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Participants in the ELFA MLFI-25:

  • Bank of America
  • Bank of the West
  • BB&T Bank
  • Canon Financial Services
  • Caterpillar Financial Services
  • 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
  • M&T Bank
  • Marlin Leasing
  • Merchants Capital
  • PNC Equipment Finance
  • RBS Asset Finance
  • Siemens Financial Services
  • Stearns Bank
  • Susquehanna Commercial Finance
  • US Bancorp Equipment Finance
  • Verizon Capital
  • 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 June was $7.3 billion, up 33 percent from volume of $5.5 billion in the same period in 2010. Compared with May volume, June volume increased by 30 percent. Year to date, new business volume is up 28.5 percent over last year.

Credit quality is mixed. Receivables over 30 days decreased 14 percent to 2.5 percent in June from 2.9 percent in May, and declined by 24 percent compared to the same period in 2010. Charge-offs increased 38 percent in June from the previous month, and decreased by 35 percent from the same period in 2010.

Credit standards eased in June as the credit approvals ratio increased to 79 percent from 76 percent the previous month. Sixth-three percent of participating organizations reported submitting more transactions for approval during the month, a decrease from 68 percent in May.

Finally, total headcount for equipment finance companies in June showed no significant change month to month and year over year. Supplemental data shows that the construction and trucking sectors and small and medium-sized enterprises continued to lead the underperforming sectors.

Separately, the Equipment Leasing & Finance Foundation's Monthly Confidence Index (MCI-EFI) for July is 56.2, up 6.8 percent from the June index of 52.6. For more detailed information on the MCI-EFI visit www.LeaseFoundation.org

ELFA President and CEO William G. Sutton, CAE, said: "Overall new business activity in the equipment finance sector continues to show steady improvement in 2011. We hope this positive trend will continue as we head into the second half of the year amid an economic recovery restrained by uncertainty.'

Crit DeMent, Chief Executive Officer, LEAF Commercial Capital, Inc, located in Philadelphia, PA, said, "LEAF is experiencing similar results that are in line with the statistics detailed in the June MLFI index.Ê We are receiving positive feedback from our equipment vendors that sales are beginning to trend upwards." He added, "The majority of these sales are still replacement volume, which is driven by companies now obtaining new equipment they have been holding back on acquiring during the recession.Ê The fulfillment of this pent-up demand is a positive indication that the economy is continuing to recover."Ê

 

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

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Aging of Receivables Over 30 Days:

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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