SunBridge Capital grows new commercial finance originations by 90% in 2006

Mission, Kan, January 17, 2007 – The commercial finance industry is dominated by a few large banks and financiers, such as Wells Fargo, US Bancorp and GE Commercial Finance. But at least one independent, SunBridge Capital, is redrawing the path for small companies to find aggressive growth in spite of competition from behemoths by incorporating analytics, technology and creative marketing.

SunBridge Capital’s new financing originations increased from $92.6 million in 2005 to $175.6 million in 2006. The 90% increase continues the overall trend started in 1997.

“To differentiate, compete and realize profitability, we knew we had to break the mold. This allowed us to scrap traditional thinking and build a business which, by serving the marketplace through innovation and service, would drive success,” said Adrian Weber, President and Chief Executive Officer of SunBridge Capital.

One of the first moves made by SunBridge Capital was to define the market niche in which they would compete. The owners’ backgrounds in commercial truck manufacturing pointed the company toward leasing commercial trucks, trailers and heavy equipment.

“The commercial equipment financing industry is filled with ‘A Credit’ lenders and ‘high-risk, cross-collateralizing’ lenders. This saturation at the polarities of the credit spectrum left a large, underserved segment in the middle, as well as very few lenders who serve a wide spectrum of credits,” said Weber. “By focusing our attention on ways to effectively finance the widest spectrum of credits, we mitigated the competition from the industry giants and well-entrenched smaller players.”

In order to make consistent, fast and profitable credit decisions as well as differentiate itself, SunBridge Capital built a proprietary credit model based on five years of empirical data. The outcome was fast service and a predictably performing portfolio. It took over two years to complete the credit model, but the wait was well worth it. Within months, the new transactions were showing the anticipated predictability and the benefits of speed and ease were delivered to the marketplace.

“By early 2005, we were financing commercial assets familiar to us and armed with a very accurate credit model. The results were we could make smart credit decisions, optimize pricing and easily remarket equipment in the event of a default,” said Weber.

The benefits of their now very unique product demanded a total rethinking of SunBridge Capital’s marketing strategy. The SunBridge Capital marketing team realized it was time for another set of zigs and zags in company strategy. The new credit model changed the nature of their product, so they changed their marketing. SunBridge Capital partnered with hundreds of independent product representatives – equipment finance brokers – who were accustomed to learning lenders’ credit and asset appetites. The credit model was perceived as a great benefit to the product representatives due to its speed, broad range of risk tolerance and the brevity of information needed for a credit decision. SunBridge Capital now reached customers by marketing through an indirect sales channel.

“It was a classic win-win. We were making better credit decisions with less effort and the broker channel recognized a competitive product to offer to their customers,” said Weber. “Our secret to success has always been finding ways to differentiate ourselves, instead of struggling to be a little bit better at what everyone else does. The credit model, our technological innovation, execution by our outstanding employees and support from the broker channel created open space for our company to run in.”

Those companies offering capital availability to SunBridge Capital, such as commercial paper facilities, traditional banks and alternative investors, welcomed the very predictable portfolio performance, said Weber. In return, many lenders increased the capital availability extended since the time the credit model was instituted.

Technology has been another source of differentiation for SunBridge Capital in a highly commoditized market. Support levels delivered through technology tools add value to the critical channel relationships. Internal and external tools allow SunBridge Capital to provide speed and convenience while generating the data to be an analytics-driven company.

A catalyst to the success of the company’s growth is the ease in today’s technology environment of in-house development of robust systems. Nearly all of the internal and external systems are developed internally and integrate with third-party data providers.

“Strong vision, smart marketing and today’s technology options and above all execution, signal the rise in opportunity for small companies to compete in almost any industry,” said Weber. “I am frequently asked, ‘What is the secret to the success of SunBridge Capital?’. My response is always, ‘unless you can offer the best product for the market you target, it’s time to change both.’ We are extremely fortunate to have the support from our broker network, capital market partners and of course our dedicated, diligent and customer-oriented employees.”

www.SunBridgeCapital.com

SunBridge Capital corporate information and performance at-a-glance

Company founded: 1997
Ownership: Private
Location: 6300 Nall Avenue, Mission, Kansas, 66202
Employees: 78 as of 12/31/2006
Corporate Web site: www.SunBridgeCapital.com

2005 Finance Originations: $92.6 million
2006 Finance Originations: $175.6 million

Current Finance Portfolio: $309 million as of 12/31/2006

Association memberships:

• Equipment Leasing and Finance Association
• National Association of Equipment Leasing Brokers
• United Association of Equipment Leasing
• Eastern Association of Equipment Lessors

• Among “25 Fastest Growing Companies” – Kansas City Business Journal, 2006
• Among “100 Fastest Growing Companies” – Ingram’s¸2006

• Adrian Weber, Owner, Chief Executive Officer
• Bob Mapes, Chief Financial Officer
• Chris Gregory, Director of Business Development

Contact:
Chris Gregory
Director of Business Development
SunBridge Capital
Phone: 913.279.3219
Email: cgregory@sunbridgecapital.com

Read More EAEL Member News...