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Participants in the ELFA MLFI-25:

  • ADP Credit Corporation
  • Bancorp South Equipment Finance
  • Bank of America
  • Bank of the West
  • BB&T
  • Canon Financial Services
  • Caterpillar Financial Services Corporation
  • CIT
  • De Lage Landen Financial Services
  • Dell Financial Services
  • EverBank Commercial Finance
  • Fifth Third Bank
  • First American Equipment Finance
  • GreatAmerica
  • Hitachi Credit America
  • HP Financial Services
  • John Deere Financial
  • Key Equipment Finance
  • M&I Equipment Finance
  • Marlin Leasing Corporation
  • Merchants Capital
  • National City Commercial Corp.
  • RBS Asset Finance
  • Siemens Financial Services
  • Stearns Bank
  • Susquehanna Commercial Finance, Inc.
  • US Bancorp
  • Verizon Capital Corp
  • Volvo Financial Services
  • Wells Fargo Equipment Finance

The Equipment Leasing and Finance Association's (ELFA) Monthly Leasing and Finance Index (MLFI-25), which reports economic activity for the $521 billion equipment finance sector, showed overall new business volume for April was $5.1 billion, up 11 percent compared to the same period in 2010. Compared against March volume, April volume decreased by 18 percent.

Credit quality is improved. Receivables over 30 days decreased to 3.3 percent in April from 3.5 percent in March, and declined by nine percent compared to the same period in 2010. Charge-offs also decreased, from 1.3 percent in March to 0.8 percent in April, and showed improvement over the same period in 2010.

Credit standards remained steady as new application approvals increased slightly to 76 percent in April from a revised 75 percent approval rate in March. Forty-five percent of participating organizations reported submitting more transactions for approval during the month, down from 50 percent in March.

Finally, total headcount for equipment finance companies increased for the first time in six months, and was up one percent year-over-year. Supplemental data shows that the construction and trucking sectors continued to lead the underperforming sectors in April.

Separately, the Equipment Leasing & Finance Foundation's Monthly Confidence Index (MCI-EFI) for May is 63.2, down from the April index of 70.3, indicating a more measured outlook due to the uneven performance in certain sectors. For more detailed information on the MCI-EFI visit www.LeaseFoundation.org

ELFA President and CEO William G. Sutton, CAE, said: "All of April's business performance indicators appear to provide evidence that the equipment finance sector continues to gain momentum.├ŐRecent anecdotal information from ELFA members gathering in Washington, D.C., for a series of leadership meetings in mid-May supports the observation that new business activity is strengthening and credit quality improving."

"In line with the MLFI-25 results, there is clearly optimism in most commercial sectors as we move away from the economic pause," said Aylin Cankardes, President, Rockwell Financial Group, located in Centennial, Colo. "We are experiencing a steady pattern of business volume growth in both the renewable space and the manufacturing markets. Credit for capital investments is now more readily available and starting to be deployed. Elevated underwriting standards continue to drive the focus to stronger credits, but with more lending options than over the past couple of years."

The MLFI-25 is a time series that reflects two years of business activity for the 25 companies currently participating in the survey.

 

MLFI-25 New Business Volume
(Year Over Year Comparison)
New Business Volume

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Aging of Receivables:

AgingofRcv.png

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Average Losses (Charge-offs) as a % of net receivables
(Year Over Year Comparison)
Average Losses

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Credit Approval Ratios As % of all Decisions Submitted
(Year Over Year Comparison)
Credit Approval Ratios

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Total Number of Employees
(Year Over Year Comparison)
Total Number of Employees

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