Equipment Leasing and Finance Association - Equiping Business for Success

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Monthly Leasing and Finance Index July 2013

Jul 1, 2013, 16:04 PM

Participants in the ELFA MLFI-25:

  • ADP Credit
  • BancorpSouth Equipment Finance
  • Bank of America
  • Bank of the West
  • BB&T Bank
  • BMO Harris Equipment Finance
  • Canon Financial Services
  • Caterpillar Financial Services
  • CIT
  • De Lage Landen Financial Services
  • Dell Financial Services
  • Direct Capital Corporation
  • EverBank Commercial Finance
  • Fifth Third Equipment Finance
  • First American Equipment Finance, a City National Bank Company
  • GreatAmerica Financial Services
  • Hitachi Credit America
  • HP Financial Services
  • Huntington Equipment Finance
  • John Deere Financial
  • Key Equipment Finance
  • LEAF Commercial Capital Inc.
  • M&T Bank
  • Marlin Leasing
  • Merchants Capital
  • PNC Equipment Finance
  • RBS Asset Finance
  • SG Equipment Finance
  • Siemens Financial Services
  • Stearns Bank
  • Suntrust
  • Susquehanna Commercial Finance
  • US Bancorp Equipment Finance
  • Verizon Capital
  • Volvo Financial Services
  • Wells Fargo Equipment Finance

The Equipment Leasing and Finance Association's (ELFA) (MLFI-25), which reports economic activity from 25 companies representing a cross section of the $725 billion equipment finance sector, showed their overall new business volume for July was $7.2 billion, up 9 percent compared to volume in July 2012. Month-over-month, new business volume was down 16 percent from June. Year to date, cumulative new business volume increased 10 percent compared to 2012.

Receivables over 30 days were at 1.5 percent in July, up slightly from the historic low of 1.4 percent in June. Delinquencies declined from 2.2 percent in the same period in 2012. Charge-offs were unchanged for the past five months at the all-time low of 0.3 percent.

Credit approvals totaled 78.6 percent in July, relatively unchanged from the previous two months. Fifty-eight percent of participating organizations reported submitting more transactions for approval during July, up from 54 percent the previous month.

Finally, total headcount for equipment finance companies was up one percent year over year.

Separately, the Equipment Leasing & Finance Foundation's Monthly Confidence Index (MCI-EFI) for August is 61.0, up for the fourth consecutive month and an increase from the July index of 59.4.

ELFA President and CEO William G. Sutton, CAE, said: "The amount of new business financed during the spring and summer months continues to grow at a moderate pace. While cooling off somewhat from a torrid June, this month's increase in financing activity matches a strengthening economy evidenced by a rebounding housing market, GDP growth and declining unemployment picture. Credit markets also continue to perform well. These data points bode well for additional investment in capital equipment and an expanding U.S. economy. It will be interesting to see if this positive trend holds up as we move into late-summer and fall."

William Houston, Senior Director, Corporate Administration, Canon Financial Services, Inc., said, "The MLFI-25 leasing volume is up 10 percent year to date, with minimal change in participants' risk appetite. Aggregate delinquency and charge-off metrics are good indicators of a stable economic business environment. The data suggests the equipment leasing industry continues to enjoy strong new lease growth and healthy portfolios."

 

MLFI-25 New Business Volume
(Year Over Year Comparison)
0713-NewBusVol

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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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