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

Monthly Leasing and Finance Index December 2005

Dec 1, 2005, 19:17 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 December 2005.

In December, respondents reported $7.7 billion in new business volume for equipment leases and loans originated during the period. This total represents a huge increase over November's $3.9 billion. According to Ralph Petta, VP of Industry Services, "December's larger than normal total was expected as the fourth quarter drew to a close and respondent companies were closing as many deals as possible. Hopefully this level of new business volume will continue in 2006." One respondent reported that their December totals were greater than the rest of the year combined. All but one respondent recorded increases in their new business volume for December.

Portfolio quality remained stable with delinquencies remaining fairly constant when compared to November. Charge-offs as a percentage of net receivables, increased to 0.85% over November's 0.53%. This, however, can be attributed to one respondent with larger than average figures due to the fact that they cleaned out their aircraft portfolio, absorbing those losses.

December's credit approval ratio saw a slight downturn from November, coming in at 81.4% over November's 83.1%. The total number of employees increased slightly to 8,988 compared to 8,953 in November.

Because the same companies participate in the survey 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/Research/ or call Dean Frutiger at (703) 516-8380.

Participants in the December 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)

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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%
Dec 98.24% 0.72% 0.33% 0.74%

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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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