Equipment Leasing and Finance Association - Equiping Business for Success

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Monthly Leasing and Finance Index May 2006

May 1, 2006, 19:11 PM

The ELA is releasing data from its MLI-25 for May. This month's index provides metrics reflecting May's activity as reported by the twenty-five participating ELA member companies.

Originations were up over 5% for the month, totaling $5.9 billion in new business volume for both equipment leases and loans. Portfolio quality remained strong with very manageable delinquencies and low loan losses. In fact, charge-offs as a percentage of net lease receivables, .39%, is identical to the previous period.

May's credit approval ratios dropped slightly from April, coming in at 79% compared with 83% the prior month. The total number of employees rose slightly in May to 10,793 from April's 10,630.

"MLI-25 data once again paints a favorable picture of a financially healthy commercial equipment leasing and financing industry", commented Ralph Petta, ELA's VP-Industry Services, who oversees compilation of the data. "Durable goods orders for capital goods increased in May as well, so we continue to see robust investment spending, which is reflected in the MLI-25 numbers", says Petta.

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 leasing and finance industry. 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)

0506-newbusvol

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Aging of Receivables:

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

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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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