Equipment Leasing and Finance Association - Equiping Business for Success

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Monthly Leasing and Finance Index 3rd Quarter 2002

Jun 1, 2002, 18:32 PM

Please Note:

ELA's name, address, web site and contact info have all changed since the information below was originally published. For additional information on this and other ELFA research materials, please contact Bill Choi at bchoi@elfaonline.org or 202.238.3413.

ELA recently released the results of its Performance Indicators Report (PIR) for the third quarter of 2002 (July-Sept)

The PIR tracks the performance of prominent leasing organizations in six key areas. Because the same companies were tracked and used in the analysis, the PIR provides fairly reliable trend analysis. Each illustration below reflects the data provided by those companies responding to that particular question. Typically, not every company polled responds to every question.

New business volume growth was about 7.8% since the third quarter 2001. Total net portfolio continues to grow with a 3.1% increase when compared to the 3Q 2001. The total number of employees remains stable at 0.84%. Credit approval ratios have increased 2.2% compared the 3Q 2001. Average losses remained stable when compared to the previous year.

One major area of concern is that the "receivables over 90 days" have doubled from 1.1% in 3rd qtr 2001 to 1.9% in 3rd qtr 2002. This increase could have serious implications for the leasing industry as credit quality shows continued deterioration.

This study is conducted quarterly by the ELA, which provides a variety of data, including customized market analyses, to ELA members and organizations involved in the $242 billion equipment leasing industry.

Participants in the 3rd Quarter 2002 PIR Report

  • ADP Credit Corporation
  • Amsouth Leasing Corporation
  • Caterpillar Financial Services Corporation
  • Computer Sales International, Inc.
  • Dana Credit Corporation
  • De Lage Landen Financial Services
  • GreatAmerica Leasing
  • Farm Credit Leasing Services Corporation
  • Fleet Capital Leasing
  • John Deere Credit Corporation
  • Hitachi Credit America Corporation
  • Key Equipment Finance
  • LaSalle National Leasing Corporation
  • U.S. Bancorp Leasing & Financial
  • Verizon Credit, Inc.
  • Wells Fargo Equipment Finance

Total Net Portfolio

pir3q02-totalnet

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Total New Business Volume

Total New

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Delinquencies

(as a percent of gross receivables)
  2001 2002
# Days 3Q 01 4Q 01 1Q 02 2Q 02 3Q 02
< 30 97.6% 97.5% 97.2% 97.6% 96.9%
31-60 0.9% 0.9% 1.0% 0.9% 0.8%
61-90 0.5% 0.6% 0.6% 0.5% 0.4%
> 90 1.0% 1.0% 1.2% 1.0% 1.9%
  100.0% 100.0% 100.0% 100.0% 100.0%

16 respondents

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Average Losses

Average Loss

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Credit Approved Ratio

Credit Approved

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Total Number of Employees

Total Number

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