Published Birmingham Business Journal May 28, 2004

City's CapitalPartners Leasing Launches A New Fleet Division
by Gilbert Nicholson / Staff

With a goal of expanding its fleet leasing activities, CapitalPartners Leasing has hired automotive veteran Mike Craft to expand the business through a new com¬pany division.

CPL Automotive will lease "anything with wheels on it," says company presi¬dent and co-owner Monte Smith.

That includes executive cars, light-and medium-duty trucks, service vans, trail¬ers, dump trucks and 18-wheelers.

Craft, 44, an Alexander City native who has owned a tire store, used car lot and wrecker business - and worked a stint at the Source One auto auction company was hired this month as director of the new fleet operations division, with a goal of generating $1 million in the next 12 months.

"We felt if we got the right person on board, like Mike, we could get deeper into our existing customer base," Smith says. "Mike is real personable and is very knowledgeable about the industry. He also has expertise buying vehicles."

"People do business with people they trust," Craft says. "Hopefully, I have built relationships - and Monte has and Larry (Byrd, vice president of business develop¬ment) has - that we can explore."

CapitalPartners was created five years ago by Marc Porter, owner of Porter Capital Corp., who remains a majority investor. Minor partners include Smith and Byrd.

The company leases and finances equipment to small and midsize businesses in the restaurant, construction, technology, office furniture and manufacturing industries.

For example, CapitalPartners leases computer numeric code lathes, bulldozers, lumber saws, phone systems for offices and churches, and computer software and hardware.

The company leased equipment valued at $14 million last year, and was named to the Birmingham Business Journal's 2003 FastTrack25 list as the 17th fastest -growing local company among those with less than $10 million in annual revenue.

Customers include Joey Toler Trucking, Atherotech Inc., Regional Nuclear Pharmaceutical and Smith Cos.

"Our bread and butter is not going to be huge companies," Smith says. "Typically, you have the GEs (General Electric) of the world and bank leasing companies trying to get those. There is a big under-market in the $250,000 to $500,000 range and down. They're considered small by some people's account, but great by mine."

He adds: "I don't want to just lease our customers their computers or equipment out in their shop. I want to lease the vehicles their employees drive."

Smith says fleet leasing frees up money for companies by removing the need for a large down payment and allows them to pay a set price for a steadily depreciating item that can later be exchanged for a new vehicle.