Todays Date: 9/3/2010

Pawnee Leasing News, Press Release and Equipment Leasing Article Archive

About Pawnee Leasing

Pawnee Leasing Corporation is a small-ticket equipment leasing company specializing in providing business equipment leases up to $30,000 for start-up and less traditional credit profiles. Founded in 1982, we originate all of our leases through an independent network of lease brokers and conduct business in all of the lower 48 states of the U.S. We are active members and leaders in several industry trade associations including the National Association of Equipment Leasing Brokers (NAELB) and the National Equipment Finance Association (NEFA).

July 22, 2010

Brian Schonfeld, CLP - Regional Marketing Manager

Corporate Communications

We have always heard the axiom "The Customer is Always Right", meaning of course one is taught that their business should be run with customer satisfaction in mind. We create our business model to focus company attention on communicating with the customer and making sure they feel like an important part of our business, and their input is valued.

How much attention though is given to your employees, the ones interacting with your customers and presenting your company? Do they feel like they are part of the company culture, or just observing it? Do you ever solicit their input, or just give them marching orders? At the end of the day, are you paying as much attention to your company's internal communications as external? If not, maybe you should. A study by the consulting firm Watson Wyatt concluded that "Effective employee communication is a leading indicator of financial performance" (Watson Wyatt & Company, "Connecting Organizational Communication to Financial Performance – 2007/2008 Communication ROI Study" http://www.watsonwyatt. com). Taking the time to invest a little time and energy focusing on internal communications with your staff can be well worth it.

The business environment has changed significantly since our parents' generation; especially the last several years dealing with the current economic recession we are in. Employees are working longer hours with more responsibility, and probably with far fewer raises or promotions than in years past. With the current high unemployment rate, it is only natural for management to take their employees for granted – knowing now is one of the easiest times in recent history to replace them. Employees who feel marginalized and that their input is being ignored are more likely to show up and just "earn a paycheck". Managers need to recognize the importance of communication and interaction with their employees. Employees who feel like they have a voice and are a valued member of the team are more likely see the company as an extension of themselves and treat their job accordingly. Knowing the company cares about them will lead them to care about their job and the work they are doing.

The first thing a manager or owner must do to evaluate the status of internal communications in their company is do a communications audit. After all, you can't fix a problem you don't know about. At a larger company, this might consist of hiring an outside consultant to come in and meet with employees to identify their problems or concerns. A smaller organization however can probably get away with posting a simple comment box in a public place. One of the most common criticisms that employers will find after their communication audit is that they don't encourage upward as well as downward communication. Employees feel like their opinion is not only never solicited, but ignored if ever offered. They have created the idea of a manager who just sits behind his or her desk and issues orders, one who does not really know or care about their employees.

One way to deal with this criticism is to avoid communicating solely by e-mail; which only perpetuates this stereotype. Instead, take the time to communicate face-to-face with your employees. Instead of just shooting off a quick e-mail, take a minute and swing by their desk to chat briefly with them. Make them feel like they are a valued part of the organization, and their input and suggestions are considered. You might be surprised by what they come up with, but even if not the effort will still yield benefits. Having your employees feeling as if they contributed will foster an increased sense of loyalty. As ancient Chinese philosopher Lao Tzu stated: The wicked leader is he who the people despise, the good leader is he who the people revere, the great leader is he who the people say, "We did it ourselves".

When taking time to meet with employees, don't just rely on your companies regularly scheduled meeting times (sales meeting, company lunches, etc) and just discuss business issues. Make the time to meet with your employees when there are no pressing issues – just get to know them personally. An employee who feels his boss is not just a manager but also a friend will almost always go out of their way to make sure they don't let their boss down. When meeting with employees to discuss internal communication issues, if possible hold individual or small meetings. Employees tend to feel more comfortable and open in smaller settings.

When formulating an internal communication plan, it is also important to keep the company grapevine in mind. Just like nature abhors a vacuum, employees detest not knowing what is going on. If you are not communicating with your employees and providing them with accurate information, then they are assuredly getting it from somebody else inside the company. And chances are the information they receive by the water cooler won't be entirely accurate.

The bottom line is that you, as the manager or owner of your company, need to make sure you are getting out from behind your desk and off your BlackberryTM to get know the people who are working for you. An employee who feels connected and valuable is a much greater asset to your company than one who is simply earning a paycheck.

July 1, 2010

Chesswood Rights Offering Over-Subscribed by 56%

TORONTO, July 1, 2010 – Chesswood Income Fund (the "Fund") (TSX:CHW.UN) announced today that its rights offering was more than 56% over-subscribed, so that it raised the maximum gross proceeds possible of $5.28 million. As a result, 1,320,799 Fund units are being issued at an exercise price of $4.00 per unit.

"We appreciate the tremendous support of our unitholders," said Barry Shafran, President and CEO. "Subscribing for more than the maximum amount possible reflects their confidence in Chesswood. It's also noteworthy that there was broad support for the offering from across our unitholder base."

Net proceeds from the offering will be used to support the growth of the Fund's Pawnee Leasing Corporation ("Pawnee") subsidiary, as well as for general corporate purposes.

As a result of issuances of Fund units under the rights offering and the exercise of previously granted options and restricted units, the Fund has 9,250,854 Fund units outstanding in addition to exchangeable shares (issued as part of the consideration to acquire Pawnee in 2006) entitling the holders to acquire 1,478,537 Fund units.

The Fund's transfer agent is in the process of distributing Fund units to participants in the rights offering, either directly or through their brokers.

About Chesswood Income Fund
Chesswood Income Fund is a financial services trust with operating businesses in both Canada and the U.S.

For more information visit www.ChesswoodFund.com.

May 10, 2010

Gary H. Souverein, President & COO
Pawnee Leasing Corporation 800-864-4266, ext. 222

Pawnee Leasing Corporation introduces B+ credit leasing product .

Fort Collins, CO, May 10, 2010 – Pawnee Leasing Corporation has introduced a competitive B+ Credit leasing product to all of its approved broker sources effective May 10, 2010. The new B+ product complements Pawnee Leasing's leadership position serving the third party channel in the Start-up and B Credit markets.

"As is our operating style, we have been methodically entering this space for several years with individual third party sources to affirm our underwriting and servicing processes. As we expected, our tenured risk management and collections model is ideally suited to accommodate and service these credit profiles." said Gary Souverein, Pawnee's President and COO.

Souverein adds, "In speaking with so many of our sources, the industry disruption has left this market severely underserved as traditional banks, commercial finance and "A" leasing companies have migrated upstream in credit. We believe there's significant opportunity to originate high quality credit at attractive risk-adjusted margins. Our brokers have voiced a high demand for this product and we are excited to add further value to these relationships."

Pawnee Leasing Corporation, providing lease financing in the lower 48 states since 1982, purchases small-ticket "Start-Up" and "B" Credit transactions exclusively from a national network of brokers/lessors. For more information please contact Gary H. Souverein, at 800-864-4266. www.pawneeleasing.com

Pawnee Leasing Corporation is a Chesswood Income Fund company traded on the Toronto Stock Exchange - TSX - CHW.UN - www.chesswoodfund.com

February 26, 2010

Paul Phillips, Regional Marketing Manager
Pawnee Leasing Corporation 800-864-4266, ext. 248

Two Out of Three Approvals Never Closed in 2009...

Just one year ago, I joined Pawnee after a three-year journey as an equipment leasing salesperson for a mid-size small-ticket lease broker. When I first started in this business, I had no leasing experience and was handed a phone book with the marching orders to start dialing for dollars. That indoctrination into lease sales forced me to learn how to maximize my customer development and commission generating time. In my new role today, I'm amazed at the frequency of contact I have with brokers who are very effective in gathering applications yet unwisely spend their precious resources processing transactions instead of educating prospects and closing lease transactions.

Exactly 67% of Pawnee's approvals never close. Is that an opportunity for all of us? You bet it is! It just requires a different sales approach.

These brokers spend time getting applicants approved instead of focusing on educating, pre-qualifying, and selling their lease applicants on their likely lease offering. Likewise, I often hear from brokers "I am vendor driven, I need to get an approval". I too solicited and received all my business from vendors but I found it equally important to inform and educate my vendors of my different programs. They in turn were able to set reasonable expectations upfront with lease applicants or they contacted me to guide them to what was the most likely leasing option for their sales prospect. This dialogue inevitably helped when the customer would call the vendor and complain about pricing, the vendor understood each program and its respective terms. Generally, preselling the customer and then informing the vendor of our conversation worked best for me. I felt, "What good is an approval that won't close for the vendor or for me?"

A Pawnee lease applicant is a unique type of transaction requiring a consultative sales approach. It's not like your typical "A" commodity-priced deal. The latter is oftentimes sold after an approval is obtained. Try that with Pawnee's terms and you will be presenting only sticker shock, making your sales opportunity mission impossible!

Think of a Pawnee transaction like your first phone call for a date.

Don't: When you call for your first time say,"Hi, I'm John with XYZ Leasing and I have you approved. Your payments would be X amount each month for 36 months. Would you like to go out with me?" Sure, there may be lessees that may have no other choice and that's good enough for them, just like that person who is just glad to get asked out will say yes. But the majority of quality lessees will require more finesse.

Do: In my days of "dating" many Pawnee lessees, I took a different approach: Your greatest chance for success will be you showing them, before you pop the question, the benefits of going out on a date, or using you for their lease.

This approach certainly doesn't guarantee success. It does guarantee that you will be spending more time prospecting and closing--the two activities I found to be the most lucrative as a leasing salesperson. I never made a penny on approvals that didn't close because of the most basic objections and neither will you. So remember, next time you have a "date" with a Pawnee applicant be sure they're prepared for not only your good looks but also the few warts you may have!

February 20, 2010

Gary H. Souverein, President & COO
Pawnee Leasing Corporation 800-864-4266, ext. 222

Pawnee Leasing Corporation makes new asset and industry opportunities available to broker/lessor community.

Pawnee Leasing Corporation (Pawnee) has made available a mini-ticket program for assets and industry classes that are considered less desirable by many funding sources. "This program affords our broker/lessor network new market penetration opportunities in asset and industry classes that generally receive less attention from traditional financing sources. These less competitive market spaces allow both Pawnee and our broker/lessor to command attractive, risk adjusted margins." said Gary Souverein, Pawnee's President and COO.

The program was introduced on January 1, 2010 and encompasses a specific array of asset and industry classes including well defined pricing and lease structure within the program for transactions up to $15,000. Broker/lessors should direct inquiries for program information to their Marketing representative at Pawnee.

Pawnee Leasing Corporation, providing lease financing in the lower 48 states since 1982, purchases small-ticket "Start-Up" and "B" Credit transactions exclusively from a national network of brokers/lessors. For more information please contact Gary H. Souverein, at 800-864-4266.

January 7, 2010

Gary H. Souverein, President & COO
Pawnee Leasing Corporation 800-864-4266, ext. 222

Pawnee Leasing Corporation announces the hiring of Wayne Woolley as Vice President and Credit Manager.

Pawnee Leasing Corporation (est. 1982), a small-ticket funding source specializing in start-up business and less traditional credits up to $30,000, announced the hiring of Wayne Woolley as Vice President and Credit Manager of Pawnee Leasing Corporation.

Woolley previously was with Chrysler Financial 10 years in various senior credit management capacities. Woolley replaces retiring Credit Manager, Jerry Reeves, who has served in his capacity since 1999. Pawnee's President added, "While we will miss Jerry's influence on our credit operations, we are excited about the new credit leadership and hands-on credit experience that Woolley brings to the organization."

Woolley states, "I'm looking forward to enhancing the tenured and successful credit formula that clearly exists at Pawnee as is evidenced by the company's continued profitability through this unprecedented credit cycle."

Pawnee Leasing Corporation, providing lease financing in the lower 48 states since 1982, purchases small-ticket "Start-Up" and "B" Credit lease transactions exclusively from a national network of brokers/lessors.

January 1, 2010 - An Update From Our President

Gary H. Souverein, President & COO

Another year has come to a close and what a year 2009 has been! For even the most weathered industry veterans, the past year has been like no other. Simply put, it has been the most challenging year any of us have ever experienced. Nevertheless, the confluence of challenges has created new opportunities for those who are weathering the continuing storm. While business equipment acquisition may feel idle, many, many lessees and vendors have been orphaned by their bank and leasing relationships. There may never be a more opportune time to start prospecting for new relationships! Now more than ever, brokers are using our services as a door opener in their prospecting. "Mr. Vendor, is your primary lease company handling your start-up and "B" credit customers?" Chances are very high today that the answer is "No" and this is your entry point to a future relationship. You might have to refine your sales skills as selling Start-Up and "B" credit terms requires a different approach than that commodity "A" deal. Opportunity!

We see tremendous opportunity in 2010 with our broker partners. In the New Year, we will be expanding our footprint in our niche markets but also expanding into complementary segments in a measured fashion. We've never been more confident in our future and we're proud to say that we continue to dedicate 100% of our resources to the broker community.

So what's new you ask?

1) The "You want it, you got it" program.
A host of restricted equipment types and industries will now be considered! This will be a special promotion through March 31, 2010 to help you earn new commissions!

2) No increase in buy rates.
Enclosed are 2010 buy rate schedules which mirror the 2009 edition.

3) Modest adjustments to our Broker Guidelines including additional equipment, industry & state restrictions.

Paul Phillips (East) and Brian Schonfeld (West) remain your primary daily contacts and we encourage discussing your current business focus with them on a regular basis as they will be able to offer broad insight on how we can maximize our opportunities together. Please use them to set up conference calls especially with your sales team to discuss how we can be a more active part of their sales efforts. Take advantage of their role as your interface to improve and expand our business relationship.

Thank you again for the business relationship that we enjoy with you, our business partner. We appreciate and do recognize the relationship between broker and funder and the integral part you play in our success. Let's make 2010 a success for all of us!

January 1, 2010 - You Asked For It... You Got It!

Effective January - December 2010

Due to the overwhelmingly positive response by our broker community, we have decided to continue this program through the remainder of the year. Keep your sales force motivated in 2010 with the following previously restricted industries and collateral! As always, feel free to contact your regional marketing manager with any questions.

Industries ($1,000 - $15,000)

Accountant / CPA
Audio / Visual
Established Franchises
(50 franchisees minimum) 		Janitorial/Cleaning
Power Washing
Carpet / Restoration
Tattoo & Body Piercing

 

Equipment ($1,000 - $15,000)

Air Purification
ATMs (No route operators)
Auto Paint/Dent Touch-up Systems
Blind Cleaning
Blood Analysis Equipment
Carpet/Restoration Cleaning
Climbing Walls
Concrete Curbing Equipment
Copiers
Duct Cleaning Equipment
Embroidery
Exhaust Hood Fans		 GPS Locating Equipment
Gym Flooring/Mats
HVAC Systems
Inflatables
Janitorial/Cleaning
Mobile Radios
Playground Equipment
Pressure Washers
Scaffolding
Signs
Skin Care
Smoke/Fire Detection/Suppression		 Spray/Bedliner Systems
Used Dry Cleaning
Used Fitness
Used Food/Beverage Service
Used Furniture
Used Laundry
Used Medical
Used Printing
Video/Arcade
Vending (No route operators)
Walk-in Coolers
 

Credit Criteria:

*Minimum One Year Time In Business Required
*3 Payment Security Deposit Required (Use 2 Payment Factor)
*48 Month Maximum Term
*Please Use Standard "B" and Start-Up Rate Schedules

If you would like to download this information in a printable PDF format, please click on the image to the right.

Adobe Reader is required to view PDF files.

You can download the free Adobe Reader by Clicking Here.

December, 2009

Gary H. Souverein, President & COO
Pawnee Leasing Corporation  800-864-4266, ext. 222

Dear Industry Friends,

If you're reading this, give yourself a pat on the back, you're a survivor! There's no question that many years from now we'll marvel about this past year and its impact on our business and the industry. We experienced mere industry cycles in the past, 2009 was a complete resetting of our industry! It has been a ravaging year on our broker customers who have had to deal with re-sizing their organizations, losing funding sources, adjusting seemingly weekly to their funding partners changing parameters, severe contraction of business equipment purchasing and overreaching uncertainty among their vendor and lessee clients. One would be challenged to script a more difficult year.

The unfortunate truth however, as we all know, is that 2009 has been a cleansing year in the equipment leasing industry. Lessees, vendors, brokers and funders with weak or unsustainable business models did not survive. On the funding side, inexperienced and irrational funding sources either retreated or are out of business. On the broker side, those brokers who more carefully aligned themselves with better rooted funders have had a better chance to weather the storm; their sales force was already accustomed to today's reality and they had built a relationship with stable funders vs. partnering with funders with the lowest price or easiest process. Relationships are critical in a time of scarce resources. Likewise, there will be greater recognition of those companies that had a long term commitment to the indirect channel. In the future, new entrants with lower prices and easier processes might not be seen, this time, as such an attractive business partner.

What's ahead? We expect portfolio's, including ours, to remain under stress. We also think that equipment demand will be muted as small businesses continue to grapple with political and economic uncertainty and weakness well into 2010.

The good news however is that there might be a smaller pie, fewer are taking slices of the pie. There's never been a better time to establish customer relationships, with lessees and vendors. There are many, many orphaned lessees and vendors; lessees have bank relationships that aren't lending and vendors have been abandoned by their primary leasing source. While these parties might not have business for you today, it's a great time to set the table with these new relationships as they are poised to do business in the not so distant future.

For Pawnee Leasing, we've never been more confident about our future. We expect to look back on 2009 as a year of market transition and the springboard towards more robust growth and broader, more significant new product offerings to the broker community in 2010.

Finally, we wish Jerry Reeves a prosperous and healthy retirement at the end of 2009. After a successful 42 year career in commercial finance, banking and the past 11 years with Pawnee, his deep experience, vision, engaging stories and uplifting personality will be missed. We welcome in his place, Wayne Woolley, who brings a fresh yet experienced, hand-on credit perspective to our operations team.

We would like to take this opportunity to thank you for another successful year and wish you and yours the best this Holiday Season. We look forward to continuing to enhance and strengthen our relationship in the New Year.

Happy Holidays from Pawnee Leasing!

November 3, 2009

Gary H. Souverein, President & COO
Pawnee Leasing Corporation  800-864-4266, ext. 222

Pawnee Leasing Corporation announces attendance and exhibition at National Equipment Finance Association Super Regional EXPO

Fort Collins, CO, November 3, 2009 - Pawnee Leasing Corporation (Pawnee) announced that it will be attending as an exhibiting funding source at the National Equipment Finance Association (NEFA) in Teaneck, NJ on November 9, 2009.

"We are looking forward to attending and exhibiting at NEFA's first east coast event since the merger of EAEL and UAEL leasing associations. We have many customers in the tri-state area always enjoy the opportunity to network with a high concentration of our customers in this one-day event. Since there has been so much disruption to the funding source landscape in the past 12 months, it is important that those remaining support both our industry association but also lend visible support to our broker/lessor customers. Pawnee Leasing Corporation is still very much in the game and growing our market footprint in the start-up and "B" credit markets." said Gary Souverein, Pawnee's President and COO.

Pawnee Leasing Corporation will be exhibiting its services as well as participating as a panelist in the afternoon "Funding Town Hall" session. Both Gary Souverein and Eastern Regional Marketing Manager, Paul Phillips will be attending the event.

Pawnee Leasing Corporation, providing lease financing in the lower 48 states since 1982, purchases small-ticket "Start-Up" and "B" Credit transactions exclusively from a national network of brokers/lessors. For more information please contact Gary H. Souverein, at 800-864-4266.

November 3, 2009

Gary H. Souverein, President & COO
Pawnee Leasing Corporation  800-864-4266, ext. 222

Pawnee Leasing Corporation announces attendance & exhibition at National Association of Equipment Leasing Brokers Western Regional Meeting

Fort Collins, CO, November 3, 2009 - Pawnee Leasing Corporation (Pawnee) announced that it will be attending as an exhibiting funding source at the National Association of Equipment Leasing Brokers Western Regional Meeting in Costa Mesa, CA on November 6-7, 2009.

"We have exhibited and attended at this annual event for many years and always find it to be exceptionally valuable to both be present and to network with many of our clients in this geographic area. Given all of the funding source changes and exits from our market space it is also a nice opportunity to reinforce Pawnee Leasing Corporation's constant support of the Association and our customer network. We are still very much in the game and growing our market footprint in the start-up and "B" credit markets." said Gary Souverein, Pawnee's President and COO.

Pawnee Leasing Corporation will be exhibiting its services as well as participating as a panelist in one of the workshops, "Ways to Become a Top Broker with Your Funding Sources". Both Gary Souverein and Western Regional Marketing Manager, Brian Schonfeld will be attending the event.

Pawnee Leasing Corporation, providing lease financing in the lower 48 states since 1982, purchases small-ticket "Start-Up" and "B" Credit transactions exclusively from a national network of brokers/lessors. For more information please contact Gary H. Souverein, at 800-864-4266.

Fall 2009 - Increase Your Closing Ratios with Pawnee Leasing!

Brian Schonfeld, CLP - Regional Marketing Manager

I 'm sure a lot of you dislike losing money. When you don't close an open Pawnee approval, that is exactly what you are doing. We all know it is more difficult to close a Pawnee deal than your typical "A" deal. We charge higher rates because our risk is higher; that's basic economics. And while there is no such thing as a 100% close rate, if you take the following steps I can almost guarantee you'll see an increase in your Pawnee closing ratio.

1. Know Your Deal Why exactly are you sending your transaction to Pawnee Leasing?
Does your lessee have solid credit, but happen to be starting a new business? Do they have good credit and several years in business, but looking to finance unusual equipment? Or are they a tenured business with credit challenges? Once you know the answers to these questions you'll have a pretty good idea what funding source will buy your transaction, and what rate you will be passing along to your customer. You can't set realistic expectations for your customer without first knowing what you're going to be selling to your funding source. Which brings me to step two:

2. Pre-Close, Pre-Close, Pre-Close
Let's face it, we've all been there. After a preliminary discussion with the lessee you think you have a great "A" deal, only to find out once you have received the application and done a little work that you're now looking at a Pawnee approval. What do you do? Do you just send the documents out to the customer and hope they don't notice the old "Pawnee Bump"? If you do, chances are you're either going to have a mad customer, or an upset funding source after the lessee calls in after their first payment saying they've been cheated by the broker. Pre-closing is the natural progression of step number one (know your deal). Once you realize your deal's parameters it is time to have a detailed conversation with lessee about the requirements of their lease. Items that should be covered include the term of the lease, monthly payment, purchase option, any fees associated with the lease, insurance requirements, personal guaranty of all owners, interim rent, and collection of payment via ACH. However, as we all know, sometimes what we tell our potential lessee goes in one ear and out the other once they hear those magic words "you've been approved", which brings me to step three:

3. The Commitment Agreement
The commitment agreement is a powerful tool in making sure your client knows exactly what they are committing to, and will therefore be less likely to stop returning your calls once they've received their documents! A commitment agreement should include all of the items we covered in step two; payment, term, fees, PG, ACH, purchase option, etc. Many brokers also collect an advance payment equal to the security deposit required with the caveat that if the transaction is not approved the funds will be returned in full; however if the lessee backs out of the transaction of their own accord, the security deposit is kept as income earned. It is also important to note that signed lease proposals with commitment checks are strong motivators to approve the requested structure, as it demonstrates this deal has not just been thrown against the wall to see if it sticks. Will every lessee sign your commitment agreement? No, but those who don't probably aren't likely to sign the final lease documents either. A good approach for hesitant lessee's is to equate the commitment agreement to a good faith estimate for your customer - most of them will be familiar with this document. Feel free to use and modify the copy of our commitment agreement available on our training CD and website (please contact your regional marketing manager if you need a copy).

4. Send us a Complete Package Nobody likes to keep calling their lessee again and again asking for different pieces of information. Each time you ask for additional information you're increasing your chance (however slightly) of your customer re-thinking their obligation and possibly backing out of the deal. So before you send your documentation package to Pawnee make sure you included all the information we'll need. Are all the documents signed in the correct place? Does the lessee's signature match his or her driver's license? Is the driver's license current? Do you have proof of insurance? Have you already submitted bank statements / or bank rating? Has your vendor and equipment been approved? If your vendor needs prefunding do you have a pre-installation agreement signed? By addressing these requirements in advance, the process will be smoother and easier for everybody involved. By using the above steps will you close every single deal you send to Pawnee? No. However, if you follow the above steps on every transaction you will see your closing ratios steadily increase, which means your business is running more efficiently and more profitably. And if you are not following these steps, what do you have to lose by trying?

Are the title and registration fees included in the lease?
No, the lessee will be responsible for paying the title and registration fees separate from the lease.

How long does it take to receive the new registration and tags?
Depending on the state requirements and how long it takes to gather the appropriate documentation, it could take 2-6 weeks.

How can I contact the title department at Pawnee Leasing?
We can be reached by email at title@pawneeleasing.com or simply pick up the phone and call Deirdre or Nicole at 800-864-4266 We are here to help!

October 13, 2009

Gary H. Souverein, President & COO
Pawnee Leasing Corporation  800-864-4266, ext. 222

Pawnee Leasing Corporation announces transition to DOLLAR$ lease operating system provided by SFFA, Inc.

Fort Collins, CO, October 13, 2009 - Pawnee Leasing Corporation (Pawnee) announced that it recently replaced its operating system to the tenured DOLLAR$ lease operating system provided by SFFA, Inc. (SFFA), of Lakewood, CO.

"We are both confident and excited to align ourselves with SFFA, perhaps one of the most experienced and specialized lease operating system providers in our industry", said Gary Souverein, Pawnee's President and COO. "The DOLLAR$ lease operating system provides us with flexibilities and customizations that support our unique underwriting niche to Start-Up and "B" credit lease applicants. It also enhances our disciplined processes and will support a more web-efficient interface with our broker/lessor customers in the coming months as we continue our installation".

"Pawnee is a unique lease operation and our distinct advantage of not taking a "one size fits all" approach to their business allows us to be additive to their operations and customers. With over 25 years of service to the leasing industry we also especially enjoy partnering with Pawnee's experienced employee team." stated Dave Fern, SFFA's President.

Pawnee Leasing Corporation, providing lease financing in the lower 48 states since 1982, purchases small-ticket "Start-Up" and "B" Credit transactions exclusively from a national network of brokers/lessors. For more information please contact Gary H. Souverein, at 800-864-4266.

Summer 2009 - How is Pawnee doing?

Gary Souverein - President/COO

While it's been challenging, we're still going strong!
This is a question we get on a daily basis from our broker customers. It's obviously a genuine concern, as so many funding sources have been crippled in this credit cycle. For those who have been working with us over the past four years, my response has been simple: it's been challenging. Although the challenges continue, our perspective today is more confident and cautiously upbeat.

Cycle for Pawnee started back in 2005
For us, the challenges began back in 2005 when we saw the onset and then the deepening of an irrational credit cycle in the small-ticket leasing industry. Initially, ours was a competitive cycle... the irrational credit cycle seeds were being sowed. New funders were entering our market space and traditional funders were drifting into Pawnee's market to capture volume they were unable to attain in their core markets. Numerous companies, new and old alike, were doing start-ups at substantially lower than 1/2 our rates, taking on larger unit size, and in many cases taking on greater credit risk, impairing our origination volume.

Losing market share & contracting our business
When your business starts losing market share it's natural to have some doubts. Were we no longer competitive? Had the new competition figured out a better way to do our business? Would the traditional funding sources do our business as a loss leader? We asked and examined these questions on a seemingly daily asis and each time we arrived at the same conclusion: our competition was mispricing risk, and we must not follow our competition. Only time would correct their irrational business behaviors. Purposefully contracting our business was a counterintuitive decision. Our course during 2007 and most of 2008 was to more carefully originate quality credit, contracting our portfolio and reducing our overheads. To continue to grow was to misprice risk, an approach that was not, in our opinion, in the best longterm interests of Pawnee and our customers.

We benefitted by recognizing credit deterioration earlier than many
Because our portfolio was primarily comprised of start-ups, we saw weaker, less-established business enterprises begin to show stress in the back half of 2006. Rising delinquency trends in our portfolio, combined with the early stages of the housing correction, were early signals that improving portfolio quality needed to be our focus. We spent the next two years enhancing our credit profiles and eliminating industry and asset classes that were showing signs of difficulty or those we expected to be challenged in a down economic cycle. While we were retreating, many of our competitors were continuing or even accelerating their aggressive behaviors.

Correction in the industry
2008 marked a terrible year for the small-ticket broker/funder community. The recession, which was initiated by the credit crisis, had a sobering impact on our broker partners and funding peers. With almost no exceptions, our brokers were contracting their business and business flow slumped. This confluence was coupled with the retreat, departure, or demise of numerous funding sources. In the fall of 2008, in a matter of weeks every funder had made monumental changes to their credit parameters, and an unfortunate few paid the ultimate price for their unsustainable business models and went out of business. Today, the environment has stabilized somewhat, yet the effects of 2008 continue to have a significant impact on many of our broker customers.

Today and the future... growth, confidence, and cautious optimism
Today we find ourselves as wedid coming out of the 1999-2000 leasing industry cycle: as one of the few stable funding sources still solely dedicated to the broker/lessor community and our unique underwriting niche. We are growing again, albeit carefully, and anticipate taking back the market share in 2009 and 2010 that we gave up over the past two years. While portfolio performance continues to be challenging, our business model was intended to perform through down cycles -- and it has. It's been reassuring to hear from so many of our customers that, while we've made changes like all funders, Pawnee has been the most stable, reliable, and predictable funding source through this cycle.

Why you should feel confident in Pawnee
We are the central concern of our parent company, Chesswood Income Fund ("CHW"), a public Canadian income trust. CHW's board has provided unwavering support to our business and our decisions through this cycle. CHW's board didn't blink when we delivered the message that Pawnee's best strategic course was to contract; this illustrates their confidence in Pawnee at a time that every other player in our industry was rapidly growing. Likewise, we are fortunate to have a strong, stable, and premier bank partner in JPMorgan Chase NA. Finally, our employee, management, and board teams are experts in a very unique market. We have built a proven business model that provides the broker community with a market differentiating product to help you win more sales, vendor, and lessee relationships. We're confident in our future, even in these uncertain economic times and look forward to investing further in our relationship with you.

May 11, 2006

Gary H. Souverein, President & COO
Pawnee Leasing Corporation  800-864-4266, ext. 222

Pawnee Leasing Corporation announces completion of Acquisition and Initial Public Offering by Chesswood Income Fund

Fort Collins, CO, May 11, 2006 - Pawnee Leasing Corporation (Pawnee) will operate as a U.S. subsidiary of Chesswood Income Fund (Chesswood) following the successful closing of an Initial Public Offering of Chesswood, and concurrent conversion of cars4U Ltd into Chesswood, effective May 10, 2006.

"Chesswood provides Pawnee with access to the public markets, a significant opportunity that will allow us to continue growth in our core business and seek accretive opportunities that leverage our disciplined operations", said Gary Souverein, Pawnee's President and COO. "This will be a transparent event for our broker/lessor customers as our current management and employee team continue to enhance our leadership in the small-ticket start-up and "B" credit markets."

"Pawnee's excellent management team, years of consistent performance and commitment to future expansion were key elements in the successful Initial Public Offering" stated Barry Shafran, Chesswood's President and CEO.

Chesswood issued 5,778,193 trust units at C$10.00 per unit, for gross proceeds of C$57,781,930. The offering was underwritten by a syndicate of underwriters led by TD Securities Inc. and Canaccord Capital Corporation and including Blackmont Capital Inc., Wellington West Capital Markets Inc., Desjardins Securities Inc. and Genuity Capital Markets G.P. Units of Chesswood will trade on the Toronto Stock Exchange under symbol CHW.UN.

Pawnee Leasing Corporation, providing lease financing in the lower 48 states since 1982, purchases small-ticket "Start-Up" and "B" Credit transactions exclusively from a national network of brokers/lessors. For more information please contact Gary Souverein, at 800-864-4266.

June 23, 2005

Scott Woodring, Vice President of Sales & Marketing
Pawnee Leasing Corporation  800-864-4266

Personnel

Pawnee Leasing Corporation (est. 1982), a small-ticket funding source specializing in start-up business and less traditional credits up to $30,000, announced the promotion of Gary H. Souverein to President and COO of Pawnee Leasing Corporation. Souverein served as Executive Vice President of the company previously and has served in various roles for the company since 1993. After 6 years as acting President, Samuel L. Leeper will serve as CEO. States Souverein, "I'm looking forward to building upon the successful business model Sam has so greatly enhanced during his operational leadership of the company. I'm confident about Pawnee's future as we have a great management group, employee team and independent broker network that will continue our strong history of results."

Nationwide you can contact Pawnee Leasing Corporation at (800) 864-4266 or by e-mail arrow@pawneeleasing.com. Member NAELB, UAEL & EAEL.

April 29, 2005

Gary H. Souverein, Executive Vice President
Pawnee Leasing Corporation  800-864-4266, ext. 222

Pawnee Leasing Corporation announces the closing of a $57,500,000 multi-year revolving credit facility with JPMorgan Chase Bank, N.A. Gary Souverein, Executive Vice President, stated, "As our industry continues to be closely scrutinized by the credit markets, especially in recent years, we are pleased with the very positive reception afforded Pawnee Leasing within the lending community. It is a credit to our business model, dedicated employee team and important broker/lessor origination network." Ronald Schneider, Northern Regional President, stated, "This facility builds upon the long relationship Bank One has enjoyed with Pawnee Leasing and we're pleased to be able to continue supporting this highly focused and entrepreneurial firm."

Pawnee Leasing Corporation, providing lease financing in the lower 48 states since 1982, purchases small-ticket "Start-Up" and "B" Credit transactions exclusively from a national network of brokers/lessors. For more information please contact Gary Souverein, Executive Vice President or Scott Woodring, Vice-President, Marketing at 800-864-4266.

July 23, 2002

Gary H. Souverein, Vice President/Marketing
Pawnee Leasing Corporation  800-864-4266, ext. 222

Pawnee Leasing Corporation announces on-line sales training on its web site (www.PawneeLeasing.com) to assist their brokers/lessors in closing more business. States, Vice President, Gary Souverein, "So many of our brokers are small businesses and sales training unfortunately does not receive top priority in the running of a brokers business. We wanted to offer a condensed, high quality presentation that could be accessed by any lease salesperson. No longer does a leasing salesperson need to attend a costly industry conference to get the same focused industry specific training."

The 35 minute audio presentation is narrated by Gerry Egan, current NAELB president and very popular speaker at leasing industry conferences. Souverein adds, "Gerry's themes are not old school selling, they are practical, common sense approaches to small-ticket leasing and highly customer oriented. What we like about Gerry's approach is that it encourages understanding the customer vs. allowing the vendor to control the lease sales process. In Pawnee's niche of business, start-up and "B" leasing, discussing the specifics of a potential lease approval is critical to closing a Pawnee lease."

Pawnee Leasing Corporation, providing lease financing in the lower 48 states since 1982, purchases small-ticket start-up and "B" transactions exclusively from its national network of lease brokers. For more information please contact Gary H. Souverein, Vice President/Marketing at 800-864-4266 ext. 222 or by e-mail gary@pawneeleasing.com.