ELA Report: New Biz Increased 4% 1st Q 2001 to 1st Q 2002
Performance Indicators Report Reveals Continued Growth in the Equipment Leasing and Finance Industry
New Business Volume Increased 4 Percent from First Quarter 2001 to First Quarter 2002
ARLINGTON, Va. - - The Equipment Leasing Association's (ELA) first quarter 2002 Performance Indicators Report (PIR) reveals an increase in new business volume of 4 percent since the first quarter of 2001. This is in comparison to the first quarter economic growth rate of 5.6 percent reported by the Department of Commerce. The total net portfolio for the key equipment lessors increased nearly 5 percent compared to the first quarter 2001. In contrast, the Commerce Department reported that business spending on the purchase of new industrial equipment dropped 8.2 percent in the first quarter of 2002.
"Growth in new business volume indicates strong demand for the lease product across many end-user sectors," noted Ralph Petta, ELA's vice president of industry services.
ELA's quarterly PIR tracks the performance of prominent leasing organizations in six key areas: total net portfolio, total new business volume, average losses, credit approval ratio, total number of employees and delinquencies. ELA surveys approximately 20 major leasing companies on a quarterly basis, affording trend analysis across all the performance areas.
First quarter PIR highlights include:
* Total number of employees decreased almost 4 percent from first quarter 2001
* Credit approval ratios have increased 4 percent since first quarter 2001
* Average losses have decreased 30 percent since fourth quarter 2001
* Delinquencies remain stable with a slight decline in current receivables since first quarter 2001
The PIR study is conducted quarterly by ELA, which provides a variety of data, including customized market analyses, to ELA members and organizations.
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Organized in 1961, the Equipment Leasing Association (ELA) is a non-profit association representing companies involved in
the dynamic equipment leasing and finance industry. ELA's mission is to promote the leasing industry as a major source of funds for capital investment in the United States and abroad. ELA maintains an informational portal for financial decision-makers at www.leaseassistant.org. Headquartered in Arlington, Va., ELA has more than 850 member companies and a staff of 27 professionals. Equipment leasing is estimated to be a $244 billion industry in 2002. Visit ELA online at http://www.elaonline.com.
First Quarter 2002 Performance Indicator Report Participants
ADP Credit Corporation
Amsouth Leasing Corporation
Caterpillar Financial Services Corporation
Computer Sales International, Inc.
Dana Credit Corporation
De Lage Landen Financial Services
Farm Credit Leasing Services Corporation
Fleet Capital Leasing
GreatAmerica Leasing Corporation
John Deere Credit Corporation
Hitachi Credit America Corporation
Key Equipment Finance
LaSalle National Leasing Corporation
U.S. Bancorp Leasing & Financial
Verizon Credit, Inc.
Wells Fargo Equipment Finance