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Monthly Leasing and Finance Index November 2005

Nov 1, 2005, 18:19 PM

Please Note:

ELA's name, address, web site and contact info have all changed since the information below was originally published. For additional information on this and other ELFA research materials, please contact Bill Choi at bchoi@elfaonline.org or 202.238.3413.

The Equipment Leasing Association (ELA) recently issued the results of the Monthly Leasing Index (MLI), which surveys approximately 20 major equipment leasing companies on a monthly basis. In November, respondents reported $3.9 billion in new business volume for equipment leases and loans originated during the period. This total was down from the prior month's $6.59 billion. However, the spike in October's originations data reflected an extraordinary increase in new business on the part of at least one reporting company. The November total appears in line when compared to new business volume originated by MLI respondents in prior months.

Portfolio performance remained stable, with delinquencies and charge-offs fairly constant when compared to the prior month's data. "This is all the more noteworthy, given the fact that at least one responding company experienced some deterioration in its portfolio quality that resulted from a write down of commercial aircraft assets leased to bankrupt airlines," observed Ralph Petta, ELA Vice President-Industry Services .

November's credit approval ratio mirrors the October number, at 82.7 percent. The total number of employees decreased slightly to 8,953 compared to 8,962 the prior month.

"We look for a typically strong December to end the year," said Petta.

The MLI provides trend analysis across all major performance areas of lessors, including new business volume, aging of receivables, average loss, credit approval ratios and number of employees.

Because the same companies participate in the study each month, the MLI provides a fairly reliable and consistent trend analysis of current industry activity. Results of each MLI are posted on the ELA website and in Equipment Leasing Today magazine.

In addition to the MLI, ELA provides a variety of data, including customized market analyses, to ELA members and organizations involved in the forecasted $248 billion equipment leasing industry. To access this and other industry information, visit the ELA website at http://www.elaonline.com/Research/ or contact Dean Frutiger at (703) 516-8380.

Participants in the November 2005 Monthly Leasing Index:

  • ADP Credit Corporation
  • Amsouth Leasing Corporation
  • Bank of America
  • Caterpillar Financial Services Corporation
  • CIT
  • De Lage Landen Financial Services
  • First American Equipment Finance
  • GreatAmerica Leasing
  • Hitachi Credit America Corp.
  • HP Financial Services
  • John Deere Credit Corporation
  • Key Equipment Finance
  • LaSalle National Leasing Corporation
  • Marlin Leasing Corporation
  • RBS Asset Finance
  • Siemens Financial Services
  • U.S. Bancorp Leasing & Financial
  • Verizon Capital Corporation
  • Wells Fargo Equipment Finance

Total New Business Volume (Leases and Loans)
1105-newbusvol

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Aging of Receivables (2005)

  Less Than 30 Days 31-60 Days 61-90 Days Over 90 Days
Jan 98.11% 0.96% 0.28% 0.65%
Feb 97.95% 1.03% 0.41% 0.61%
Mar 98.46% 0.64% 0.32% 0.58%
Apr 98.00% 0.80% 0.40% 0.80%
May 98.10% 0.80% 0.30% 0.80%
Jun 98.00% 0.80% 0.30% 0.90%
Jul 97.70% 0.90% 0.40% 1.00%
Aug 97.95% 0.81% 0.36% 0.88%
Sep 97.92% 0.85% 0.35% 0.88%
Oct 97.81% 0.90% 0.42% 0.87%
Nov 97.75% 0.85% 0.42% 0.99%

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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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