Equipment Leasing Plan Could Make Lessees Losers

The FASB still undecided.  Under the standard setters' new proposal, companies that lease equipment could see their profits shrink in the early years of a contract, experts say.  

Equipment Leasing Plan Could Make Lessees Losers

East Coast Coal Fired Power Provider Partners with Mazuma Capital in Funding a Fly-Ash Conditioning System

DRAPER, UTAH July 2012–Mazuma Capital, a leading national direct lender, today announced it has funded $1.3M for a large East coast power provider.

The power provider sought a knowledgeable funding source with the ability to provide a solution to a complicated transaction. In order to comply with state environmental standards the company needed to condition their waste into coal fly-ash before depositing waste in state landfills.

The company was set up as a multi-layered organization with disparate corporate entities having varying degrees of ownership.  Due to this structure and the difficulties it posed, the incumbent bank for the power provider passed on providing financing for this equipment, in spite of the fact that the company has excellent credit. The additional challenge was financing almost 50% of “soft costs”, to include labor and installation along with a blanket UCC filing that would not subordinate.

After navigating the review of several of the company’s opaque organizational charts, the risk factors, and equipment, Mazuma agreed to fund this transaction.

“This power producer had a very unique set of complications that we were able to work through. Our team was innovative and methodical in our approach to the deal, which ultimately provided the terms in the manner the company needed. It is transactions of this nature that really spotlight the unique funding abilities Mazuma has within the industry”, said Jared Belnap, CEO and President at Mazuma Capital.

About Mazuma: Mazuma Capital is committed to our client’s success. Our unique capabilities and innovative product offerings provide solutions accelerating financial growth. Servicing both rising companies and established businesses, Mazuma continues to secure its position as the middle-market industry leader. We build long-term relationships by delivering on our commitments. Mazuma co-authored the Utah Best Practices Alliance. Mazuma Capital subscribes to the ELFA Code of Fair Business Practices and NAELB code of ethics.

Media Contact:

Julie Fuchs

801-816-0800 Ext. X291jfuchs@mazumacapital.com

IT Spending On The Rise

Fueled by an accelerating move to cloud computing, and by a boom in associated telecommunications services, worldwide information technology spending is increasing somewhat faster than expected, according to industry analysts at Gartner.

Over all, people will spend $3.6 trillion on information technology in 2012, the research firm said. This represents a 3 percent increase from 2011, when $3.5 trillion was spent, Gartner said, and is up from the 2.5 percent increase projected three months ago.

The increase, while modest, is notable because it is happening in the face of a financial crisis in Europe, slow growth in the United States, and a slowdown in China’s economic growth.

Spending on public cloud services is expected to increase 20 percent, to $109 billion, from $91 billion in 2011. By 2016, Gartner said, this expenditure could nearly double, to $207 billion.

That would still be a relatively small portion of the total spending, though it tends to represent considerable computing power and potentially more efficient I.T. systems.