Equipment Leasing and Finance Association - Equiping Business for Success

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Monthly Leasing and Finance Index June 2006

Jun 1, 2006, 19:09 PM

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:

  • 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)

0606-newbusvol

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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%

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Average Losses (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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