GMAC Business Credit, a part of GMAC Financial Services, is entering the equipment financing arena with the creation of an Equipment Finance Division.

"As we see more and more consolidations of major finance and leasing companies, the time is right for a new and strong equipment finance company," said Jay Craig, president, GMAC Business Credit. "Our goal is to become a

leading financial resource in multiple facets of equipment finance and leasing."

Lee Palm, who came from Transamerica Equipment Financial Services, has been named president of the new division which will be headquartered in Atlanta.

"We selected Atlanta because the area has a substantial talent pool, a good economy and can be attractive if we should need to draw from an outside talent pool in the future," said Palm.

GMAC Business Credit has been part of the GMAC Commercial Finance Group since the late 1990s. It provides asset-based lending to middle-market

companies, including General Motors suppliers. GM is the parent company of GMAC.

Palm said the strong brand recognition of GMAC is invaluable in growing the multiple businesses of the Equipment Finance Division.

According to Palm, the initial thrust has been toward establishing a general equipment financing group that will be turnkey in makeup. Initiatives within GMAC Equipment Finance will include a business aircraft group under the

direction of Joe Dini, who was successful in orchestrating the emergence and growth of FINOVA's corporate aircraft finance group; and a buy-desk function under the direction of Greg Kavouras, who had spent many years at CIT and most recently with Wachovia.

Also in the planning stages are a capital markets group and a big-ticket division which will house financing activities for commercial aircraft, rail and marine.

Mike Reisner, recently from Associates Capital, was named senior vice president with responsibility for all aspects of risk management, procedures and operations. He also will play a major part in the rollout of the multiple equipment financing initiatives.

GMAC Financial Services earned $1.6 billion in 2000. GMAC Business Credit, based in Southfield, Mich., closed out 2000 with 54 completed transactions (more than $1 billion in commitments) and increased its loans

outstanding by 120 percent to $1.1 billion. Loans ranged from about $5 million to more than $250 million for a client base comprised of

manufacturers, distributors, retailers and service companies in the automotive, apparel, food services, furniture and steel industries.