Equipment Leasing and Finance Association - Equiping Business for Success

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Monthly Leasing and Finance Index September 2006

Sep 1, 2006, 19:03 PM

The Equipment Leasing and Finance Association (ELFA) Monthly Leasing and Finance Index (MLFI-25) of equipment leasing and finance activity for September releases today showing overall volume for the period increased significantly when compared to August originations. September business activity totaled $6.7 billion for new commercial equipment leases and loans. The MLFI-25 (formerly the MLI-25) provides metrics reflecting monthly commercial equipment lease and loan activity as reported by the 25 participating ELFA member equipment finance companies.

On the portfolio quality side, charge-offs as a percentage of net receivables increased from the previous month, rising to .51 percent from .41 percent. However the mixed signals in portfolio quality continue, with receivables over 90 days improving to 0.9 percent from 1.1 percent in August. September's credit approval ratios were up slightly to 79.4 percent when compared to August. Total headcount rose, to 10,794, the ninth consecutive rise in employment for the MLFI-25 companies.

"September's strong originations numbers continue to indicate a healthy corporate sector, in spite of worries of continued inflation in the economy in general," said Valerie Hayes Jester, Chairperson-elect of ELFA and President of Brandywine Capital Associates, Inc. "The equipment leasing and finance sector continues to outperform the economy in general and continues to enjoy an ever stronger portfolio performance and credit quality."

The participant companies in the MLFI-25 represent a broad cross section of the equipment finance sector including small ticket, middle market, large ticket, bank, captive and independent leasing and finance companies. Because the same companies participate in the survey each month, the MLFI-25 provides a consistent trend analysis of current industry activity. Results of each MLFI-25 are posted on the ELFA website and Equipment Leasing Today magazine. Charts and graphs are available for reprint to the media.

The ELFA provides a variety of studies, reports, and market analyses covering the $234 billion equipment finance sector. To access this and other industry information, visit the ELFA website at http://www.elfaonline.org/ind/Research/ or contact Bill Choi, bchoi@elamail.com

Participants in the ELFA MLI-25:

  • ADP Credit Corporation
  • Amsouth Leasing Corporation
  • Bank of America Leasing
  • Bank of the West
  • Canon Financial Services
  • Caterpillar Financial Services Corporation
  • CIT
  • De Lage Landen Financial Services
  • First American Equipment Finance
  • GreatAmerica Leasing Corporation
  • Hitachi Credit America
  • HP Financial Services
  • Irwin Financial
  • John Deere Credit Corporation
  • Key Equipment Finance
  • LaSalle National Leasing Corporation
  • Marlin Leasing Corporation
  • 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)

0906-NewBusVol

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Aging of Receivables:

  2006
  Jan. Feb. Mar. Apr. May June July Aug. Sept.
Less than 30 days 98.1% 97.8% 98.0% 98.0% 98.0% 98.0% 97.8% 97.6% 97.6%
31-60 days 0.9% 1.0% 1.0% 0.9% 1.0% 0.8% 0.9% 1.0% 0.9%
61-90 days 0.3% 0.4% 0.3% 0.3% 0.3% 0.4% 0.3% 0.4% 0.5%
Over 90 days 0.7% 0.8% 0.7% 0.8% 0.7% 1.0% 0.9% 1.1% 0.9%

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Annualized Average Loss (Charge-Offs as a % of Net Receivables)

Annualized 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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