Equipment Leasing and Finance Association - Equiping Business for Success

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Monthly Leasing and Finance Index August 2006

Aug 1, 2006, 19:04 PM

The Equipment Leasing Association /1 (ELA) Monthly Leasing Index (MLI-25) of equipment leasing and finance activity for August releases today showing originations remain solid. The MLI-25 provides metrics reflecting monthly commercial equipment lease and loan activity as reported by the 25 participating ELA member equipment finance companies.

Overall volume for August increased slightly when compared to July originations. August business activity totaled $5.7 billion for new commercial equipment leases and loans. On the portfolio quality side, charge-offs increased slightly, inching up eight basis points to .41 percent.

Receivables over 90 days also increased slightly to 1.1 percent. August's credit approval ratios increased slightly to 79.0 percent when compared to July. Total headcount rose, to 10,732, the eighth consecutive rise in employment for the MLI-25 companies.

"The numbers suggest that the anticipated slowdown in capital investment as a result of rising market interest rates has yet to materialize," said Bill Verhelle, CEO of First American Equipment Finance. "The modest August increase in new lease and loan originations follows a twenty-percent increase last month."

The participant companies in the MLI-25 represent a broad cross section of the equipment finance sector including small ticket, middle market, large ticket, bank, captive and independent leasing and finance companies. Because the same companies participate in the survey each month, the MLI-25 provides a consistent trend analysis of current industry activity. Results of each MLI-25 are posted on the ELA website and Equipment Leasing Today magazine. Charts and graphs are available for reprint to the media.

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:

  • ADP Credit Corporation
  • Amsouth Leasing Corporation
  • Bank of America Leasing
  • Bank of the West
  • Canon Financial Services
  • Caterpillar Financial Services Corporation
  • CIT
  • De Lage Landen Financial Services
  • First American Equipment Finance
  • GreatAmerica Leasing Corporation
  • Hitachi Credit America
  • HP Financial Services
  • Irwin Financial
  • John Deere Credit Corporation
  • Key Equipment Finance
  • LaSalle National Leasing Corporation
  • Marlin Leasing Corporation
  • National City Commercial Corp.
  • RBS Asset Finance
  • Siemens Financial Services
  • US Bancorp Leasing & Financial
  • US Express Leasing
  • Verizon Capital Corp/Verizon Credit
  • Volvo Financial Services
  • Wells Fargo Equipment Finance

Total New Business Volume (Leases and Loans)

0806-newbusvol

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Aging of Receivables:

  2006
  Jan. Feb. Mar. Apr. May June July August
Less than 30 days 98.1% 97.8% 98.0% 98.0% 98.0% 98.0% 97.8% 97.6%
31-60 days 0.9% 1.0% 1.0% 0.9% 1.0% 0.8% 0.9% 1.0%
61-90 days 0.3% 0.4% 0.3% 0.3% 0.3% 0.4% 0.3% 0.4%
Over 90 days 0.7% 0.8% 0.7% 0.8% 0.7% 1.0% 0.9% 1.1%

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Annualized Average Loss (Charge-Offs as a % of Net Receivables)

Average Loss

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Credit Approval Ratios (As % of All Decisions Submitted)

Credit Approval Ratios

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Total Number of Employees

Total Number of Employees

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