ELFA honors legal leasing expert

The Equipment Leasing and Finance Association (ELFA) has awarded Alan Mogol, principal at Ober, Kaler, Grimes & Shriver, the Edward A. Groobert award for legal excellence in recognition of his significant contributions to the equipment leasing and finance industry and the association’s legal committee, which serves as a member and staff resource on a wide range of national and international legal issues.

Mogol has been involved in the equipment finance industry for more than 40 years. He was an early pioneer of the leasing legal community and developed innovative approaches to a number of important legal issues.

Amongst his achievements is the creation of standard middle market lease documentation currently used by many banks and finance companies active in the industry. Mogol also developed standard syndication documentation accepted as the industry norm, including flexible master assignment agreements, participation agreements and motor vehicle titling trust documents. He popularized use of the motor vehicle titling trust to facilitate the syndication of titled vehicle financings.

Mogol has been an active member of the ELFA for more than 30 years, serving on a variety of committees and subcommittees. In addition, he has made numerous presentations and participated on numerous panels at the ELFA legal forum, an annual event for attorneys serving the equipment finance industry. He has also co-authored chapters in equipment finance legal treatises and has contributed legal articles to the association’s magazines.

The Edward A. Groobert award for legal excellence is named for ELFA’s former long-time secretary and general counsel, who was active in the legal affairs of the association from the mid-1960s until his retirement in 2010.

Leasing – the strategic benefits

ELFA has been sharing tips on leasing and financing as part of the 2016 National Small Business Week, which is at the beginning of May.

ELFA president and CEO Ralph Petta explained: “The $1 trillion equipment leasing and financing industry helps all types and sizes of commercial businesses acquire the equipment they need to conduct their business operations. For small businesses in particular, which may not have access to as many funding sources, equipment financing offers flexible, budget-friendly options that can help with cash flow and keep equipment up-to-date.”

ELFA shared the following steps that businesses can take to get started leasing or financing equipment to their strategic advantage:

1. Consider how you will be using the equipment – Perform a simple cost/benefit analysis by comparing the anticipated costs to the revenue you expect to generate from using the equipment.

2. Find an equipment finance partner who understands your business – It is also important for the company to understand your business’s tax and cash flow requirements and be able to set the residual rates (the value of leased equipment at the end of the lease term). Your equipment financier can serve as a valued consultant, providing additional benefits through lifecycle asset management solutions.

3. Calculate your total payments and costs -. In addition, find out if there are additional costs associated with the lease or finance transaction that may occur during the course of the agreement term, including late payment fees and other surcharges.

4. Understand the terms of your agreement -. Make sure you understand your company’s liability for the equipment you are leasing or financing

5. Close the deal

ELFA has a micro site with a range of tools lenders can use to explain the benefits of leasing at visit www.EquipmentFinanceAdvantage.org.