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

Monthly Leasing and Finance Index February 2005

Feb 1, 2005, 13:05 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 February 2005. the key metrics highlighted in the February MLI are mixed.

New Business Volume declined from January's $4 billion to $3.2 billion in February, a drop of 21.5%. The drop in originations in February is attributable in part to a sizeable portfolio acquisition by one of the responding leasing companies and end-of year business closing for another respondent in January, both of which may have inflated the business volume numbers that month. Other respondents indicated that new originations are always lower in the first quarter of a new year, also contributing to the decline. Accompanying this decline is a lower Credit Approval Ratio as lessors seemed to tighten their credit policies during the month. Respondents approved 75.4% of all credit applications submitted, compared with 89.1% in the prior month. On the other hand, Delinquencies (net of unearned income billed but not yet received) improved very slightly in the under-30 days category, 97.95% in February compared to 98.11% in January. Average Charge-offs remained virtually unchanged. The Total Number of Employees rose slightly, from 8,752 in January to 8,926 in February, representing a 2% increase.

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.

Participants in the February 2005 Monthly Leasing Index:

  • ADP Credit Corporation
  • Amsouth Leasing Corporation
  • 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 Lombard
  • 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

(Net Investment)
  Jan. Feb.
Less than 30 days 98.11 percent 97.95 percent
31-60 days 0.96 percent 1.03 percent
61-90 days 0.28 percent 0.41 percent
Over 90 days 0.65 percent 0.61 percent

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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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