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

Monthly Leasing and Finance Index June 2005

Jun 1, 2005, 12:57 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 June 2005. The key metrics highlighted in the June MLI indicate a significant upturn to end the second quarter.

Perhaps most significantly, new business volume increased from May's $4.04 billion to $4.96 billion in June, representing a 22.8% increase. Delinquencies (net of unearned income billed but not yet received) remained virtually unchanged in June. Credit approval ratios increased to 82.5% over May's 76.0%. Average charge-offs also increased, coming in at 0.48%, up from May's 0.42%. The total number of employees decreased very slightly, dropping 0.2% in June to 9,225 compared to 9,243 in May. This is the second month in a row that saw total FTEs drop by 2%. Yet given the significant upturn in new business volume, this indicates an increase in employee productivity.

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 June 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
Less than 30 days 98.11% 97.95% 98.46% 98.00% 98.10% 98.00%
31-60 days 0.96% 1.03% 0.64% 0.80% 0.80% 0.80%
61-90 days 0.28% 0.41% 0.32% 0.40% 0.30% 0.30%
Over 90 days 0.65% 0.61% 0.58% 0.80% 0.80% 0.90%

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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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