Equipment Leasing and Finance Association - Equiping Business for Success

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Monthly Leasing and Finance Index July 2006

Jul 1, 2006, 19:07 PM

The Equipment Leasing Association releases its monthly index of equipment leasing and finance activity, the MLI-25, for July. 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 declined when compared to June originations, which spiked to their highest levels of the year. July business activity totaled $5.7 billion for new commercial equipment leases and loans.

Portfolio quality strengthened, however, with charge-offs as a percentage of net lease receivables at their lowest levels of the year, .33%, down from .59% in the prior month. Receivables over 90 days remained at 1.0%. July's credit approval ratios remained relatively flat when compared to June. Total headcount rose, to 11,028 the seventh consecutive rise in employment for the MLI-25 companies.

"Leasing and finance companies enjoyed strong performance in July, particularly with respect to credit quality", said ELA President Ken Bentsen. He added, "The numbers seem to suggest that equipment demand is solid, as are the balance sheets of businesses acquiring this equipment".

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:

  • ADP Credit Corp.
  • Amsouth Leasing Corp.
  • Bank of America Leasing
  • Bank of the West
  • Canon Financial Services
  • Caterpillar Financial Services
  • CIT
  • De Lage Landen
  • First American Equipment Finance
  • GreatAmerica Leasing Corporation
  • Hitachi Credit America
  • HP Financial Services
  • Irwin Financial
  • John Deere Credit Corp.
  • Key Equipment Finance
  • LaSalle National Leasing Corp.
  • Marlin Leasing
  • 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)

0706-newbusvol

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Aging of Receivables:

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

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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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