Cef september 2013 32 w

September 2013 • volume 1 • issue 4 | www.canadianequipmentfinance.com

Insights on the credit union market

Why records count in equipment appraisals

The Road to Success

Inside: CFLA 40th Anniversary Special Issue The voice of an industry

PM40050803

North America’s Independent Equipment Finance Company

We deliver financing where you sell equipment Element Financial Corporation’s equipment finance specialists have been responsible for creating and operating some of the world’s most successful vendor finance partnerships. We understand how to customize vendor financing solutions that work for equipment manufacturers, dealers and distributors across North America. With $2.1 billion in capital behind us, we're ready to put that independent expertise to work for you.

Element Financial Corporation Toronto, Ontario 1-877-534-0019 www.elementfinancial.ca Element Financial Corporation (USA) Horsham, Pennsylvania 267-960-4000 www.elementcorp.com

contents

CREDIT UNION REPORT

July/August 2013 Volume 1 Number 3 Publisher and Editor-in-Chief Steve Lloyd steve@canadianequipmentfinance.com Creative Direction / Production Demigroup info@demigroup.com Photographer Gary Tannyan Advertising Sales Mark Henry mark@canadianequipmentfinance.com Brent White brent@canadianequipmentfinance.com For subscription, circulation and change of address information, contact subscriptions@canadianequipmentfinance.com

Publications Mail Agreement No. 40050803 Return undeliverable Canadian addresses to: Circulation Department

With the terms “banking” and “scandal” often going handin-hand, the public is looking to financial institutions to be more socially conscious »5

Survey says...

Credit unions outperformed big banks last year according to CFIB »7

Canadians’ love affair with credit unions »5 We’ve once again ranked credit unions first in over customer service excellence among all financial institutions

ELFA REPORT Confidence levels are high when it comes to the equipment lease finance industry south of the border »8

NEWS Manufacturing business conditions showed modest improvement last month »10

302-137 Main Street North Markham ON L3P 1Y2 t: 905.201.6600 • f: 905.201.6601 info@canadianequipmentfinance.com www.canadianequipmentfinance.com Subscriptions available for $40.00 year or $60.00 two years. 2012 Lloydmedia Inc. All rights reserved. The contents of this publication may not be reproduced by any means, in whole or in part, without the prior written consent of the publisher. Printed in Canada Reprint permission requests to use materials published in Canadian Equipment Finance should be directed to the publisher.

Also Publishers of

Payments Business www.paymentsbusiness.ca the Magazine of risk capital and credit.

Succession Planning

Payments Achieving efficient payments processing

March / april 2012 • www.canadiantreasurer.coM

12

Call to action for Canadian private business owners

The Road to Success

20

Canadian Treasurer www.canadiantreasurer.com

CFLA 40th ANNIVERSARY SPECIAL ISSUE »13 • The voice of an industry- Members weigh in on the role of the association and how the CFLA has transformed the asset-based financing, vehicle and equipment leasing industry in Canada • CFLA Snapshots

Navigating a Basel III world

Contact Management www.contactmanagement.ca Collaboration wins in supply chain finance

Financing harder for small Canadian public companies

Direct Marketing www.dmn.ca PM40050803

canadianequipmentfinance.com | CANADIAN EQUIPMENT FINANCE | september 2013

3

Credit union report

Socially conscious financial institutions outperform big banks along nearly every measure that matters

By Tamara Vrooman, President & CEO of Vancity Credit Union

he words “banking” and “scandal” have become synonymous in recent years — a pairing of terms that provokes skepticism about the possibility of any real change in the financial services system.

And yet ensuring that our banking system is working well, and for the right reasons, is critical. Where we allocate capital today, who we decide to lend to and who we don’t, these thing matter because they have a significant impact on our society’s future health.

The public is calling for changes in the financial system in response to the excesses and failures of recent years, as well as a wave of increasingly urgent social and environmental challenges. People are hungry to hear about ideas that move us beyond the banking meltdown and economic crisis to a banking system that values positive impact,

T

Look at all the issues when selecting a financing option

integrity, accountability and transparency.

The opportunity for change is to create a more responsive way to bank, one that puts the needs of people and their communities first, and then places the tools of banking in service of their economic, social and environmental development.

There are bankers (yes, bankers) who are at the forefront of this positive change, leading a worldwide movement to find global solutions to social and environmental problems and promoting a viable alternative to the current financial system that is fair, accountable and transparent.

And they are proving that not only is sustainable banking the right thing for people and their communities, it’s a way to ensure strong and profitable banks. The two are not mutually exclusive.

How do we know?

A study by the Global Alliance for Banking on Values, an independent network of the world’s leading sustainable banks, proves the point. The Global Alliance compared the financial performance of 28 “Global Systemically Important Financial Institutions” (GSIFIs) — the so-called

‘too-big-to-fail banks’ — and 22 sustainable banks for a 10year period from 2002-2011.

Across almost all the measures that matter in banking, sustainable banks outperformed their peers, with a greater proportion of exposure to customers in both deposits and loans,

relatively high and better quality capital, better returns on assets and equal returns on equity with lower volatility of returns, and significantly higher levels of growth.

Importantly, the results showed that the sustainable banks allocated almost twice as much of their balance sheet

We’re here to help Agriculture Interest-Bearing Operating Account Packages combine the convenience of an operating account with the ability to earn interest.

You can write cheques, and there is no charge for electronic transfers, deposits, or assisted bill payments.

There is also no minimum balance required.

Imagine the possibilities 866.446.7001

www.innovationcu.ca

canadianequipmentfinance.com | CANADIAN EQUIPMENT FINANCE | september 2013

5

Credit union report

Study shows that sustainable banks are resilient, support the economy, and provided stable returns to lending to the real economy than the GSIFIs, which meant more capital in the hands of the entrepreneurs and businesses interested in producing solutions to the complex global problems that matter to our social, environmental and economic health.

The study concluded overall that sustainable banks were resilient, supported the real economy, and provided stable returns. The GSIFIs lent less, attracted less deposits, and

had a weaker capital base than their sustainable banking peers.

Sustainable bankers believe that we must improve the quality of life for everyone on the planet, recognizing that we are economically interdependent and responsible to future generations. We require a direct relationship with our clients, customers or members to ensure a sound understanding of the economic activities in our communities and a realistic assessment of the risks

Orchid Leasing Corporation

Funding Transport Businesses

YOUR SOURCE OF CAPITAL FOR TRUCK AND TRAILER LEASES ACROSS ONTARIO, MANITOBA, SASKATCHEWAN AND ALBERTA

E NABLING L OGISTIC B USINESSES T O B LOOM

info@orchidleasing.com - www.orchidleasing.com - 1-855-712-3828 6

CANADIAN EQUIPMENT FINANCE | September 2013 | canadianequipmentfinance.com

involved.

We would like to see politicians and regulators use the sustainable banking model as a reference point for making the banking system more resilient and fair, transparent and accountable.

At Vancity, our vision says you can only truly prosper as an individual if you are connected to a vibrant, healthy community that is sustainable for the long term.

Our financial cooperative operates on a model of banking designed to connect directly with our members so we can innovate in response to their needs.

We need more people using the banking system, not fewer. Apart from regaining the trust of the public in the values and ethics of banking,

we also need to reach out to those who are marginalized or excluded from the system altogether, taking down the barriers whether they are caused by a lack of accessibility or a low level of literacy.

So, a banking system that is focused on the needs of people, now and in the future, is inclusive, puts capital in the hands of those who are creating solutions to complex social, environmental and economic problems, and is a robust business model for growth to boot.

Why wouldn’t everyone want to bank this way?

Tamara Vrooman is the President & CEO of Vancity, Canada’s largest community credit union, based in Vancouver, and a member of the Steering Committee of the Global Alliance for Banking on Values.

Credit union report

CFIB survey says credit unions outperformed big banks Just last year, Credit Union Central of Canada, the national trade association representing the Canadian credit union system, said the finance and banking needs research report issued by the Canadian Federation of Independent Business (CFIB) - Battle of the Banks, shows credit unions outperformed all banks in serving small- and medium-sized enterprises (SMEs), with a top-ranking overall score of 7.4 out of 10. SMEs also rated credit unions higher than banks in the individual categories of financing, fees and account manager.

Other key findings for credit unions include: Micro Businesses (1 to 5 employees): Very small businesses rated credit unions higher than banks overall, with a total score of 7.2 out of 10. Micro businesses also gave credit unions top marks in each area of interest, including financing, fees, account manager and service.

Credit Unions Rank First in Customer Service Excellence for Nine Years Running TORONTO--For the ninth consecutive year, Canadians ranked credit unions first in overall Customer Service Excellence among all financial institutions in the 2013 Ipsos® Best Banking Awards. Credit unions also took sole honours in two other categories: Branch Service Excellence and Values My Business.

“There truly is a ‘credit union difference’ and our members experience it every day,” said David Phillips, President & CEO, Credit Union Central of Canada. “Canadian credit unions and caisses populaires never lose sight of what is most important: our dedication to meeting the individual needs of our over 5.3 million members. We know that Canadians value the friendly, top quality service they receive from credit unions and this survey confirms what we hear from them,” added Phillips.

Survey results show that credit unions took sole honours in Branch Service Excellence for the 9th year in a row and Values My Business for the 6th year in a row. They also tied for first place in the following categories among all financial institutions: • Financial Planning & Advice; • Mobile Banking Excellence; • Automated Telephone Banking Excellence; and • Live Agent Telephone Banking Excellence Credit unions have been recognized for Financial Planning & Advice since 2010.

“With well over a hundred years of service, Canadian credit unions remain dedicated to a co-operative movement that brings innovative ideas, products and

services to their communities, as well as an exceptionally strong commitment to social responsibility and sustainability,” added Phillips.

“We are honoured that the Canadian financial services sector continues to use these customer service metrics as one of the key measures of their success,” says Ray Kong, Executive Vice President and Global Financial Services Practice Leader at Ipsos Reid. “Ongoing meaningful commitment to customer service, along with continued fiscal responsibility, are key reasons why Canada’s financial services sector has been a model of success for the whole world.”

Launched in 1987, the Ipsos (formerly Synovate) Customer Service Index (CSI) quarterly survey generates the winners of the annual Best Banking Awards. The Ipsos 2013 Best Banking Awards are based on quarterly Customer Service Index (CSI) survey results. Sample size for the total 2013 CSI program year ended August 2013 was 45,875 completed surveys yielding 69,268 financial institution ratings.

For the ninth consecutive year, Canadians ranked credit unions first in overall Customer Service Excellence among all financial institutions, surpassing all Canadian banks in the Ipsos 2013 Best Banking Awards. Credit unions also took sole honours in the Values My Business and Branch Service Excellence categories.

Credit unions tied for first among all financial institutions for Financial Planning & Advice, Mobile Banking Excellence, Automated Telephone Banking Excellence and Live Agent Telephone Banking Excellence.

Credit Risk Hurting Cash Flow?

Make fast, accurate credit decisions with a powerful web-based credit solution. Use our bank reports to compliment historical in-file data with current banking information.

Visit www.dnb.ca to request trial reports.

canadianequipmentfinance.com | CANADIAN EQUIPMENT FINANCE | september 2013

7

ELFA Report

U.S. equipment lease finance industry confidence up fourth consecutive month Washington--The Equipment Leasing & Finance Foundation (the Foundation) releases the August 2013 Monthly Confidence Index for the Equipment Finance Industry (MCI-EFI) today.

Designed to collect leadership data, the index reports a qualitative assessment of both the prevailing business conditions and expectations for the future as reported by key executives from the $725 billion equipment finance sector.

Overall, confidence in the equipment finance market is 61.0, an increase from the July index of 59.4, and the fourth consecutive increase of the MCI-EFI. When asked about the outlook for the future, MCI survey respondent William Verhelle, Chief Executive Officer, First American Equipment Finance, said, “We see continued, gradual economic

8

improvement in equipment finance activity across all our markets. Large, creditworthy obligors continue to finance major equipment acquisitions to retain flexibility and preserve capital.

Our portfolio performance couldn’t be much better, with record low charge-offs and delinquencies. We remain cautiously optimistic about the remainder of 2013 and 2014.”

August 2013 Survey Results: The overall MCI-EFI is 61.0, an increase from the July index of 59.4.

When asked to assess their business conditions over the next four months, 32.4% of executives responding said they believe business conditions will improve over the next four months, up from 25% in July. 67.6% of respondents believe business conditions will remain the same

CANADIAN EQUIPMENT FINANCE | September 2013 | canadianequipmentfinance.com

over the next four months, down from 71.9% in July. No one believes business conditions will worsen, down from 3.1% the previous month.

23.5% of survey respondents believe demand for leases and loans to fund capital expenditures (capex) will increase over the next four months, up from 15.6% in July. 76.5% believe demand will “remain the same” during the same fourmonth time period, down from 81.3% the previous month. No one believes demand will decline, down from 3.1% in July.

20.6% of executives expect more access to capital to fund equipment acquisitions over the next four months, down from 21.9% in July. 79.4% of survey respondents indicate they expect the “same” access to capital to fund business, an increase from 78.1% the previous

ELFA Report month. No one expects “less” access to capital, unchanged from July.

When asked, 29.4% of the executives reported they expect to hire more employees over the next four months, an increase from 25% in July. 64.7% expect no change in headcount over the next four months, down from 68.8% last month. 5.9% expect fewer employees, down from 6.3% of respondents who expected fewer employees in July.

91.2% of the leadership evaluates the current U.S. economy as “fair,” up from 90.6% last month. 8.8% rate it as “poor,” down slightly from 9.4% in July.

26.5% of survey respondents believe that U.S. economic conditions will get “better” over the next six months, a decrease from 34.4% in July. 70.6% of survey respondents indicate they believe the U.S. economy will “stay the same” over the next six months, an increase from 62.5% in July. 2.9% believe economic conditions in the U.S. will worsen over the next six months, down slightly from 3.1% who believed so last month.

In August, 29.4% of respondents indicate they believe their company will increase spending on business development activities during the next six months, a decrease from 31.3% in July. 70.6% believe there will be “no change” in business development spending, an increase from 68.8% last month. No one believes there will be a decrease in spending, unchanged from July.

August 2013 MCI Survey Comments from Industry Executive Leadership Depending on the market segment

they represent, executives have differing points of view on the current and future outlook for the industry.

Independent, Small Ticket “The outlook is slowly improving, but there are concerns about effects of changing Fed policy and renewed talk/action/inaction in Washington regarding sequestration and the U.S. budget.” William Besgen, President and Chief Operating Officer, Hitachi Capital America Corp.

Bank, Small Ticket “From a credit quality and liquidity perspective, the equipment leasing industry is very well positioned for healthy growth. We are still in need of a stronger economic recovery to grow opportunities. Until then, competition is pushing greater risk taking.” Paul Menzel, President & CEO, Financial Pacific Leasing, LLC Bank, Middle Ticket “Escalating cost of equipment, rapidly changing technology, increasing interest rates, and previously delayed replacement or additions of new equipment position the industry for a strong finish to 2013, and suggest an even stronger volume of business in 2014. Leasing of capital expenditures is growing as the financial product of choice in an environment of continued uncertainty and mixed confidence in the current recovery cycle.” Russell Nelson, President, CoBank Farm Credit Leasing Bank, Middle Ticket “With a very sluggish GDP and an another almost certain federal budget battle coming this fall, I believe growth

will be more challenged in the second half of 2013.” Adam Warner, President, Key Equipment Finance Why an MCI-EFI? Confidence in the U.S. economy and the capital markets is a critical driver to the equipment finance industry.

Throughout history, when confidence increases, consumers and businesses are more apt to acquire more consumer goods, equipment and durables, and invest at prevailing prices. When confidence decreases, spending and risktaking tend to fall. Investors are said to be confident when the news about the future is good and stock prices are rising.

Who participates in the MCI-EFI? The respondents are comprised of a wide cross section of industry executives, including large-ticket, middle-market and small-ticket banks, independents and captive equipment finance companies.

The MCI-EFI uses the same pool of 50 organization leaders to respond monthly to ensure the survey’s integrity. Since the same organizations provide the data from month to month, the results constitute a consistent barometer of the industry’s confidence.

How is the MCI-EFI designed?

The survey consists of seven questions and an area for comments, asking the respondents’ opinions about such topics as current business conditions, expected product demand over the next four months, access to capital over the next four months, future employment conditions and evaluation of the current U.S. economy.

Information Technology Solutions

ADD Capital Corp.

MarkhaM address: 500 Cochrane Dr., Unit 2 Markham, ON L3R 8E2 Bill Patterson (bill.p@addcapital.ca) 905 940-2151, ext 235

Burlington address; 5045 South Service Road, Suite 102 Burlington, ON L7L 5Y7 Dave Ralph (dave.r@addcapital.ca) 905 631-8001, ext 400

Common Sense Leasing • New Brokers Welcome • Reasonable solution to A credit declines canadianequipmentfinance.com | CANADIAN EQUIPMENT FINANCE | september 2013

9

news

RBC PMI signals modest improvement in manufacturing business conditions in August TORONTO--Canada’s manufacturing expansion was sustained for a fifth consecutive month in August, but the rate of growth was modest and below average, according to the RBC Canadian Manufacturing Purchasing Managers’ Index™ (RBC PMI™). A monthly survey, conducted in association with Markit, a leading global financial information services company, and the Purchasing Management Association of Canada (PMAC), the RBC PMI offers a comprehensive and early indicator of trends in the Canadian manufacturing sector.

After accounting for usual seasonal variation, the RBC PMI - a composite indicator designed to provide a singlefigure snapshot of the health of the manufacturing sector - posted 52.1 in August, littlechanged from July’s reading of 52.0. Remaining above the neutral threshold of 50.0, the RBC PMI has indicated growth of the manufacturing sector for five consecutive months, although the latest expansion was modest and weaker than the series average.

The RBC PMI found that both output and new orders rose at modest rates during August. This generally reflected greater client demand in both the domestic and export markets. Firms hired additional staff in light of higher activity levels, with the rate of employment 10

CANADIAN EQUIPMENT FINANCE | September 2013 | canadianequipmentfinance.com

growth accelerating to a three-month high. On the price front, input cost inflation picked up further, while output charges fell for the second month running.

“The PMI continued to make positive gains for the fifth consecutive month and moved modestly higher in August, suggesting some of the recent shocks to the economy have been mitigated by strength elsewhere,” said Craig Wright, senior vice-president and chief economist, RBC. “We expect that improving U.S. demand will continue to provide a boost to the manufacturing sector for the balance of the year.”

The headline RBC PMI reflects changes in output, new orders, employment, inventories, prices and supplier delivery times.

Key findings from the August survey include: ◉◉ output and new order growth continues; ◉◉ strongest rise in employment since May; and ◉◉ input price inflation picks up to a five-month high Manufacturers received a larger volume of new orders in August, as has been the case in each month since April. New work intakes grew in both the domestic and export markets, with the United States particularly highlighted as a source for the latter. Overall, total new order growth was solid, albeit unchanged from a three-

news month low recorded in July.

Reflective of increased new work, firms raised production and depleted existing inventories of finished goods. Output rose modestly in August, despite the rate of growth being the weakest in the past four-months.

The quantity of inputs bought by Canadian manufacturers rose marginally in the latest survey period.

Stocks of purchases also fell, albeit slightly, having increased one month previously. The reduction in input inventories partly reflected a preference for leaner stocks, but was also to offset longer suppliers’ delivery times. Lead times for inputs, on average, increased for the second month running in August.

Employment in the Canadian manufacturing

sector rose further in August, which is the 19th consecutive month of growth.

Approximately 18 per cent of surveyed firms hired additional staff since July (while seven per cent reduced their staff numbers) and often cited increased business activity. Overall, the rate of job creation was solid and the second-fastest in a year.

Input costs faced by manufacturers continued to rise in August. Panellists commonly reported higher prices for commodities, including oil and metals.

Although the rate of inflation accelerated for the fourth month running to its fastest pace since March, it nonetheless remained weaker than the historic average.

In contrast, average selling prices at manufacturing firms

fell for the second month running. This was the first back-to-back reduction in output charges since data collection began in October 2010.

Regional highlights include: •Ontario saw only a marginal improvement in manufacturing business conditions in August - the weakest among the four regions ◉◉ New orders fell in Ontario, but increased elsewhere ◉◉ Employment growth was strongest in Alberta and British Columbia ◉◉ Output charges fell in three regions, led by Alberta and British Columbia “Higher client demand supported a further expansion of the Canadian manufacturing sector in August. New domestic work

continued to increase and was matched by a further rise in exports, partly reflecting favourable market conditions in the U.S.,” said Cheryl Paradowski, president and chief executive officer, PMAC. “The survey also showed improvement elsewhere, with the Employment Index, in particular, suggesting the second-strongest increase in a year.”

The RBC Canadian Manufacturing PMI™ Report is based on data compiled from monthly replies to questionnaires sent to purchasing executives in over 400 industrial companies. The panel is stratified geographically and by Standard Industrial Classification (SIC) group, based on industry contribution to Canadian GDP.

canadianequipmentfinance.com | CANADIAN EQUIPMENT FINANCE | september 2013

11

events

WHERE TO GO. WHAT TO SEE. Find out more about the conferences, exhibitions, seminars and meetings in your industry

September 9-11 Equipment Leasing and Finance Association Lease and Accountants Finance Conference Austin , TX www.elfaonline.org

September 9-10 Equipment Leasing and Finance Association Operations and Technology Conference Austin, TX www.elfaonline.org

September 12-14 National Equipment Finance Association Funding Symposium Nashville , TN www.nefassociation.org

September 15-17 IFO Canada 3rd Annual Canadian Financial Operations Symposium Toronto, ON www.financialops.org/canada2013

September 17-18 Strategy Institute Transportation Infrastructure Funding & Financing Conference Toronto, ON www.transportationfinancing.ca

September 24-26

12

September 18-20 Canadian Finance & Leasing Association Conference 2013 Halifax, NS www.cfla-acfl.ca

October 10-11 Associated Equipment Dealers CFO Conference: Financial Issues for Distribution Executives Oak Brook, IL www.aednet.org

October 6-9 RIMS Canada Horizons--Annual Conference Victoria, BC www.rimscanadaconference.ca

October 20-22 American Bankers Association ABA Annual Convention, Business Expo & Directors’ Forum 2013 New Orleans, LA www.aba.com

October 20-22 Equipment Leasing & Finance Asssociation 52nd Annual Convention Orlando, Fl www.elfaonline.org

October 20-23 Sourcemedia ATM, Debit & Prepaid Forum 2013 Las Vegas, NV www.sourcemedia.com

October 23-24 Airline Information Inc 6th Airline and Travel Payments Summit & Co-Brand Conference 2012 London, UK www.aiglobal.org

Celero Solutions Canadian Financial Technology Conference Regina, SK www.celero.ca

October TBA

September 25

November TBA

2nd Women in Payments Symposium & Payments Business Magazine Awards Night, Toronto, ON www.womeninpayments.ca

Smart Cards in Government Conference 2013 Smart Card Alliance Washington, DC

Everlink Client Conference CONNECTIONS 2013 Toronto, ON www.everlink.ca

CANADIAN EQUIPMENT FINANCE | September 2013 | canadianequipmentfinance.com

www.smartcardalliance.org

November (TBA) TMAC Toronto Chapter 7th Annual Networking Event Toronto, ON www.tmac-Toronto.ca

November 5-7 BAI BAI Retail Delivery Conference 2013 Denver, CO www.BAI.org

November 6-8 Association for Governmental Leasing & Finance 2013 Annual Conference Boca Raton , FL www.aglf.org

November 13-17 Commercial Finance Association 69th Annual Convention Los Angeles , CA www.cfa.com

November 19-21 Comexposium CARTES & Identification Exhibition 2013 Paris, FR www.cartes.com

November 12-14, 2014 Commercial Finance Association 70th Annual Convention Washington, DC www.cfa.com

news digest

40

CFLA Anniversary

TH

special issue 2013

Brought to you by:

canadianequipmentfinance.com | CANADIAN EQUIPMENT FINANCE | september 2013

13

2

Membership in CFLA is an investment in your business CFLA is the only advocate for the asset-based financing, vehicle and equipment leasing industry in Canada.

An effective association is its industry meeting ground … in good times and challenging ones. When the economy is growing, and the industry along with it, CFLA members enjoy networking with their peers, sharing successes and looking to the next opportunities. Everyone is focused on growing their businesses.

In tougher times, CFLA members need their association: connecting with their peers, understanding what is impacting their business and why, how others are responding to the challenges, having neutral ground to share information, and ultimately a common advocate to fight the industry’s cause.

These are all invaluable benefits that only an association can offer.

The Association has four general priorities: • Industry advocacy - to key publics: governments, the media, other associations in the financial services sector, and the general public; • Member information - timely information to members of legislative, legal, accounting and tax changes likely to impact their businesses; • Professional education - seminars and workshops on all aspects of asset-based financing and leasing and other industry specific topics; a new on-line Canadian Lease

Education Program and • Networking – providing a forum and creating opportunities for industry leaders to meet and talk business.

Industry advocacy is the top member priority for CFLA. Governments are continually developing different policies to “fix” the economy and regulators propose new regulations to “enhance” the functioning of the marketplace. Existing rules are continually being challenged, changed or discarded and financing companies burdened with new legal requirements. Our industry has to be part of the consultation process or risk being forgotten or ignored. As a former CFLA Chairman put it: “if you’re not at the table, you’re on the menu.”

An association is only as strong as its member support. CFLA’s success to date has been founded on an effective formula of member involvement and a focused delivery of value.

Through the Association, members are able to influence the shape of their industry’s future.

Membership in CFLA is an investment in your business and its future.

David Powell President & Chief Executive Officer Canadian Finance & Leasing Association/ Association canadienne de financement et de location

3

Celebrating 40 years of guiding an industry When CFLA began forty years ago, it started with a handful of members, today there are over 225.

We have come a long way with much to be proud of.

Today, our industry is estimated to be financing up to $100 Billion in assets for Canadian consumers and businesses. In 1997, that number was $50 billion.2 Our industry continues to make a significant contribution to the Canadian economy. A few years ago, a respected, independent group of economists found that “the rise in asset-based financing from 1992 to 2002 improved living standards in Canada by 2.3% (or about 8% of the 26.8% increase in Canada’s living standards over that period”.)2 Despite the economic storms of the past decades, the industry has thrived because of its strengths: good people and the fact that, fundamentally, it offers valuable and effective products to the marketplace.

We have seen dramatic changes … in the marketplace, in technology, the mechanics of funding and the market reach of the industry, but some things have not changed - the quality and passion of the people that make this industry grow, their drive to make this business successful.

Looking ahead, what can those who succeed us learn from the first 40 years. Well, the people who built this industry, the leaders both past and present, have had much in common.

The capacity to innovate, to apply new technology, the ability to price risk well, the facility to remain flexible, and the strength to operate competitively in an unregulated marketplace.

Our industry has been successful because it has offered new products and services that our more traditional competitors do not. We have carved out a niche that previously hardly existed.

In a word, our business is entrepreneurial.

It is creative, complex, risk-taking, multiple relationship-building.

These are some of the talents that built our industry. These same talents will propel this industry into its next 40 years.

While the modern asset-based financing and leasing industry in Canada pre-dates CFLA by over a decade, there is little doubt that the Association has served us well. While it may be rash to attempt to forecast the future, it is safe to predict that our industry will always be confronted with many challenges. The lessons learned from the past, however, demonstrate that those challenges are best faced with a strong CFLA and its members working in the interest of all.

Jeffery Hartley Chairman Canadian Finance & Leasing Association/ Association canadienne de financement et de location

1 Report of the Task Force on the Future of the Canadian Financial Services Sector, September 1998, at p. 43 2 Asset-based financing, investment and economic growth, The Centre for Spatial Economics, Milton, Ontario, at page 62, December 15, 2004 http://www.cfla-acfl.ca/files/public/CFLA-Final_Economic_Report-PDF-Dec04.pdf

4

CFLA Board of Directors * Executive Committee + Former Chairman Chairman:

Michael Collins DealerTrack Technologies Mississauga, ON

Jeffery Hartley* Foss National Leasing Thornhill, ON

Moe Danis Pacific & Western Bank of Canada London, ON

Immediate Past Chairman: Serge Masse*+

Roy Gaysek ARI Financial Services Inc. Mississauga, ON

Vice Chairmen:

Eugene Basolini* RCAP Leasing Burlington, ON Ron Rubinoff* Hav-A-Kar Leasing Ltd. Toronto, ON Secretary Treasurer: Tom Pundyk*

National Leasing Winnipeg, MB

Angela Armstrong Prime Capital Consulting and Forest Leasing (2008) Inc. Edmonton, AB Jennifer Babe Miller Thomson LLP Toronto, ON Larry Baldesarra Toyota Financial Services Canada Inc. Markham, ON Angelo Caglioti Cisco Systems Capital Canada Co. Toronto, ON

Jim Halliday PHH Arval Mississauga, ON Peter Horan* De Lage Landen Financial Services Canada Inc. Oakville, ON Stefan Karrenbauer Mercedes-Benz Financial Services Canada Corporation Mississauga, ON Joseph Laleggia+ Scotiabank Leasing Group Burnaby, BC Katherine Lee GE Capital Montréal, QC Blake Macaskill CIT Financial Ltd. Burlington, ON Daryl MacLellan Maxium Financial Services Inc. Richmond Hill, ON Richard McAuliffe Key Equipment Finance Canada Ltd. Burlington, ON

Association Staff

A full-time professional staff manages the Association: • David Powell, President & Chief Executive Officer • Lalita Sirnaik, Manager, Finance & Administration • Matthew Poirier, Director, Policy • Charlene Forde, Manage, Events & Member Services • Chishuvo Mandivenga, Administrative Secretary

Loraine McIntosh Deloitte & Touche Chartered Accountants LLP Toronto, ON Douglas McKenzie BAL Global Finance Canada Corporation Toronto, ON Larry Mlynowski Bennington Financial Services Oakville, ON Paul Monjanel Ford Credit Canada Ltd. Oakville, ON Dave Ralph ADD Capital Corp.

Burlington, ON

CFLA Code of Ethics The Canadian Finance & Leasing Association represents equipment and vehicle leasing and asset based finance companies in Canada. There are fundamental standards of practice, which should serve as guiding principles for all engaged in the business of leasing and asset-based financing.

•

At all times conduct our activities with integrity, dignity and professionalism and encourage such conduct by others in the leasing industry.

•

Maintain respect for keen competition and seek no unfair advantage by dishonest or unethical means.

•

At all times adhere to the specific terms of funding commitments, commission agreements and purchase orders.

•

Not knowingly make false or misleading statements or withhold information vital to an intelligent business decision concerning any aspect of a leasing transaction.

Tom Simmons+ Jim Pattison Lease Mississauga, ON

•

Disclose all relevant information as to the terms and conditions of the lease, which may effect the lessee’s decision.

Bruce Smith Element Financial Corporation Toronto, ON

•

Treat in a fiduciary capacity all funds received from the lessee, which may be returned to the lessee.

•

Hold in strict confidence all financial information supplied by the lessee on a confidential basis.

Hugh Swandel Alta Group Winnipeg, MB

•

Not make payments directly to an employee of a vendor or business source without that company’s knowledge

John Tobin Torys LLP Toronto, ON

6

The Voice of an Industry

Members weigh in on the role of the association and how the CFLA has transformed the asset-based financing, vehicle and equipment leasing industry in Canada.

By Amy BoSToCk As a young ‘solopreneur’ working out of her basement, Angela Armstrong began attending CFLA events in order to gain an understanding of the behind-the-scenes workings of the industry.

“I wanted to know what was driving the industry, what the challenges were and what opportunities were out there,” she says. “What I really wanted to get out of it was the ability to connect at a higher level within the industry for knowledge.”

The best place to get that knowledge, she decided, was an association that was originally

formed by groups of funders with the goal of creating an advocacy, education and support network.

“It was really created as a place where members could share ideas, wisdom and challenges and find ways to leverage their collective resources to create change or tackle problems on behalf of the industry.”

How it all started The Canadian Finance & Leasing Association (CFLA) is the only organization advocating the interests of the asset-based financing, vehicle and equipment leasing industry in Canada.

Engaging a new generation As part of the 40th Anniversary celebrations, CFLA has undertaken an exciting student co-op pilot project. The finance and leasing industry has much to offer recent graduates and young professionals, yet it is not very well known among these groups. The primary goal of this initiative is to combat that problem by creating an awareness of the industry and to create a flow of young talent into the industry.

Going forward, CFLA will take on a coordinating role. Interested member companies will be connected with Laurier University co-op coordinators so that they can hire students directly.

Should the pilot project prove to be successful and members interested, CFLA will then expand the program to include more universities and college programs from across Canada.

7 Through CFLA, members are able to influence the shape of the industry’s future within the competitive financial services sector.

Established in September 1993 through the merger of the Canadian Automotive Leasing Association (CALA) and the Equipment Lessors Association of Canada (ELAC), the Association has grown from an initial membership of 61 companies to almost 200 today.

Members range from large multinationals to national and smaller regional domestic companies, crossing the financial services spectrum from manufacturers’ finance companies and independent leasing companies, to banks, insurance companies, and suppliers to the industry.

“I knew that a lot of people I respected in the industry were members so my original intent was really to just become educated myself beyond what I was doing in my market

and see what was going on at a national level,” says Armstrong, President of Prime Capital Consulting, a leasing firm based in Edmonton, Alberta. “So I made a commitment to go to their conferences, attend all the seminars and learn as much as I could.”

Serge Masse has been a CFLA member since 1977. As an employee at a small leasing company he had two main reasons for joining the association.

“The CFLA allowed me to make contact with top level executives,” he says. “That was a great opportunity for a young leasing man.”

The other reason involved the learning experience.

“This was a great place to get industry information and learn about the market, legal aspects, environment, lobby aspects and the impact of jurisdiction and law on our business.

It was one hell of a good school and the main reason I stayed on with the CFLA.”

000001 1-855-712-3828 www.OrchidLeasing.com

Your Equipment Vendor One Hundred Thousand Dollars PAY TO THE ORDER OF

MEMO

Equipment Lease Approved

DATE 2013 - 09 - 18 $ 00

100,

000.00

/100 DOLLARS

PER

c000001c23456ba905d712d3828c

Orchid Leasing

8 Joe LaLeggia, Managing Director and Head of Scotiabank Leasing Group, agrees. In one way or another, he has been a part of the CFLA since the late 1980s. When he originally joined, there were only a handful of players and it was more of an informal association.

“It was a reason for people in the industry to get together and talk about…whatever. There really wasn’t anything formal.”

The CFLA evolution That all changed as the CFLA grew and focused their efforts on pursuing the interests of the industry with government agencies (both federally and provincially).

“Now the association is also a resource centre for its members, whether for education of understanding regulations,” says LaLeggia.

“Today it’s a thriving industry pursuit and a training centre for the industry.”

Because of the CFLA, he says, there has been a growing recognition by governments at multiple levels of how important the industry is to Canadian business.

“This really got highlighted during the financial crisis,” says LaLeggia, “where we were still, for the most part, providing finance to Canadian businesses when traditional financing wasn’t available. That sort of happened as a gradual migration and it’s been the hard work of the CFLA lobbying the government to make them understand how important we are to the economy.”

“I think that lobbying was the CFLA’s first interest,” says Masse, “but I don’t think it was their main role. Their main role was getting information out; about having competitors at the same table sharing common problems and finding common solutions. That was something big that didn’t exist before the 1970s.

Here’s to 40 more years of great service to tHe industry!

9

The Association has four key responsibilities: 1. Advocacy – to key publics including governments, media, other associations in the financial services sector, and the general public.

2. Education – providing member employees with sessions on the basics of asset-based financing and leasing as well as seminars and workshops on specific industry topics.

3. Information – providing timely information to members to alert them of changes that may directly impact their businesses.

4. Networking – providing a forum and creating opportunities for industry leaders and their employees to meet, exchange information on issues of common interest, and learn best practices from each other.

“That led to lobbying and influencing government decisions and that role has been increasing with the numerous successes that the association has had through the years.”

Success doesn’t come without challenges and a big challenge for the CFLA has been, according to Armstrong, staying relevant to the members and the industry.

“I think that the CFLA used to be very tight and very inward looking because there was a group of vehicle funders [and they had their own association] and as the equipment market started to evolve and grow the two groups found that there was enough common ground that it only made sense to work together to get more bang for our wisdom buck by putting all of the [equipment and vehicle spaces] together.

“So where I think we’re at now is an association with a strong mandate of inclusion. They want everyone that is connected to the industry to have a voice and to help determine how, with the presence of peer-topeer lending, sharing economy and all sorts of new economic trends that have been precipitated by the changing landscape of the financial world, we as an association can stay relevant and make sure that we’re ahead of the curve for consumers.”

CONGRATULATIONS CFLA For your Canadian Equipment Leasing Solutions, contact Hub Casselman at 905.361.6596 or e-mail hcasselman@tipcapital.com.

10 2008 – A turning point The largest cataclysmic changes in the industry happened in 2008 when the funding market evaporated overnight, not just for CFLA members but for the entire Canadian business community.

“Although the financial crash drained a number of players in the industry many survived and are now starting to increase their business again,” notes Masse. “I think that the

CFLA Membership Info As at June 30, 2011, CFLA had 198 members: 63% were Regular Members (that is, members active in the business of asset-based financing and leasing), the Associate Members (that is, members who supply services to the Regular Members such as law and accounting firms, funders, software developers, etc.) made up 32% of the membership. The remaining 5% of the members were non-residents.

202

proactive force to be reckoned with.

“We weren’t just going to sit back and complain,” says Armstrong. “Instead we, as an industry and an association looked at how we could transcend this problem and solve it in such a way that allows us to continue to function as an important Canadian financial resource.

“I think the fact that the CFLA had been put in place and had evolved collaboratively meant that you got a lot of heads of large companies operating in this mutual space. This allowed the industry to survive that great shift in a really dramatic way and a dramatically positive way.”

The CFLA allowed for dialogue between companies in the industry so that when something like the 2008 financial crisis happens they can not only survive but emerge from it as a stronger, more aligned industry.

“While there were a lot of challenges getting there it was the collective energy of the group via the CFLA that facilitated those dialogues with government and various financial institutions to impress upon people what the value of the industry is,” says Armstrong.

As an industry, Armstrong says, they didn’t have a great public voice and the CFLA worked really hard to create that space and make sure that the association was coast-to-coast – not just about Bay Street and the financial district.

industry has shown a great amount of resilience moving forward and professionalism of its management.”

With increased industry awareness at the This financial crisis saw amazing government level, the CFLA is now moving collaborations happen as the industry pooled its focus to the next generation of industry their wisdom and, with the guidance of the leaders.

NotAM a well known ExecucorCFLA40th_SunsetFinal.qxd:Execucor Ads 8/30/13 10:10 Page 1 vocation at the post CFLA, really gathered the troops and became a

Congratulations

to the CFLA on their 40 th Anniversary.

Proudly serving the transportation and equipment leasing industry for over 30 years 1-888-393-2826 416-LEASING www.execucor.com Across Canada

11

CFLA online CFLA’s website has become the industry’s electronic information resource centre with a growing archive of information focused on the business of asset-based financing and leasing in Canada. The site provides a range of “member-only” value added services. Changes in government policy, new legislation and regulation, the latest court decisions, legal, accounting and tax commentaries by CFLA professional members are regularly e-mailed on a timely basis to members located across the country. The delivery of timely information to members is further augmented by the regular CFLA eBulletin, an e-mail newsletter.

secondary level, the CFLA is now working to increase awareness of the industry as a career path worth pursuing.

It is a lack of knowledge, Masse says, that has kept people out of the industry.

“We’re a smaller industry than, say, banks, and we’re not as visible so they don’t know about us. What is happening now is that the CFLA is getting into business schools and attracting young commerce undergraduates to do summer work in the leasing field. By bringing knowledge of what the industry is into colleges/universities, new blood will be brought into the industry. I think this is a great integration for the association. We’ve been hoping and trying to do things of that nature for a number of years and now it’s coming to fruition.”

So what types of people are attracted to this industry? According to LaLeggia, they have to have an aspiration to be in financial services.

“The more they understand about financing the more they’ll understand that this is one component – and a necessary and well used one of Canadian businesses. They need to learn and spend time in the industry to understand it fully.”

“So not only does the CFLA have to focus on being relevant to business owners, they also have to focus on engaging the next generation and work on getting our story out better.

Most of us would say that we fell into it,” says Armstrong of her industry. “Or we got recruited. But once in the industry people tend not to leave because it’s a fabulous, exciting and innovative career. One that’s dynamic, interesting and always changing. There is lots of opportunity for growth and it’s fun!

CTL congratulates the CFLA on their achievements over the past 40 years 1660 N. Service Road East. # 102, Oakville, ON (905) 815-9510 • www.canadiantitleloans.ca info@canadiantitleloans.ca

12

CFLA Snapshots The annual golf tourname nt has always been a great place to network and work on you r handicap

John Ba

tes spea

Jim Davidson and his guest enjoy one of the CFLA's events in 1982

One of the winning teams

at this year's golf tourname nt pose with their trophy

ks at a C

FLA ev ent in 1

982

The ELAC events always drew a large crowd of industry professionals looking to share insight and gain knowledge

13 CFLA Golf Tournament

Shooting for par at the 20

13

Members of the Year 2010-2011

» Loraine McIntosh,David Dalziel, Rishi Malkani (Deloitte & Touche LLP)

(Blake Cassels and Graydon LLP) » Robin Wilks (HKMB HUB International)

2009-10

2008-09

The volunteer instructors of Canadian Lease Education On-demand (CLEO) » Angela Armstrong (Prime Capital Consulting and Forest Leasing) » Kevin Bowman (Equirex Leasing Corporation) » Michael Burke (Blake Cassels and Graydon LLP) » Jason Cooper (PricewaterhouseCoopers LLP) » Murray Derraugh (The Alta Group) » Michel Lévesque (Group Credit Lease) » Stuart Sherman ( Morrison Acceptance Corporation) » Judy Smiley » Hugh Swandel (The Alta Group) » Michael Stewart (KPMG LLP) » Steve Weisz

» Michael Collins (DealerTrack Canada, Inc.) 2007-08

The CFLA Education & Program Committee » Chair: Richard McAulie (Key Equipment Finance Canada Ltd.) » John Barraclough (Maxium Financial Services Inc.) » Gary Batchelor (Travelers Financial Corporation) » John Estey (Stonebridge Financial Corporation) » Douglas McKenzie (BAL Global Finance Canada Corporation), and » Alan Morgan (RBC Equipment Finance Group) 2006-07

» Ford Motor Company of Canada Ltd. and Ford Credit Canada Ltd.

FUNDING REPORT

14 2005-06

» Hugh Swandel (Swandel and Associates)

» Peter Freill (Securcor Group of Companies)

2004-05

2003-04

2002-03

» Mark Robinson (DaimlerChrysler Services Canada Inc.)

» Diane Sekula (CIT Financial) and Bob Westlake (GE Capital) 2001-02

» David Chaiton (Chaitons, LLP) » Tom Hopkirk (HKMB Capital Solutions) » Raja Singh (Pitney Bowes Global Credit Services) 2000-01

» Brian Stevens (MFP Financial Services) 1996-97

» Serge Mâsse (Crédit-Bail Findeq) 1995-96

» Tom Simmons (Commcorp Financial Services)

in the Canadian Equipment Finance Industry

1994-95

» Greg Korsos (Sako Leasing Inc.) 1993-94

» Tom Hopkirk (Barclays Bank of Canada Leasing Division)

$ 1,000,000,000 Accelerate the growth of your international business with HSBC. Global markets are opening up to everyone. In fact, 65% of Canadian businesses are currently involved in international markets1. That’s why HSBC has earmarked $1 billion in funding to help qualifying Canadian businesses better manage international expansion and take advantage of global growth opportunities2.

There’s a new world emerging. Work with HSBC to be part of it.

www.hsbc.ca/accelerate

Issued by HSBC Bank Canada 1. Source: Dun and Bradstreet. Total number of businesses greater than $3 Million in annual revenue doing business internationally or planning to do business internationally.

2. Subject to credit approval. As measured between 15 July 2013 and 31 December 2014.

vendor directory

Produced by Lloydmedia Inc. Publishers of Canadian Equipment Finance

302-137 Main St N. Markham ON, L3P 1Y2 T: 800-668-1838 www.canadianequipmentfinance.com

vendor directory Providing practical and cost-effective legal services to the Equipment Finance Industry for 20+ years 905.940.8700 • 1.866.508.8700 • wvllp.ca

National Appraisal Services FAST. ACCURATE. COST EFFECTIVE.

877.463.8241 www.verusvaluations.com

Since 1983, Northstar Leasing Corporation has been meeting the needs of our business clients and Broker network across Canada.

Northstar takes pride in offering fast approvals, competitive rates, and flexible terms, coupled with friendly, personal service.

Please contact Bruce Collingwood or Wayne Gray at 705-737-5595 or toll free 1-888-678-2701. www.nstarleasing.com

ÂĄÂŒÂ’Â“Â? ŽŠ£“š‘ ÂœÂĄÂ?ÂœÂĄÂŠÂ¤Â“ÂœÂš

ÂŞÂŞÂŞá€”ÂœÂĄÂŒÂ’Â“Â?Â—ÂŽÂŠÂŁÂ“ÂšÂ‘á€”ÂŒÂœÂ˜ á šá€–á‚€á ˝á ˝á€–á żá šá şá€–á ťá‚€á şá‚€

At the core of your business

• Equipment, Vehicle, Any Asset Leasing • Business First™ Solutions • Simple or Complicated Let’s talk about your leasing software needs.

888-747-RYZN (7996) | info@ryzn.com | www.ryzn.com

inovatec SYSTEMS CORPORATION

Technology Solutions for the Finance Industry

Get your ad on this page for as little as $185 per issue for all of 2013

Vendor Directory Advertising call Brent White at 905-201-6600 x 222 or email brent@canadianequipmentfinance.com canadianequipmentfinance.com | CANADIAN EQUIPMENT FINANCE | september 2013

29

Observations

Q. When is Pinto not a Pinto ?

A. It’s about maintenance records.

By Rob Birnie

hat do you have if install a $20,000 crate engine and transmission, aftermarket suspension and leather interior into a 1974 Ford Pinto? The question really touches on the underlying importance of examining maintenance records when identifying the current value of mechanical assets.

When completing equipment appraisals, Verus always request copies of work orders related to recent maintenance or upgrades of the equipment. In most cases we’re given a general description of “undercarriage work” or “inframe overhaul”, but there are times when we’re directed to filing cabinets filled with 30 years of paperwork related to the machine. Deciphering stacks of old work orders in order to identify current value is frequently a challenge. In most cases, equipment owners have a realistic view of the current value of the equipment, however we have faced cases where there is an emotional attachment to the machine and those receipts represent an “investment” to the owner.

We broadly categorize records as routine

W

30

maintenance, significant upgrades and customization.

The simple validation question we ask when examining maintenance records is “what would the value of the equipment be if this work had not been performed”.

In most cases, routine maintenance is not a direct contributor to value, but may be considered as preventing accelerated depreciation. In the most extreme example, lack of regular oil changes quickly reduces an engine to its scrap metal value. Conversely, significant maintenance contributes to value, although not typically at face value.

A typical highway tractor in-frame engine overhaul on heavy equipment can fall in the $20,000 price range. When determining value of the equipment with the engine overhaul, it is important to first consider what the value would be if the overhaul had not been performed. A potential buyer of tired equipment will likely overestimate the cost of reconditioning as well as potential downtime in an attempt to reduce the purchase price. The seller of tired equipment will frequently underestimate the cost of reconditioning in an effort to inflate the selling price. As appraisers, it is

CANADIAN EQUIPMENT FINANCE | September 2013 | canadianequipmentfinance.com

important to consider perceptions prevalent in the market and to accurately assess the contribution of maintenance.

Upgrades are much more subjective when determining the contribution of value and there In many cases, modifications to equipment are required to address specific geographic, regulatory or industry requirements. Fuel tankers are an excellent example of units subject to these types of upgrades. Oil companies impose specific requirements which all carriers must comply in order to be a service provider. As a result, the cost of these upgrades is a direct contributor to market value as any buyer of the equipment will consider that any equipment purchased will require similar upgrades.

Customization is a different story. Last year we were asked to identify value of a 1960s era Kenworth Needlenose truck.

When we inspected the unit, we found that the truck had original sheet metal and engine, but that these components had been mated to a late model transmission and mounted to a customized frame.

As a result, the truck could only be considered a fully customized truck. In this case, the truck was not suitable for service as a “work truck” and didn’t fit the requirements of a collectible. As a result, when we examined the market, we found limited demand for the complete truck. Value, from a financing standpoint, could only be based on the resale value of individual components and was significantly less than that reflected in the stacks of completed work orders.

Which brings me back to our car. The answer is obvious – you have a 1974 Ford Pinto!

About the Author: Rob Birnie is a Certified Machinery and Equipment Appraiser (CMEA), Master Marine Surveyor (MMS), Senior Business Analyst (SBA) and an active member of the Vancouver Board of Trade. Rob has applied his hands-on experience in mechanical and marine repairs and more than 19 years of insurance damage appraisal, valuation and loss settlement experience to create and direct Verus Valuations.

$ 1,000,000,000 Accelerate the growth of your international business with HSBC. Global markets are opening up to everyone. In fact, 65% of Canadian businesses are currently involved in international markets1. That’s why HSBC has earmarked $1 billion in funding to help qualifying Canadian businesses better manage international expansion and take advantage of global growth opportunities2.

There’s a new world emerging. Work with HSBC to be part of it.

www.hsbc.ca/accelerate

Issued by HSBC Bank Canada 1. Source: Dun and Bradstreet. Total number of businesses greater than $3 Million in annual revenue doing business internationally or planning to do business internationally.

2. Subject to credit approval. As measured between 15 July 2013 and 31 December 2014.

GE Capital Commercial Distribution Finance

LIKE A BANK: WE CAN LOAN YOU MONEY. UNLIKE A BANK: WE KNOW THAT MONEY ALONE DOESN’T DRIVE RESULTS. At GE Capital, we’re not just bankers, we’re builders.

We understand that building a better business takes more than just working capital. It requires human capital – intellectual capital. Whether it’s wholesale inventory financing or access to GE’s vast, real-world expertise, our professionals will make sure you have the right capital for the right job. Our proven approach to lending and advanced online reporting tools are helping businesses make faster, more informed decisions.

Isn’t it time you stop just banking and start building?

Call our team today at 888-609-5550.

www.gecdf.ca/cef

facebook.com/GECDF @GEInventoryFin © 2013 General Electric Capital Corporation. All rights reserved.

13CDN115