What is Syndication?

Syndication is the sale of leases to a third party investor. The third party investor purchases the lease at a discount rate and takes ownership of the secured contract. The third party investor may assume billing and collecting of the remaining lease payments or Susquehanna Commercial Finance, Inc. may continue servicing the account for the investor. All Privileges and Obligations of the Lessor and the Lessee, as described in Susquehanna Commercial Finance, Inc. lease contract, will remain in force for the remainder of the lease term.

Why does Susquehanna Commercial Finance Syndicate Leases?

Syndication allows Susquehanna Commercial Finance to offer a more diverse blend of leasing products to our end users, vendors and leasing brokers. Since Susquehanna Commercial Finance is a bank owned, general Lessor, who primarily invests in A & B+ Credits, syndication allows us to remain competitive when customers request lease financing that falls outside the guidelines by which we manage our portfolio. Among the most common reasons we syndicate lease transactions are:
  • Requests for financing greater than Susquehanna Commercial Finance exposure limit
  • Requests by current customers who have reached Susquehanna Commercial Finance maximum credit limit 
  • Requests for leases outside our approved geographic areas 
  • Requests for unconventional Lease Structures
  • Requests from customers who fall below Susquehanna Commercial Finance, Inc. minimum credit requirements
  • To manage receivable concentrations in single industries

Portfolio Sales

Susquehanna Commercial Finance, Inc. periodically sells a block of leases to third party investors. One reason is to alleviate concentrations in a particular industry or equipment classification. At times Susquehanna Commercial Finance, Inc. may sell portions of portfolio when attractive interest rates provide for strong returns to our shareholders. Servicing of the Leases sold may be retained by Susquehanna Commercial Finance, Inc., assumed by the third party and serviced under the Susquehanna Bank name, or assumed by third party and billed under their name.

Portfolio Purchases

Susquehanna Commercial Finance, Inc. actively reviews portfolios of other leasing companies for receivables that are consistent with Susquehanna Commercial Finance, Inc. credit guidelines and provide a better diversity to our existing portfolio mix. Susquehanna Commercial Finance, Inc. purchases portfolios with or without recourse. Susquehanna Commercial Finance, Inc. will service purchased portfolios or permit the assigning Lessor to retain service of the portfolio if they meet Susquehanna Commercial Finance, Inc.’s minimum criteria.