ELFA - Equipment Leasing and Finance Association - Equipping Business for Success

Monthly Leasing and Finance Index August 2005

Aug 1, 2005, 19:25 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 August 2005. The key metrics highlighted in the August MLI indicate a continued slight downturn for the third quarter.

In August, new business volume decreased from July's $4.34 billion to $4.28 billion, representing a 1.4% decrease. Delinquencies (net of unearned income billed but not yet received) rose 0.25% in August to 97.95%. Although small, this reverses a trend over the last five months where delinquencies of 30 days or less have steadily declined from March's high of 98.46%. Credit approval ratios decreased very slightly to 81.7% over July's 81.9%. Average charge-offs, however, increased, coming in at 0.43%, up from July's 0.35%. The total number of employees also decreased very slightly, dropping 2.8% in July to 8,939 compared to 9,201 in July. This is the third straight month that saw total FTEs drop and the first time since February that total FTEs fell below 9,000. This may reflect the slight downturn in new business volume.

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 August 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

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Aging of Receivables

  Jan. Feb. Mar. Apr. May June July August
Less than 30 days 98.11% 97.95% 98.46% 98.00% 98.10% 98.00% 97.70% 97.95%
31-60 days 0.96% 1.03% 0.64% 0.80% 0.80% 0.80% 0.90% 0.81%
61-90 days 0.28% 0.41% 0.32% 0.40% 0.30% 0.30% 0.40% 0.36%
Over 90 days 0.65% 0.61% 0.58% 0.80% 0.80% 0.90% 1.00% 0.88%

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Average Losses
Average Loss

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Credit Approval Ratios
Credit Approval Ratios

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Total Number of Employees
Total Number of Employees

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