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

Monthly Leasing and Finance Index September 2011

Sep 1, 2011, 15:50 PM

Participants in the ELFA MLFI-25:

  • ADP Credit
  • BancorpSouth Equipment Finance
  • Bank of America
  • Bank of the West
  • BB&T Bank
  • BMO Harris Equipment Finance Company
  • Canon Financial Services
  • Caterpillar Financial Services
  • 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
  • Huntington Equipment Finance
  • John Deere Financial
  • Key Equipment Finance
  • M&T Bank
  • Marlin Leasing
  • Merchants Capital
  • PNC Equipment Finance
  • RBS Asset Finance
  • SG Equipment Finance
  • Siemens Financial Services
  • Stearns Bank
  • Suntrust
  • Susquehanna Commercial Finance
  • US Bancorp Equipment Finance
  • Verizon Capital
  • Volvo Financial Services
  • Wells Fargo Equipment Finance

The Equipment Leasing and Finance Association's (ELFA) (MLFI-25), which reports economic activity for the $628 billion equipment finance sector, showed overall new business volume for September was $7.1 billion, up 25 percent from volume of $5.7 billion in the same period in 2010. Volume was also up 25 percent from the previous month. Year-to-date cumulative new business volume is up 25 percent as well.

Credit quality metrics were mixed. Receivables over 30 days decreased to 2.3 percent in September from 2.5 percent in August, and declined by 32.4 percent compared to the same period in 2010. However, charge-offs increased 50 percent from August, and decreased by 43.8 percent from the same period in 2010.

Credit standards tightened in September as the number of lease applications approved decreased nominally to 76.5 percent from 77.6 percent the previous month. Sixty percent of participating organizations reported submitting more transactions for approval during the month.

Finally, total headcount for equipment finance companies in September showed no significant change month to month and was down 1.4 percent year over year. Supplemental data show that the construction and trucking industries and small- and medium-sized enterprises led the underperforming sectors.

Separately, the Equipment Leasing & Finance Foundation's Monthly Confidence Index (MCI-EFI) for October is 50.7, up from the September index of 47.6. For more detailed information on the MCI-EFI visit www.LeaseFoundation.org

ELFA President and CEO William G. Sutton, CAE, said: "Our industry continues to show signs of strengthening despite a stubbornly stagnant U.S. and global economy. The spike in write-offs during the period shows that some lease and loan portfolios are under pressure. However, our trends in new business volume growth and delinquency experience both appear to continue to trend in the right direction."

Anthony R. Sasso, President of TD Equipment Finance, a subsidiary of TD Bank, N.A., located in Cherry Hill, NJ, said, "Our results at TD Equipment Finance are consistent with the data in the September MLFI, particularly in the area of New Business Volume. Our 2011 volumes have outpaced 2010 largely driven by growth in the Public Finance, Healthcare, Trucking and Renewable Energy sectors. Our credit quality metrics, aging of receivables and charge offs, also continue to improve from last year. Notwithstanding events in the global economy, we're seeing slow but steady growth in our pipelines of opportunities."


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

:: TOP top


Aging of Receivables Over 30 Days:


:: TOP top


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

:: TOP top


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

:: TOP top


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

:: TOP top