Leasecomm Corporation-  Equipment Leasing  -  Category Directory

www.microfinancial.com 

Sales

$92 million

Business Description 

Leasecomm Corporation, a whole owned subsidiary of MicroFinancial Inc.,

s a specialized equipment leasing company that leases and rents "microticket"

equipment and provides other financing services in amounts generally

ranging from $400 to $15,000, with an average amount financed of approximately $1,900
and an average lease term of 44 months. Leasecomm Corporation started
originating equipment leases in January 1986. The Company has used proprietary software in
developing a sophisticated, risk-adjusted pricing model and in automating its
credit approval and collection systems, including a fully-automated,
Internet-based application, credit scoring and approval process.

The Company provides financing to lessees which may have few other sources
of credit. The Company primarily leases and rents low-priced commercial
equipment, which is used by these lessees in their daily operations. The Company
does not market its services directly to lessees, but sources leasing
transactions through a nationwide network of independent sales organizations and
other dealer-based origination networks.

As of September 30, 2002, the Company's credit facility failed to renew.
Renewal of the credit facility required 100% participation from the nine
lenders, and one of the lenders chose not to renew. As a result, in October
2002, the Company was forced to suspend virtually all new contract originations
until a source of funding is obtained or at such time that the senior credit
facility has been paid in full. During 2003, the Company was able to fund a very
limited number of new contracts using its own free cash flow.  The Company is
currently working with a capital advisory firm in an effort to obtain a new line
of credit in order to resume funding activity. 
 

Ticker

MFI

SIC Code

6159 Miscellaneous Business Credit Institution

Equipment Leasing Companies in the Directory

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MicroFinancial