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
- 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