Monthly Leasing Index
June 2006
- Total New Business Volume
- Aging of Receivables
- Average Losses
- Credit Approval Ratios
- Total Number of Employees
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The Equipment Leasing Association releases its monthly leasing index of equipment leasing and finance activity, the MLI-25, for the month of June. The MLI-25 provides metrics reflecting monthly commercial equipment lease and loan activity as reported by the twenty-five participating ELA member equipment finance companies. Overall volume for the period spiked 20% over the prior month's originations, totaling $7.2 billion for new commercial equipment leases and loans. Portfolio quality deteriorated slightly, however, with receivables over 90 days increasing to 1.0%. Charge-offs as a percentage of net lease receivables also increased to .59% from .39% in the prior month. June's credit approval ratios dropped very slightly from May, coming in at 78.7% compared with 79.3%. Total headcount rose, to 10,931, the sixth consecutive rise in employment for the MLI-25 companies. "The data continue to show a robust demand for new capital investment in the commercial sector, even in the face of a rising interest rate environment", commented ELA President Ken Bentsen. "A 20% monthly increase in new originations is a good sign that the business sector continues to see the need to invest in productive activities." Because the same companies participate in the survey each month, the MLI-25 provides a fairly reliable and consistent trend analysis of current industry activity. Results of each MLI-25 are posted on the ELA website and Equipment Leasing Today magazine. The ELA provides a variety of studies, reports, and market analyses covering the $220 billion equipment finance sector. To access this and other industry information, visit the ELA website at http://www.elfaonline.org/Ind/Research/ or contact Bill Choi, bchoi@elfaonline.org. |
Participants in the ELA MLI-25:
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Total New Business Volume (Leases and Loans)
Aging of Receivables:
| 2006 | ||||||
| Jan. | Feb. | Mar. | Apr. | May | June | |
| Less than 30 days | 98.1% | 97.8% | 98.0% | 98.0% | 98.0% | 98.0% |
| 31-60 days | 0.9% | 1.0% | 1.0% | 0.9% | 1.0% | 0.8% |
| 61-90 days | 0.3% | 0.4% | 0.3% | 0.3% | 0.3% | 0.4% |
| Over 90 days | 0.7% | 0.8% | 0.7% | 0.8% | 0.7% | 1.0% |
Average Losses (Charge-Offs as a % of Net Receivables)
Credit Approval Ratios (As % of All Decisions Submitted)
Total Number of Employees
