Equipment Leasing and Finance Association - Equiping Business for Success

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Monthly Leasing and Finance Index October 2005

Oct 1, 2005, 19:20 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.

ELA recently released the results of the Monthly Leasing Index (MLI) for October 2005. The key metrics highlighted in the October MLI indicate a significant upturn in originations to begin the fourth quarter.

In October, new business volume increased from September's $5.06 billion to $6.59 billion, representing a 30.2% increase. This is the highest reported amount of new business volume for any month this year and the second month in a row that has happened. However, this increase can be attributed to one respondent more than doubling its new business volume from the previous month. Delinquencies (net of unearned income billed but not yet received) remained virtually unchanged from September, coming in at 97.8%. However, this remains below March's high of 98.46%. Credit approval ratios increased very slightly to 82.7% compared with 82.0% in September. Average charge-offs, however, decreased slightly, coming in at 0.57%, down from September's 0.69%. The total number of employees decreased slightly to 8,962 compared to 9,001 in September.

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 Equipment Leasing Today magazine.

This MLI is conducted monthly by the ELA, which 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.elaonline.com/IndustryData or call Dean Frutiger at (703) 516-8380.

Participants in the October 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)
1005-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%

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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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