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, firstname.lastname@example.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
- 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