Banks and Our Peers

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Competition Among FriendsCompeting with Captive
Finance Companies, Banks and Our Peers
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Presenters

• Joe Leonard Oakmont Capital Services, LLC
• Al Bommentre Wells Fargo Equipment Finance, Inc.
• Thom Drescher Security Equipment Company

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Typical Competition Faced By Todays Originator

• Banks
• Local (looking for the relationship)
• Regional (market penetration)
• National (pricing)
• SBA Programs
• 7(a)
• SLA (Small Loan Advantage)

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Typical Competition Faced By Todays Originator

• 2. Captive Finance Companies
• Wholly Owned
• Caterpillar, Cisco, etc
• Managed Program
• WFEFI, GE Capital, Trinity

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Typical Competition Faced By Todays Originator

• 3. Independent Finance Companies
• Specialty Companies
• Sheffield
• Snap On
• Modified Broker Program
• Ditch Witch
• Morbark

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Typical Competition Faced By Todays Originator

• 4. Brokers/Originators
• Legacy relationships
• Trigger Leads
• Industry Specialty
• 5. A/R Financing
• 6. Private Lenders

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Successful Methods to Win The Business

• Start with the VENDOR
• Identify their needs
• (credit policies, RTO, collateral issues)
• Analyze their current program(s)
• Cost (buy downs, co-op advertising)
• Approval/Closing ratios
• Recourse
• Determine ways to increase efficiency and
  perhaps even profitability

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Successful Methods to Win The Business

• 2. Vendor/Dealer Expectations
• Pricing (0 APR)
• Timing
• Participation
• Multiple Product lines
• Points

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Successful Methods to Win The Business

• 3. Join ThemDont try to Beat Them!
• Partner with the Captive/Vendor
• Added Value for the Captive
• Tougher Credits
• Assist with collections/dispositions
• Potential for additional business
• Open up to the possibility of an expanded
  relationship

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Successful Methods to Win The Business

• 4. Points/Referral Fees
• Necessary Evil or Welcomed Policy
• Profit squeeze
• Double Standards
• Exposure Compliance Issues
• Dodd-Frank
• Paying for tougher transactions

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Successful Methods to Win The Business

• 5. Leveraging Vendor/Dealer Programs
• Using the better deals to obtain a lower COF
  for all of your originations.
• Leveraging the Vendor/Dealer Relationship
• Leveraging the Funding Source Relationship

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Competition Among Friends

• Questions and Examples of the Audiences
  Successes.