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

Monthly Leasing and Finance Index December 2010

Dec 1, 2010, 16:22 PM

Participants in the ELFA MLFI-25:

  • ADP Credit Corporation
  • Bank of America
  • Bank of the West
  • Canon Financial Services
  • Caterpillar Financial Services Corporation
  • CIT
  • De Lage Landen Financial Services
  • Dell Financial Services
  • EverBank Commercial Finance
  • Fifth Third Bank
  • First American Equipment Finance
  • GreatAmerica
  • Hitachi Credit America
  • HP Financial Services
  • John Deere Credit Corporation
  • Key Equipment Finance
  • Marlin Leasing Corporation
  • National City Commercial Corp.
  • RBS Asset Finance
  • Regions Equipment Finance
  • Siemens Financial Services
  • Susquehanna Commercial Finance, Inc.
  • US Bancorp
  • Verizon Capital Corp
  • Volvo Financial Services
  • Wells Fargo Equipment Finance

The Equipment Leasing and Finance Association's (ELFA) Monthly Leasing and Finance Index (MLFI-25), which reports economic activity for the $521 billion equipment finance sector, showed overall new business volume for December was $9.0 billion, up 27 percent compared to the same period in 2009, and a 100 percent increase from November's volume of $4.5 billion. Typically strong year-end activity is responsible for a large part of this spike in new business volume.

Year-end new business volume for 2010 was $59.6 billion, up 9.2 percent compared to 2009.

Credit quality is improved as well. Receivables over 30 days decreased to 2.7 percent in December, the lowest level in two years, down from 3.2 percent in November, declining by 37 percent compared to the same period in 2009. Losses remained stubbornly flat at 1.4 percent, when compared to the prior month, but showed dramatic improvement over the same period in 2009.

Credit standards showed some slackening as approvals increased to 75 percent in December, up from 72 percent the prior month. Two-thirds of participating organizations reported submitting more transactions for approval during the month.

Finally, total headcount for equipment finance companies remained flat in November and December, a decrease of six percent compared to the same period in 2009. Supplemental data shows that the construction and trucking sectors led the underperforming sectors in December.

Separately, the Equipment Leasing & Finance Foundation's Monthly Confidence Index (MCI-EFI) for January is 69.7, the highest since the MCI was launched in May 2009, and an increase from 64.8 in December. For more detailed information on the MCI-EFI visit www.LeaseFoundation.org

ELFA president William G. Sutton said, "While December is historically a strong month as equipment finance companies complete end-of-year transactions, we continue to be encouraged by the strength and trajectory of these trend lines in business activity."

"It is very encouraging to see the positive momentum building across so many key indicators in our industry," said Stan Herkelman, President, GreatAmerica Leasing Corporation, located in Cedar Rapids, IA, and an MLFI-25 participant. "We are cautiously optimistic as we head into 2011 and see an increasing number of businesses focusing on growth."


MLFI-25 New Business Volume
(Year Over Year Comparison)

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Aging of Receivables:


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Average Losses (Charge-offs) as a % of net receivables
(Year Over Year Comparison)
Average Losses

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Credit Approval Ratios As % of all Decisions Submitted
(Year Over Year Comparison)
Credit Approval Ratios

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Total Number of Employees
(Year Over Year Comparison)
Total Number of Employees

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