Jason Schumacher

First Vice President, Leumi Business Credit, a division of Bank Leumi USA

40 Under 40 Category: Underwriting

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Message from Jason Schumacher
Biography:

Jason is a first vice president and founding member of Leumi Business Credit, a division of Bank Leumi USA, with a focus on sustainably growing the credit portfolio. He began his career in commercial finance as an analyst for Keltic Financial Services in 2003 and holds a B.S. from Villanova University and an M.B.A. from Fordham University in finance.

Prior to Leumi Business Credit, Jason managed a portfolio of direct loan assets, workouts, and liquidations at Ares Commercial Finance as a vice president. He has also held previous roles at The Berkshire Bank, where he reported directly to the Office of the CEO on strategic matters and monitoring a broad range of assets, Laurus Capital Management, where he managed a portfolio of direct loan assets, and Morgan Stanley Businesscape, managing a portfolio of middle-market credits. Jason is a member of the Secured Finance Network and the Turnaround Management Association New York Chapters.

What is the best professional advice you have been given and how have you implemented it? 

In 2003, I received advice from Jack Reilly at Keltic Financial Services to “think of it as your money.”  If your profession is lending money, you have an obligation to make good investment choices on behalf of investors or depositors. Holding myself accountable for these decisions motivates me to be diligent and persistent towards the allocation of capital procedure. Every lender manages the borrower’s need for capital with the preservation of investor’s principal and a 100% risk-adverse approach leading to low-yielding investments. Poor returns and loss of principal are a disservice to the institution that entrusts us to make an investment decision. Responsible lending permits more candid conversations with borrowers about the needs of all stakeholders and the proper fit of those needs with the institution’s credit framework. The mindset of personal responsibility starts with the perspective of “it’s your money” and leads to better institutional decisions.

How have you managed to stay in touch with colleagues and clients during this time of working remotely?

I try to communicate with some of my clients at least once per week if things are stable, and with others daily to maintain clear communication. The borrowers’ businesses are constantly encountering new cash challenges. I have ongoing discussions about government lending programs, amendments, waivers, and opportunities. Conversations with colleagues happen daily. The touch point is either a phone call or via one of the many video-conferencing services colleagues and clients utilize. I am looking forward to returning to a live interaction, as it is difficult to build strong relationships with new contacts while working remotely.

How do you define a good leader?

I believe good leadership entails good communication, humility, and hard work. The workforce is filled with different experiences and perspectives. A one-size-fits-all approach is likely to lead to miscommunication. With a communication shortfall, you can only be effective if the audience changes to those receptive to the message. When a workforce must change to meet the communication style of its leader, you end up with a workforce that can miss outside cues because of a cultural groupthink. A good communicator allows different experiences and perspectives to flourish, increasing the likelihood of understanding change. If an industry is changing, a more dynamic workforce has a greater chance of adapting. A good leader should have the humility to know that good ideas come from all over an organization and is receptive to dissenting or differing opinions. Finally, a poor work ethic can lead to delays, demoralization, or even institutional failure. Hard work can make up for other shortfalls and is a trait largely in the individual’s control. While some fields require specialized intelligence, a good portion of corporate problems can be solved through persistence.

When interviewing newcomers to the industry, what do you say to pique their interest about why they should accept a position in this industry?

There is a pivotal opportunity to educate the “fence sitters” about a unique space in the lending business. Secured finance is a useful financing tool across strategy, institution and industry. A traditional college course spends little time explaining our product offering, and I believe there is an opportunity to recruit more young professionals. I try to share my own experiences from asset-based lending. An additional selling point is that the asset- based revolver has multiple corporate purposes including: funding working capital, acquisition financing, debtor-in-possession financing, bridge financing, and turnaround financing. Although we are generalists, newcomers to secured finance are surprised to hear about the large pool of industries we touch, from oil and gas, seafood, furniture, automotive – the list goes on. Most recruits I speak to are looking for work that is challenging, interesting and has a foreseeable relevance. Our industry can check all those boxes.

Disclaimer: The views expressed are solely those of the individual and not necessarily shared by the individual’s employer.