| Daily news for the equipment finance sector |  |
| Industry News |  |  |
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- Business spending on equipment rises in Q3
Business spending on equipment rose 1.1% in the third quarter, according to a government report. It was the first sign that conditions for leasing were on the mend, analysts said. Edward Yardeni of Yardeni Research forecast that businesses will increase their spending on capital equipment at an annualized rate of about 10% this quarter. Yardeni predicted that such spending will rise even higher as the economy recovers. WorldLeasingNews.com
(11/2)
    
- Firm to get $100M credit facility from GE Capital, SocGen
GE Capital's media, communications and entertainment business and Societe Generale's corporate and investment banking agreed to extend a $100 million capital loan facility to Access Digital Cinema Phase 2. Access Digital, a unit of Cinedigm Digital Cinema, plans to use the loan facility to deploy as many as 2,133 digital systems next year. WorldLeasingNews.com
(11/2)
- IASB, FASB exclude certain leases from new accounting rule
Decisions by the Financial Accounting Standards Board and the International Accounting Standards Board exclude certain types of leases from a new accounting standard. The rulings are a victory for executives at companies that had pushed to exclude certain types of leases from the rule. The rule puts leases and other obligations on company balance sheets. CFO.com
(11/2)
- CIT must overcome hurdles to emerge as viable entity
After filing for bankruptcy, CIT Group faces several obstacles, including approval of its prepackaged bankruptcy plan by the court, before it can return as a viable business. The court must determine whether CIT's plan is "feasible" and that the lender will likely not have to liquidate or refile for bankruptcy before Judge Allan Gropper may approve the plan. CIT is expected to pass that hurdle, but analysts said there are other concerns. Financial Times (tiered subscription model)
(11/3)
, Reuters
(11/3)
| Market Trends | | |
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- Manufacturing and housing are up, but so are business bankruptcies
Manufacturing and housing, two sectors that helped drag the economy into recession, seem to be helping lead it out of crisis. A survey of purchasing managers shows that manufacturers expanded in October at their fastest rate in more than three years, and pending home sales were up 6.1% in September, according to a separate survey by the National Association of Realtors. The economic news was not all upbeat, however: Business bankruptcy filings were up 7% last month. The Washington Post
(11/3)
, The Wall Street Journal
(11/3)
- Small businesses seek funding at alternative sources
Small businesses are seeking out nonbank sources of lending. Some go to organizations such as the Industrial Council of Nearwest Chicago's Illinois Small Business Development Center, which has a revolving loan fund. "When credit was easily accessible and cheap, no one came to us for it. Now we're starting to see people need alternative financing again," Director Denise Ching says. Other small businesses look to private services such as factoring to get financial help. Chicago Tribune
(11/2)
- Commentary: Small-business hiring is key to preserving recovery
Mark Zandi, chief economist at Moody's Economy.com, writes that more needs to be done to help small businesses increase hiring in order to preserve the fragile recovery. "Businesses may not be shedding jobs as aggressively as they were earlier this year, but they still aren't hiring. Unless they start doing so soon, consumers won't have the wherewithal to keep spending, and the economy could slip back into recession," Zandi writes. The New York Times
(11/2)
| Government & Regulatory | | |
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- Economist must figure out how to soak up Fed's money
During the financial crisis, the Federal Reserve poured $1 trillion into the financial system to keep the economy from plunging. Brian Sack, an economist at the Federal Reserve Bank of New York, is in charge of figuring out how to soak up that money. Sack runs the Fed's market group, which manages the central bank's trading, buying and selling of Treasuries to influence interest rates. The group came up with complex programs during the past year, including purchases of mortgage-backed securities and commercial paper loans, and it must end the programs without disrupting the economy too much. The Wall Street Journal
(11/3)
- FDIC's Bair says government can't maintain status quo
Federal Deposit Insurance Corp. Chairwoman Sheila Bair said the government's intervention into financial markets, though necessary, has been challenging to her as a market advocate. She also said the government needs additional tools to keep financial institutions from becoming too big to fail. "The government has been going into places where we don't want to be," Bair said. "We simply cannot afford to maintain the status quo." Reuters
(11/2)
| Best Practices | | |
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- Outsourcing requires a careful eye
Outsourcing can help companies focus on their core competency and slash costs, but it is important to keep a close watch on how contractors operate, business coach David Glassman said. Many outsourcing companies focus on the needs of big firms, so small businesses have to be especially careful to ensure their operations are properly handled, entrepreneurship teacher Rupert Merson said. Financial Times (tiered subscription model)
(10/30)
| ELFA News | | |
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ELFA Web seminar: Learn best practices for creating sales and use tax reserves
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.
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Association publishes data on industry compensation
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.
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