30 YEARS OF RAISING THE BAR: DAVE SCHAEFER ON THE BENEFITS OF CLFP DESIGNATION
Along with First American Equipment Finance’s Bill Verhelle and Dave Schaefer of Orion First Financial and Mintaka Financial, spoke with Monitor to discuss the benefits of the CLFP designation in the equipment leasing and finance industry — and why advocating it at all levels of an organization is key to the Foundation’s continued growth.
You can read more about Dave’s thoughts on the benefits of CLFP designation by clicking the link below. This article was published in the May/June 2015 issue of the Monitor.
Click the image to the left to download a PDF
of Dave's article from the Monitor or
CLICK HERE to read the article online.
“It’s a general certification. It’s not a single discipline. That’s the value of the certification: it’s a very broad body of knowledge. If you are in underwriting, you might know underwriting really, really well, but you might not know collections or accounting. That’s why the certification is valuable; it’s to make sure you have a broad body of knowledge.”
ORION TO PROVIDE PORTFOLIO MANAGEMENT SERVICES FOR JOULE ASSETS
GIG HARBOR, WASH. - Orion First Financial, LLC has begun servicing contracts for Joule Assets, a New York-based company that delivers financing solutions for energy efficiency (EE) and demand response (DR) initiatives and projects through the creation of Energy Reduction Assets (ERA). Joule Assets seeks to bring a new level of transparency and easily accessible information to the EE and DR marketplace while simultaneously stewarding growth in this exciting industry. Orion is pleased to announce that it will provide billing and collecting, front-end collections and commercial collection services for Joule Assets.
"Orion's commitment to creating value and profitability for the finance industry has enabled them to take proven and unique methods to their service technology. We believe that it’s the best on the market, and look forward to the collaboration,”said Dennis Quinn, COO and co-founder of Joule Assets. We’re very excited to provide portfolio management services for a visionary group such as Joule Assets. Their objectives and initiatives in funding energy efficiency and automated demand response technologies in the rapidly expanding small and medium commercial market are a testament to their technology platform, expertise and drive. We are truly humbled to work with such an amazing and forward-thinking group of people,” said Shannon Green, President of Orion First Financial.
About Orion
Orion First Financial (@OrionFirst) is a portfolio services management leader in the small business lending marketplace. Orion specializes in underwriting, contract servicing, commercial collections, and strategic advisory to those originating loans in the SMB market. As a multifaceted and innovative equipment finance company, Orion can effectively engage with Alternative Lenders, Leasing Companies, Equipment Vendors/Manufacturers, Banks and Financial Institutions. Orion’s skilled team, efficient technology platform and best practices approach, generate exceptional industry performance metrics that translate into better profits, less stress and enriched customer relationships for their clients. For more information about Orion First Financial, LLC please go to www.orionfirst.com.
About Joule Assets
Joule Assets (@JouleAssets) is a smart grid software and investment company focused on facilitating commerce in Energy Reduction Assets (ERAs). To find out more please visit www.jouleassets.com.
RISKY BUSINESS AND BENCHMARKING ALTLEND AND DAILY FUNDER RECAP
Banks, investors, and innovative lenders from across the country assembled this past September at the AltLend Innovative Finance for Small Business Conference to discuss critical aspects of the booming small business lending space.
This year’s AltLend Conference saw numerous speakers from Lendio, Fundation, SmartBiz, Merchant Cash & Capital, Lending Club, Dealstruck, Funding Circle, Kabbage, Creditera, Biz2Credit, Prime Meridian Capital Management and Direct Lending Investments speak on various themes and opportunities within the small business lending marketplace.
One such conference discussion saw Orion First Financial Founder and
CEO, David T. Schaefer, team up with BIZ2Credit Founder and CEO, Rohit Arora, to speak about risk in the evolving P2P and Direct Lending space. Their topic: Understanding Risk: Benchmarking and Stress Testing Innovative Small Business Loans.
Keeping things topical, Mr. Schaefer fleshed out the internal and external factors that contribute to a portfolio’s performance. From underwriting to cyclical conditions, Dave sought to uncover certain truths as they relate to a market in flux undergoing a paradigm shift. His thesis? Combine algorithms, gut instinct and – most importantly – performance history, to make better funding decisions across the board.
You can read more about Dave’s thoughts on understanding risk for better performance in this emerging marketplace by clicking the link below. This article was published in the September/October 2014 issue of the Daily Funder.
Click the image to the left to download a
PDF of Dave's article from the Daily Funder or
CLICK HERE to read the article online.
ORION FIRST TO PROVIDE SERVICING OF RAISEWORKS CONTRACTS
GIG HARBOR, WASH. - Orion First Financial, LLC has begun servicing small business loans for Raiseworks, LLC, a New York-based company that operates anonline direct lending platform connecting SMEs with institutional investors. Services Orion provides include Uniform Commercial Code (UCC)-related services, invoicing, payment processing, customer service and commercial collections.
Orion is providing a turnkey, comprehensive contract administration platform to supplement Raiseworks’ ongoing activities and help the company scale effectively.
“More than half of small businesses are unsuccessful in obtaining credit, and Raiseworks addresses this gap by revolutionizing the way private companies seek alternative finance options,” said GaryChodes, CEO of Raiseworks. “As we continue to grow, Orion’s services will help us to solidify our leadership position in the SME lending market and connect more private companies with institutional investors.”
“We are thrilled to provide a broad range of services for Raiseworks,” said Shannon Green, President of Orion First Financial. “Their mission to improve small business access to capital really resonates with us here at Orion. Their position in the burgeoning online finance marketplace makes our partnership all the more exciting. We look forward to fostering a mutually beneficial relationship with Raiseworks for years to come.”
About Orion
Orion First Financial, located in Gig Harbor, WA, is an independent servicer for the commercial finance industry. Orion specializes in contract servicing, commercial collections and strategic advisory services for small business lenders. As a multifaceted and innovative company, Orion can effectively engage with a variety of lenders, investors and other participants in this fast growing segment. Orion’s skilled team, efficient technology platform and best practices approach, generate exceptional performance metrics that translate into better profits, less stress and enriched customer relationships for their clients. For more information about Orion First Financial, LLC please visit orionfirst.com.
About Raiseworks
Raiseworks operates an online direct lending platform that connects small businesses with institutional lenders looking to lend directly to private businesses. The company improves small business access to capital by leveraging technology to lower the cost of customer acquisition and loan application processing resulting in a dramatic acceleration of the application-to-funding cycle. For institutional lenders, Raiseworks opens the door to opportunities to invest directly in credit-worthy private businesses while earning stable, attractive returns.
JOE COLLINS JOINS ORION FIRST FINANCIAL
GIG HARBOR, WA – Orion First Financial, LLC announced today that Joe Collins, formerly an Account Executive with International Decision Systems, has joined Orion First Financial as Senior Vice President, Business Development Officer.
“Orion’s determined plan for growth dovetails perfectly with the relationship management experience and sales skillset that Mr. Collins brings to the table,” said Shannon M. Green President of Orion First Financial. “Joe’s experience in the equipment finance marketplace, and record of success, makes him a perfect fit with us here at Orion.”
“The experienced staff at Orion delivers significant value to their customers,” added Joe Collins. “I’m looking forward to getting the word out about our portfolio servicing and commercial collection services with its very strong track record of results, and further growing the customer base.”
Mr. Collins is a seasoned sales executive with a rich background in relationship and account management. A 25 year veteran of the equipment finance industry, Joe brings his experience in building and maintaining professional relationships to Orion First Financial.
Mr. Collins has deep roots in the industry, having served as Vice President of Membership in the ELFA for over nine years. Joe received his Bachelors degree from Bradley University and continued on to the University of Illinois - Chicago where he earned a Masters Degree in Public Administration.
KEEP YOUR LEAN BUSINESS PROCESS A CUSTOMER-CENTRIC ONE
Keep Your Lean Business Process a Customer-centric One
By David Schaefer
There has been a recent resurgence, or perhaps a revisiting, of lean processes and principles as they pertain to running an efficient and effective business. The philosophy itself can be traced back to the times and wisdom of Benjamin Franklin and Henry Ford. When stripped down to its essence – or dare I say, the leanest definition of lean – it’s the preservation of value with less work. When framed through the lens of day-to-day business operations, this means that the end goal should be focused on creating value for the customer, while using as few resources as possible and eliminating wasteful activities.
Many people believe that lean processes are reserved solely for enterprise level companies, or a term thrown around in manufacturing and other large scale production facilities. This is simply not the case. The systems and methodologies associated with lean business processes should be adopted by businesses of all sizes in order to maximize and optimize operational efficiencies.
As the CEO of a small business performing Loan and Lease Management Services in the commercial equipment industry, I can really only speak from my experience and hope that there are some universal truths that can be applied to any type of business.
Let me start by reiterating what I believe to be the end goal of lean processes and principles – to provide ultimate value to your customer. This basic truth must always be the litmus test by which we navigate the sometimes muddied waters of developing better systems for our business. It is not always clear where the ‘short circuit’ is when beginning to re-engineer and retool workflow processes. Finding the tools and time needed to identify and remove wasteful practices that don’t add to the customer’s satisfaction is a constant endeavor.
When I started Orion First Financial, some twelve years ago now, we made a concerted effort to build a foundation and culture of customer satisfaction. We focused on this fundamental first, and secondarily, on developing scalable and efficient processes and systems. We began by acquiring software and made it fit processes we had learned from our previous years of experience in the industry. We added staff as volumes increased all the while maintaining a key awareness of pleasing the customer by delivering what they wanted.
Ultimately, we found ourselves growing revenue, but our profit was not growing as fast. Hiring more people just wasn’t the answer, so we began to look at the problem differently, using lean management as a guideline.
We identified and documented our core values and standards: Excellence, Collaboration, Integrity and Adaptability; so that as we started looking at changing how we did things, we would not stray from our core culture and our mission of delivering peace of mind to our customers and stakeholders.
We focus on client expectations, scoping out in detail the client’s desires, and memorialize the key deliverables - so both parties have clear expectations. Managing expectations is so crucial throughout this process and requires adept communication at all touchpoints. I find this step to be very important as it relates to lean, because you must have a clear understanding throughout the chain of what is the goal. We have found that describing the deliverable clearly and specifically helps in designing the right process, not just an efficient one. This can be very enlightening and ensures that everyone on the project, including the client, knows what the final output will be. Behind the scenes, and before agreements are generated, our staff reviews each client expectation and ensures that there are processes in place to meet those expectations within specified service levels.
We have found that documenting the current processes or what we call the “As Is”, is a good first step when tackling a functional area. The objective is to understand why we do what we do. This can be a very tedious process, but learning why helps us to understand how a process evolved over time. Once we have a good understanding of the “As Is”, we then begin to edit the processes and remove or consolidate steps. We have found that many steps in the process added very little customer satisfaction value. Some of the steps may be required to comply with rules and regulations and may not be able to be eliminated. Either way, our goal is to build the “To Be” process that focuses on the fewest steps, to give the greatest customer satisfaction. The result is that we have a dynamic back office workflow that is fluid and always becoming more efficient and more streamlined.
Most recently, we focused on our credit and underwriting areas, as the workflow was almost entirely manual in process. Our credit staff was becoming overwhelmed, so we took up this functional area. When the team saw that they could produce more results with less work, it sunk in and has generated momentum. Many years back, we found ourselves in a similar dilemma in the collection area, as we had mostly manual processes. We were able to leverage more of our backend systems and developed a proprietary Collection Management and Reporting System (CMARS™). The development and implementation of this system has allowed us to grow our portfolio under management significantly, with very little staff growth.
When you begin to understand and document the processes in your organization, you are then positioned to bring reporting and measurement into the picture. Performance can be improved as Key Performance Indicators are established and systems are in place to monitor and report performance. Orion monitors KPI’s in every area of our operation, and a dashboard comparing current and historical performance is distributed on a daily basis. Monthly staff meetings and routine departmental meetings are used to communicate Orion’s performance. By tracking and measuring results, we are able to keep the entire team aware of where we are at, at all times, which ensures that we are all pulling in the same direction to attain the desired results. The end goal is being able to transcend the details to create a service culture that reinforces client satisfaction.
We are a service provider, so our objectives are focused on delivering peace of mind to our customers. Collaborating with clients is greatly encouraged within our organization. Capturing and reporting KPI data and delivering this information to clients, combined with routine and consistent monthly client briefings and portfolio reviews, provides transparency and builds greater trust with the client. We exist to satisfy clients, and enjoy delivering a suite of robust services so they can place more emphasis on growing their businesses.
So, don’t let lean intimidate you. It isn't just large companies and manufacturers. Many do it without even knowing that they are practicing some of the principles. It can be as simple as where to put the copier or printer so it is close to those that need it most. The real advantage of implementing lean systems and methodologies is that it gives a common language and structure to your business - so everyone in the organization can be looking for ways to improve the customer experience, while striving to do so in the most efficient ways possible.
About the Author
Dave Schaefer is the founder and Chief Executive Officer of Orion First Financial, LLC which was established in 2001 as a small ticket, commercial equipment lease servicer and advisor. Dave has over thirty years of experience in the commercial equipment finance industry, including senior management responsibility for treasury, operations, information technology, accounting and portfolio management.
CONTINGENT COLLECTIONS - BOWLED OVER AND FLOORED
Effective RecoverStarts with Strategic Discovery
Our story starts in Fallon, Nevada where highway 50 and 95 slice through each other’s proud American pavement. It begins with a bowling alley and an AWOL obligor. An obligor who has, in fact, managed to default on both his building note and, consequently, the bowling lanes within that building. Of primary concern to us are these lanes and their spherical counterparts.
You see, our client – a bank in San Francisco – financed the construction of 7 new lanes and a slew of multicolored, metallic bowling balls to roll down this freshly placed wood.
Now, there are a few facts we know about this bowling alley that are of particular interest:
- It has 9 bowling lanes, 7 of which were paid for by said client.
- The building is owned by a third party and he has foreclosed on the tenant.
- The owner of the building has taken over running the bowling alley because the lessee has skipped town.
The bank who financed the new lanes and bowling balls for nearly $55,000 knew they were in a pickle, so they reached out to a collection team to assist in recovery of the debt. The collection team returned some time later, empty-handed, unable to track down the obligor or any assets. Enter Orion First Financial.
This is how it all went down:
We first had to establish with the building owner that the lease agreement with the obligor included a landlord waiver and that the lanes were the property of our client. Next, we negotiated with the property owner to sell the lanes. Initially, he balked. But once he understood that we would have no other choice but to come in and physically remove the 7 lanes, rendering the bowling alley a profitless shell, he relented and we negotiated a sale price of $20,500. Talks with the property owner revealed that the obligor had owned and recently sold another property – a local minimart – suggesting that there were sufficient assets to cover the default deficiency.
While going this route is never fun – we knew it was time to get litigious. After securing legal counsel and arranging to file suit against the obligor, further investigation revealed the identity of the new owner of the property sold by the obligor. Once we identified and located the new owner, legal counsel was directed to arrange for garnishment of the note payment pertaining to the sale of the minimart property. Our client received payments through garnishment totaling $32,000. In all we collected enough to pay off the balance of the loan to the bank and cover all associated fees for recovery.
We recovered all $52,500 for our client.
No stone left unturned. Building rapport. Asking the right questions. Due diligence. At Orion, we understand that it takes comprehensive inquiry, creativity and grit when it comes to collecting for our clients. These are hallmarks of the Orion way of business. All at once old school – relying on a network of relationships forged over years in the equipment finance industry – and modern in our use of technology to track down those delinquent debts.
We know that effective recovery starts with strategic discovery. If you’re ready for that boost to your bottom line, then we'd like to extend to you a free 30-day evaluation of your non-performing assets – No Commitment, No Strings Attached.
Give us a call (888) 705-8778 to find out how our Contingent Collections services can recover your money. Check out our Contingent Collections page for more information.
Orion First Financial - Your Back Office Collection Specialists
ORION TO PROVIDE COMPREHENSIVE SERVICING OF PACIFIC CAPITAL CONTRACTS
GIG HARBOR, WASH. - Orion First Financial, LLC has begun servicing contracts for Pacific Capital Companies, a small ticket equipment finance company headquartered in Santa Monica, CA. Orion will provide credit underwriting, billing, cash management, front end collections and special assets services, as well as, sales/use and personal property tax services of equipment lease and loan contracts.
Pacific Capital Companies plans for aggressive growth in the small ticket equipment industry in 2013. Current plans for expansion include the hiring of approximately 50 loan originators with annual originations expected to be in the $80-$100 million range. Through the vetting process, Pacific Capital found Orion’s quality and scope of services best aligned with their particular needs.
“Pacific Cap Co is very pleased to partner with Orion First Financial for complete servicing of our small ticket portfolio. Their industry knowledge, proven ability to execute, and overall professionalism is exactly what we hoped to find in a servicer. With our aggressive 2013 ramp plan, we need a highly qualified partner who can sprint alongside the growth of the business with us,” said Charles Anderson, Managing Partner of Pacific Capital.
“We are thrilled to provide such a range of services for our friends at Pacific Capital. Our shared vision for sustained growth and commitment to impeccable service dovetail seamlessly. I’m very excited to share the news of Orion’s relationship with Pacific Capital. It’s a very promising start to the new year,” said Shannon Green, President of Orion First Financial.
Orion First Financial, located in Gig Harbor, WA, is an independent servicer for the equipment finance industry. Orion specializes in underwriting, lease servicing, special assets services and strategic advisory within the equipment finance industry. As a multifaceted and innovative equipment finance company, Orion can effectively engage with Leasing Companies, Equipment Dealers & Manufacturers, Banks and Financial Institutions. Orion’s skilled team, efficient technology platform and best practices approach, generate exceptional industry performance metrics that translate into better profits, less stress and enriched customer relationships for their clients.
ORION TO PROVIDE SERVICING TO ENDURANCE LENDING NETWORK CONTRACTS
GIG HARBOR, WASH. - Orion First Financial, LLC has begun servicing contracts for Endurance Lending Network, an exciting, forward-thinking web-based lending platform with offices in San Francisco and New York. Endurance utilizes a web-based lending platform that connects small businesses looking for capital with non-traditional lending sources. Orion is providing a turnkey, comprehensive loan and lease administration platform to accelerate Endurance’s growth. Services to be provided include contract documentation & UCC related services, invoicing, payment processing, customer service, collections and special asset services.
“Orion's service and support platform was a perfect fit for us here at Endurance. We look forward to working with Orion First Financial as we continue to connect more businesses with a new sub-set of investors,” said Sam Hodges, Co-Founder of Endurance Lending Network.
“We are thrilled to provide this range of services for Endurance Lending Network. Our shared vision for providing small businesses with viable lending resources and seeing sustained growth in this niche market makes our partnership all the more suitable and satisfying. I’m very excited to share the news of Orion’s relationship with Endurance Lending Network,” said Shannon Green, President of Orion First Financial.
Orion First Financial is a service provider leader in the small ticket equipment finance industry. Orion specializes in underwriting, lease servicing, special assets services and strategic advisory within the equipment finance industry. As a multifaceted and innovative equipment finance company, Orion can effectively engage with Leasing Companies, Equipment Dealers & Manufacturers, Banks and Financial Institutions. Orion’s skilled team, efficient technology platform and best practices approach, generate exceptional industry performance metrics that translate into better profits, less stress and enriched customer relationships for their clients.
Endurance Lending Network is a startup web-based lending platform that connects small businesses looking for $50-500K of debt capital with non-traditional lending sources such as accredited investors, family offices, wealth management platforms, and debt funds.