Docstoc

board

Document Sample
board Powered By Docstoc
					Department               LOL Phase                                    Action                                                                    Result                                  Roll the Dice Dice #
Account Maintenance Origination       Deal has been booked in LeasePak!                                     Collect $1000
Account Maintenance Termination       Lease payoff is recorded in LeasePak                                  Collect $1000
Accounting              Maintenance   Pay Vendor for equipment                                              Deposit $500
Accounting              Maintenance   Salesperson is paid commission                                        Collect $1000
Accounting              Maintenance   Lease transactions are balanced on General Ledger                     Collect $100
Asset Management        Origination                                                                          still make a
                                      A high residual is set, which enables us to set lower payments andCollect $200healthy profit.                                                   Valuation
Asset Management        Origination                                                                         Deposit $200
                                      A low residual is set, which forces us to set higher payments in order to make a profit                                                         Valuation
Asset Management        Termination   Client opts for "wrap, roll, & extend" at a substantial profit        Collect $1000
BPU                     Origination   Gather documentation                                                                                                                            3-Documentation
BPU                     Origination   Client forgot to sign Master Lease Agreement                          Miss a turn                                                               3-Documentation
BPU                     Origination   Docs are generated and sent to client                                 Collect $100                                                              3-Documentation
BPU                     Origination                                                                           ask a turn
                                      Can't get your work done because salespeople keep calling you toMiss if you've done your work                                                   3-Documentation
BPU                     Origination   Docs come back from client and everything is in order                 Collect $300 and proceed to Account Maintenance                           3-Documentation
Client                  Origination   Principal can be PG                                                   Proceed to BPU so they can add PG to application
Client                  Origination   Principal cannot be PG. The deal is dead.                             Forfeit all money & return to Square 1
Collections             Maintenance   Client receives call when 30 days past due                                                                                                      Delinquency         1
                                                                                                            Client needs to restructure payments. Agreement is made. Send information to Account Maintenance for modification in LeasePak
Collections             Maintenance   Client receives call when 30 days past due                            Client is sorry and is sending check. Collect $300.                       Delinquency         2
Collections             Maintenance   Client receives call when 30 days past due                            Client says can't pay this month. Miss a turn.                            Delinquency         3
Collections             Maintenance   Client receives call when 30 days past due                                                                                                      Delinquency
                                                                                                            Client says that payments has not been made because equipment is not as agreed. Return to4     Sales (where?)
Collections             Maintenance   Client receives call when 30 days past due                                                                                                      Delinquency
                                                                                                            Client says they are bankrupt and provides filing number. Deposit $500 and proceed to Workouts5
Collections             Maintenance   Client receives call when 30 days past due                                                                                                       and miss a
                                                                                                            Client says they are not paying and never will. Consult with your manager Delinquencyturn.    6
Compliance              Origination   Client failed OFAC check                                              Deposit $500 and return to Square 1
Credit                  Origination   Deal was declined because KEF has too much exposure to the client     Consult with Syndications to see if deal can be sold                      2-Credit decision 1
Credit                  Origination   Deal was approved!                                                    Collect $500                                                              2-Credit decision 2,4,5
Credit                  Origination   Deal was declined because company has bad credit                      Ask client if principal will be personal guarantor                        2-Credit decision 3,6
Customer Service        Maintenance   Client has requested an address change                                Send information to Account Maintenance for modification in LeasePak Inquiry
Customer Service        Maintenance   Client called with questions about account                            Collect $200 for providing excellent customer service                     Inquiry
Customer Service        Maintenance   Client called and wants to pay lease off early                        ??????????                                                                Inquiry
Payment Processing Maintenance        Client made a payment and payment is recorded in CCA                  Collect $500
Payment Processing Maintenance        Client made a payment and payment is recorded in CCA                  Collect $500
Payment Processing Maintenance        Client made a payment and payment is recorded in CCA                  Collect $500
Payment Processing Maintenance        Client made a payment and payment is recorded in CCA                  Collect $500
Portfolio Management Maintenance      Portfolio Management reviews KEF's exposure to client                 Exposure is too great and deal needs to be sold. Proceed to Syndications.
Portfolio Management Maintenance      Portfolio Management reviews KEF's exposure to client                 Exposure is not too great. Lease stays on the books.
Pricing                 Origination   Current deal structure is not yielding a sufficient ROA               Consult with Pricing on how to modify structure to increase ROA
Remarketing (off-lease) Termination                                                                         Pay
                                      Residual was set too high and asset is sold at auction for a small loss $250
Remarketing (off-lease) Termination                                                                         Collect $500
                                      Residual was set very low and asset is sold at auction for large profit
Remarketing (off-lease) Termination                                                                         Collect
                                      Residual was set just about right. Asset is sold at auction for small profit $250
Remarketing (on-lease) Termination    Residual was set low and asset is sold to client for large profit     Collect $500
Remarketing (on-lease) Termination    Residual was set high and asset is sold at breakeven price
Remarketing (on-lease) Termination                                                                          Collect
                                      Residual was set just about right. Asset is sold to client for small profit $250
Sales                   Origination   Client is uncomfortable with unknown of FMV                           Consult with Pricing on early buyout options                              1-Proposal          2
Sales                   Origination   Client rejects your proposal because payments are too high.           Proceed to Asset Mgmt to see if they can set a higher residual.           1-Proposal          3
Sales                   Origination   Client rejects your proposal because payments are too high.           Proceed to Pricing to see if they can come up with a different structure. 1-Proposal          4
Sales                   Origination   Client rejects your proposal because payments are too high.                                                                                     1-Proposal          5
                                                                                                            Tweak numbers in SuperTrump. Client accepts new proposal. Collect $1000 and proceed to the BPU get the deal done
Sales                   Origination   Client accepts your proposal                                          Collect $1000 and proceed to the BPU get the deal done                    1-Proposal         1, 6
Sales                   Termination   Call client about end of term options                                 Client wants to purchase equipment. Proceed to on-lease Remarketing End of term
Sales                   Termination   Call client about end of term options                                 Client wants to return equipment. Proceed to off-lease Remarketing        End of term
Sales                   Termination   Call client about end of term options                                 Client wants to renew lease. Proceed to Asset Management                  End of term
Sales                   Termination   Call client about end of term options                                 Client wants to just keep making payments for now. Collect $1000.         End of term
Sales                   Origination   You are having trouble pricing your deal in SuperTrump                Proceed to Pricing for SuperTrump training                                Follow-up
Sales                   Origination                                                                         If you chose needs - Fair turn                                            Agreement (CSA)
                                      Client says they want to own the equipment. Which product more likely fits theirFMV, miss a Market Value (FMV) lease or Conditional Sale Initial Meeting
Sales                   Origination                                                                         If you chose fits their needs -                                           Initial Meeting
                                      Client says they want the lowest possible payments. Which product more likely CSA, miss a turnFair Market Value (FMV) lease or Conditional Sale Agreement (CSA)
Syndications            Origination   Your lease has been sold                                              Collect $1000 and return to Square 1
Syndications            Origination   The deal cannot be sold. The deal is dead.                            Return to Square 1
Syndications            Origination   The deal can be sold.                                                 Continue
Tax                     Maintenance   Property tax must be paid on the asset.                               Deposit $200.
Tax                     Maintenance   Property tax must be collected on the asset.                          Collect $200.
Tax                     Origination   You're having trouble structuring your lease                          Proceed to Tax for a consultation
Tax                     Origination   Sales tax must be paid on the asset.                                  Deposit $200.
Tax                     Origination   Sales tax must be collected on the asset.                             Collect $200.
Tax                     Origination   Client is requesting specific tax treatment in lease structure        Consult with Tax
Workouts                Termination                                                                         lease is $1000
                                      The best deal we could negotiate is .10 on the $1. Total return on Deposit negative
Workouts                Termination                                                                         lease is $500
                                      The best deal we could negotiate is .50 on the $1. Total return on Deposit neutral

                                                                                                     Residual
                                                                                                     Spread
                                      Usually, the LM will send a document package - this usually is 8-15 pages consisting of a term sheet or proposal, invoice package, pricing run, and any approval emails he might have. A credit write up or amendment is usually supplied as well. When the BPU receives the complete package, it's assigned to an account manager who documents the deal according to the specific terms laid out in the proposal.

tax - sales                           is it subject to sales tax? If not, then must be signed off by tax (need tax exempt cert) - are multiple states/assets involved?
                                      code as tax exempt & never consult w/Tax. Audit will req support & maybe we can't provide support. May have to go to client 3-5 years later & maybe client is no longer in business (tax, penalty, interest)
tax - sales                           decision how lease is taxed - upfront or stream; upfront on basis equip costs; upfront/stream dictated by state tax law & tied to lease type (fmv is 96% time taxed on stream; $1 out is usually upfront)

tax - property        origination     treatment & coding decisions - report asset when we need to
                                      property tax reporting flag must be set to "yes"
                                      kgf many municipalities cannot pay property tax - tax must be built into trnsxn (KEF not a muni & must be paid; we should try & build tax into payments)

                                      equipmetn address is crucial - must be in right location
                                      asset class code - how we depreciate asset for preopty tax purposes - e.g. fax but classify it as a production line; may depreciate over wrong term and cust will pay more $$ in property tax

                                      Just one clarification at the end of your property tax section. While KEF is not the owner for income tax purposes with a nontax FMV product, we are for property tax. I think of this product as a tax hybrid (it is treated differently for sales tax/property tax vs. income tax). The reason being is that generally the customer has the option to purchase the equipment or return the equipment. Because the customer can return the equipment states will generally deem that KEF owns the equipment and thus reports and pays pptx.
                                      KEF only excludes from our property tax filings $1 outs (which are a mandatory $1-no option), PUTS/balloons or Loans/IPAs.




cust service                          they're moving
                                      5 basic categories: doc requests (PIF letters, bills of sales, invoice, pmt history, title, interest letter requests); payoffs; billing questions (process pyaments, invoice wrong, late fee, insureance fee, courtesy insurance, payment misapplied, doc fee questions at begin lease); change requests (address changes, due date changes, PO changes (each year the number may change & we update our invoice), name change requests (bought out, DBA); misc (taxes, titles); account inquiry (pmt terms, itnereste rate, balance, status, acquisition cost, asset info)
                                      what is the status of my return - look at notes in LPK               rarely actually transfer tucstomer - usually contact internal on own
                                      early payoff - before end of lease
                                      vs getting to end of lease

                                                                                                           purchase price, creditware/expresslink or dms
                                      pull up their contract & see what end of lease options - $1 out, set docs could be inFMV, return
                                                                                                           may need to send letter of their intentions
                                      provide w/buyout quote (generated in ePak (payoff quotes) - cust keeping equip - asset mgmt gets involved to "end of lease" dept (asset mgmt)
                                      asset mgmt provides buyout quote; once paid off they are provided with return instructions
                                      contract usually says 60-120 days before end of lease

                                      common problem: we get calls for sales - who calls go to? Existing customers who want to do new business - have a more direct route to sales or easier way to find info on wikey (including syndications)
                                      bill of sales & PIF letters - who gets 'em; it's complicated to tell if an account is paid off (it's a LPK thing) - there's no clear picture of
                                      bpu enters apps - comm error to LPK uses main company address instead of mailing address - invoices go to wrong address & cause late/no payments


booking               booking         gold > lpk; audited; book assets & book application; bill/assess fees like doc fees (can apply money already received) - account mgr can notate that money is in CCA (database for unapplied cash) & apply to 1st payment (invoice goes out & cust calls cust srvce); certain states assess upfront sales tax - invoices are not generated from LPK come from cleveland
                                      pick the wrong "bill to" - they don't see docs - if BPU doesn't pick correct individual then bill goes to wrong person; wrong commencement date, cost

                      maintenance change addresses, change lease structures, adding PO (# may only last a year), partial payoff of an asset, 30-90 day skip payment, - centralized mailbox BOOKing & AMT
                                  incorrect lease #, no signatures on docs or wrong signatures (customer or internal)

                      lease ends      process a payoff (LPK & CCA) (sometimes bill lessee or 3rd party or apply in house $$); payoff (they keep equip) vs terminate (if we keep equip) - remarketing sends email or cust service does epak quote & $$ are tagged for payoff when they come in
                                      wrong effective date (e.g. Jul rent & we send payquote today, we don't know what to do - do we apply it to Jul or do we take it out of proceeds amt) - can effect asset mgmt gain/loss - if they said pay off in Jun & they still had Jul invoice open & then cust sent in Jul pmt then we don't know what to do; or if the used Aug effective & didn't want to include Jul pmt they still owed then cust gets Jul bill when they thought it was included in payoff) - coming from cust srvce or asset mgmt
                                      if no proeprty tax est included ('08 tax billed in '09) - we eat it or bill cust a year later if we didn't get estimate to cust ("I paid that lease off a year ago"); asset mgmt or epak quotes should include a property tax estimated



accounting            main            managing blanace sheet reconciliatin process
                                      errors/problems show up in reconicliations - pmt posting, asset mggmt, tax,
                                      leasepak is its own accoutings sytem
                                      lpk is createing GL entries when people do financial stuff          lpk has to spit out file that maps to GL at end of day
                                      cost centers? PCRO changes impact GL; acct maint
                                      KGF v KEF is imp
                                      runoff busnss vs go forward busnss
                                      we want to track how $$ come & go based on desired "slices" e.g. energy
                                      strategic changes in LPK effect accnting
                                      when changes are made to specific vendor prog agreemetns it's good to keep accnting in loop; e.g. start paying fee to vendor on cisco deals; sometimes need to talk to BPU about what was done; e.g. asset mgmt had to cut a check to network appliance beacuase we had a sharing agreement; income would be overstated because we were recognizing income that wasn't ours; must explain to senior mgmt why there are reconiciliation items
                                      improve comm between accoutning & bpu; once things get booked it's "too late"
                                      vendor - smt leasing - we are going tos ahre 50% of itnerim rent w/them & 50% of progress interest (nebulous calculation) - bpu rested a wire for $22k - why did we send this ; if accoutning knew we would have setup a payable; also deal may not be in best interest of company - if we have reporting probs it's hard to tell; also a compliance issue - we msut steup a payable when we're recognizing our income (we're overstating income) - would have enabled them to setup a payable & then we've correctly accounted for it; things outside of the norm
                                      could also consult w/accoutning on complexity of calculation; may take more time to calculate payable then we get from ddeal
                                      when funds are misapplied - we have "rec" items
                                      canadain $$ checks that come in can be problematic - we have to reconcile later because cust account is misstated
                                      remarketing should not be sending invoices w/us addresses if canadian company
                                      COS - change of status - AMT does it but initiated by other depts e.g. Asset Mgmt, PMG
                                      tax reporting - go thru all data (corp income tax) - send them periodic data; but if LPK books/reverse it gets ugly when reporting to Corp
                                      COS issues can show up when doing "rec" - maybe COS; e.g. when sales & then no income; it's the status changes that drive results - is that valid/what we expect - fix it if not
                                      keep accounting in loop if changes, status changes or income/expneses; check w/LPK
                                      bank underwritten deals impact bank too when we have problems
Meeting)
 (Initial
  Sales
 (Prospecting)                  Account
     Sales       Reporting to
                              Maintenance   Workouts
                 Management
                              (Lease End)
            Customer
Remarketing
             Service     Life      Payment
             (End of
 On-Lease              Happens!   Processing
              Term
 Off-Lease
            Options)
  Portfolio
              Collections
Management
             Asset
Pricing
          Management




         OST:
      The Leasing
    OST:
The Leasing
 Simulation
             Customer
   Tax
              Service
(Property)
             (Inquiry)
      Tax     Syndications
    (Sales)    (Consult)




T:
asing
T:
asing
 tion
               Account
 Payment
             Maintenance
Processing
              (Updates)
Compliance   BPU   Credit
                              Sales
                            (Proposal)
                            Life       Account
             Collateral
Accounting                           Maintenance
             Services     Happens!    (Booking)
Syndications
  (Sales)
Front:
               1                                                               number cards so they're in proper order in deck?



                   Collections



Back:
            Client receives call when 30 days past due
               1     Client needs to restructure payments. Agreement is made. Send information to Account Maintenance for m
               2     Client is sorry and is sending check. Collect $300.
               3     Client says can't pay this month. Miss a turn.
               4     Client says that payments has not been made because equipment is not as agreed. Return to Sales (where
               5     Client says they are bankrupt and provides filing number. Desposit $500 and proceed to Workouts
               6     Client says they are not paying and never will. Consult with your manager and miss a turn.


Pricing
            The Pricing department works with Sales to help set structure and price the lease effectively. One aspect of this rela

Asset Management
          The Asset Management department sets the residual for the asset. The residual represents how much we think the

Remarketing
          The Remarketing department sells the equipment. If the lessee buys the equipment, it's done through On-Lease Re

Collectability
             Roll the dice and review your scorecard to determine whether we get paid or the client goes bankrupt

Credit
            Roll the dice to determine whether your client has good (1-4), OK (5), or bad (6) credit. With that knowledge, decide

initial meeting
                  FMV
             I want the lowest possible price
                  CSA
             I want to own the asset

tax - do we pay property tax on csa - bill???
 #NAME?
what about income tax treatment?
y're in proper order in deck?




 Account Maintenance for modification in LeasePak


reed. Return to Sales (where?)
 oceed to Workouts




ively. One aspect of this relationship can be determining the spread. Whether on their own, or in conjunction with Pricing, the salesperson m


ents how much we think the asset will be worth at the end of the lease term. A relatively low residual means we think the asset will not be wo


 done through On-Lease Remarketing. If the lessee returns the equipment, and we must sell it to a third party, it's done through Off-Lease R


oes bankrupt


With that knowledge, decide whether you want to approve the deal, decline it, or approve it with a personal guarantor. Declining the deal mea
ction with Pricing, the salesperson must determine how much profit they want to try and build into the deal. Spread is the difference between


ans we think the asset will not be worth much at the end of the term - this means that the lease payments will need to be higher to compensa


 party, it's done through Off-Lease Remarketing.




nal guarantor. Declining the deal means you will have to start from square 1, but if you approve it and then later the client goes bankrupt, then
al. Spread is the difference between what KEF pays for the money involved in the lease, and what it charges the client for that same money.


ts will need to be higher to compensate for the asset's devaluation, which has the effect of making the lease less attractive to the client. Con




en later the client goes bankrupt, then you will forfeit all your money and start from square 1 anyway, and you will be way behind the other pla
 rges the client for that same money. A low spread means we are not charging the client much more than it costs us - this means that the de


ease less attractive to the client. Conversely, a relatively high residual means we think the asset will have significant value at the end of the te




d you will be way behind the other players. If you approve the deal with a personal guarantor, you will have to miss a turn while the BPU gets
n it costs us - this means that the deal may be less profitable for us, but it also can mean that it will more likely be accepted by the client. Con


e significant value at the end of the term, which enables us to set lower payments, and has the effect of making the lease more attractive to t




ve to miss a turn while the BPU gets the PG's info, but then you can continue on. Just keep in mind that getting a PG on an account with bad
e likely be accepted by the client. Conversely, a high spread means we are charging the client much more than the money costs us, which w


making the lease more attractive to the client. Based on this information, decide whether you want to set a high, medium, or low residual. Cir




getting a PG on an account with bad credit is still no guarantee, and later on the client may go bankrupt and we still won't get paid.
re than the money costs us, which will make the deal more profitable, but also less likely to be accepted by the client. Based on this informat


 a high, medium, or low residual. Circle your choice on your scorecard.




and we still won't get paid.
by the client. Based on this information, decide whether you want to set a high, medium, or low spread. Circle your choice on your scorecard
Circle your choice on your scorecard.
Scorecard:
Product Type: FMV                             CSA
Circle the choice you make
residual    hi             med                            lo
spread      hi             med                            lo
credit     bad             OK                            good
approval pproved
         a           approved with PG




Proposal Acceptance
                                                        residual
                             hi                          med                            lo
           hi    1-3 rejected, 4-6 accepted   1-4 rejected, 5-6 accepted    1-5 rejected, 6 accepted
spread    med    1-2 rejected, 3-6 accepted   1-3 rejected, 4-6 accepted    1-4 rejected, 5-6 accepted
           lo    1 rejected, 2-6 accepted     1-2 rejected, 3-6 accepted    1-3 rejected, 4-6 accepted


Remarketing Profitability
                                                        residual
                             hi                          med                            lo
           hi    0                            $                             $$
spread    med    -$                           0                             $
           lo    -$$                          -$                            0


Collectability
                        approved                    approved w/PG
           bad 1-5 bankruptcy, 6 pays         1-4 bankruptcy, 5-6 pays
           OK 1-3 bankruptcy, 4-6 pays        1-2 bankruptcy, 3-6 pays
          good 1 bankruptcy, 2-6 pays         pays




Payment Processing
                                                        residual
                             hi                          med                            lo
           hi    $                   300.00   $                    400.00   $                   500.00
spread    med    $                   200.00   $                    300.00   $                   400.00
           lo    $                   100.00   $                    200.00   $                   300.00
client wants a hi residual & a lo spread
KEF wants a lo residual & a hi spread

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:3
posted:4/23/2012
language:
pages:25