Equipment Leasing Association's Monthly Leasing Index For May Shows Slight Decrease in New Business Volume Compared to April's Robust Showing

Thursday, June 30, 2005

ARLINGTON, Va.--(BUSINESS WIRE)--June 30, 2005--The Equipment Leasing Association (ELA) today released the Monthly Leasing Index (MLI), which surveys approximately 20 major equipment leasing companies on a monthly basis. Results of the May 2005 MLI show a very slight downturn for the month. New business volume decreased from April's $4.7 billion to $4.04 billion in May.

'Business remains good for equipment leasing companies even with volume being down slightly,' said Ralph Petta, ELA's Vice President of Industry Services. 'April had robust growth in volume, so we're not surprised to see slightly less business volume in May.'

Delinquencies (net of unearned income billed but not yet received) remained virtually unchanged in May. Credit approval ratios also decreased very slightly to 76.0 percent over April's 76.3 percent. Average charge-offs increased, coming in at 0.42 percent from April's 0.36 percent. The total number of employees also decreased very slightly, dropping 0.2 percent in May to 9,243 compared to 9,259 in April.

The MLI is issued on the 30th of every month(1) and provides trend analysis across all major performance areas of lessors, including new business volume, aging of receivables, average loss, credit approval ratios and number of employees.

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 in Equipment Leasing Today magazine.

Charts and graphs are available for reprint to members of the accredited media. The illustrations reflect the data provided by those companies responding to that particular question. Typically, not every company polled responds to every question.

In addition to the MLI, ELA provides a variety of data, including customized market analyses, to ELA members and organizations involved in the forecasted $248 billion equipment leasing industry. To access this and other industry information, visit the ELA website at http://www.elaonline.com/IndustryData/ or contact Dean Frutiger at (703) 516-8380.

(1) Should the 30th of the month fall on a non-business day or holiday, the ELA Monthly Leasing Index will be issued on the next business day closest to the 30th."

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IT Equipment: Buying vs. Leasing

Wednesday, June 15, 2005

I found this great article on ITEdge which agains highlights some of the great options leasing offers.

With Chuck Thomas, director of Worldwide SMB Sales and Marketing for IBM Global Financing, the world's largest information technology financier, and a member of the board of directors of the Equipment Leasing Association.

Question: What are the primary advantages to leasing technical equipment vs. buying?

Thomas' Answer: Leasing is especially attractive for information technology equipment. IT assets are usually at the heart of business operations and a key enabler for growth and innovation. Today's attractive IT lease rates make it possible for companies to acquire the IT tools they need to be competitive in their marketplace while still preserving capital and credit lines for other core investments. In addition, leasing can provide important other benefits to protect and manage IT investments such as attractive technology upgrade options, Web tools for asset tracking and management, and safe and secure asset and data disposal.

Question: Is leasing generally the best alternative? Or are there situations where buying is clearly a better option?

Thomas' Answer : Leasing, especially a Fair Market Value lease based on residual value, is often the most attractive acquisition alternative, but there are situations where outright ownership may be preferred. It usually comes down to simple economics. Are there competitive lease offerings available from reputable lessors? An example where purchase might be favored could be equipment that will be used, with certainty, by a company over a very long period of time (seven to 10 years) when the usual market term is much shorter. Another example could be specialty assets that have a limited secondary market. In these instances, lessors may not be able to offer as compelling an economic benefit as purchase.

Question: What are the primary items companies should consider when evaluating lease financing arrangements?

Thomas' Answer: Selecting the right lessor is as important as the lease vs. purchase decision itself. Unfortunately, some companies choose one lessor over another based solely on the monthly cost, or lease rate factor. Their theory is that the lower the cost, the better the deal. This isn't always the case. Obviously, monthly cost is important, but companies need to remember that they are not just buying a rate; they are buying a contract and a relationship that could extend for several years through technology upgrades, extensions and additional equipment.

Some important contract factors companies should consider include: fair and straightforward contract terms and business practices, documented mid-term and end-of-lease options and responsibilities, and no hidden charges. The contract should completely document the lease or financing transaction. Companies also need to consider a lessor's reputation for integrity, honesty and reliability; their IT asset financing knowledge; and the skill and availability of their sales and customer support personnel. Global companies also need to consider the lessor's capabilities to provide consistent financing offerings, processes and support around the world."

If you are looking for help getting your hands on some new IT Equipment with Equipment Leasing, contact GCR Capital. We'd be delighted to help you.

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New Magazine Targets Home Leasing Market

While we mostly lease business equipment and FF&E for hotels, it's always fascinating to see what is going on in the industry at large. This article was related more towards the consumer market but interesting nonetheless.

I found this article on BizJournals which is a very informative site. Here's the rest of the article...

Memphis is getting a new magazine and accompanying Web site aimed at helping those looking to lease a home or for homeowners looking to lease a property.

Homesfor-Lease magazine is a free monthly publication that will enable individuals and businesses to advertise available homes for lease to the public.

ELJ Enterprises, the founding company of Homesfor-Lease, released a test issue in March and it was well received in the real estate community.

"The magazine is great. People are walking in my office with the magazine in their hand requesting to see the homes," says Don Brasfield with Rental Homes of America.

The interactive Web site, www.homesfor-lease.com, allows users to save personal profiles and receive reminders when a property that fits their requirements becomes available. Homesfor-Lease magazine will be available at Kroger stores on June 24 throughout the Memphis area.

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Equipment Leasing Industry Shows 24 Percent Increase in New Business Volume

Equipment leasing is a $200 billion dollar industry in the US and 80% of US businesses use equipment leasing.

The Equipment Leasing Association (ELA) on May 31, 2005 released the Monthly Leasing Index (MLI), which surveys approximately 20 major equipment leasing companies on a monthly basis. Results of the April 2005 MLI show new business volume increased from March's $3.8 billion to $4.7 billion in April, an increase of 24%.

Delinquencies (net of unearned income billed but not yet received) decreased very slightly for the under-30 days category to 98.0% in April compared to 98.46% in March.

Credit approval ratios, however, decreased to 76.3% over March's 83.2%.

Average charge-offs also decreased, coming in at 0.36% from March's 0.53%.

The total number of employees increased 2.1% in April to 9,259 compared to 9,072 in March, continuing the upward trend in employment.

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Leasing Associations

Here are a couple of the main Equipment Leasing Organizations in our Industry.

Equipment Leasing Association

An online hub for the equipment leasing and finance industry. The Association exists to promote and serve the general interests of the equipment leasing and finance industry.

Equipment Leasing and Finance Foundation

The Equipment Leasing and Finance Foundation, the premiere developer and disseminator of the body of knowledge for the equipment lease financing industry, since 1989. A non-profit, tax deductible organization. The Foundation, provides its publications and resources free to those studying and researching in the equipment lease financing industry and to industry professionals]

National Association of Equipment Leasing Brokers

The NAELB is an organization formed to promote the interests of equipment leasing brokers through education, advocacy, improved communication with funders and programs designed to upgrade the professionalism and profitability of brokers, funders and others engaged in the business of equipment lease financing.

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Equipment Leasing Industry Facing Challenges

Like all industries, as competition heats up service providers need to continue to focus on improving their services. GCR Equipment Leasing makes it a point to constantly strive to be unique and offer you, the end user a unique experience.

Read this snippet to find out more about how the leasing industry is shifting and adjusting.

PR Newswire June 14th, 2005
"Many companies in the equipment leasing industry follow the same lead. That is, when one organization does something that seems to work, many others follow suit. In today's tough market, some lessors think they need to model themselves after GE Capital to survive. Successful smaller, niche players in the industry, however, are wary of such an approach, wondering if it is in their best interest.

Companies in the airline business, for example, have tried to pattern themselves after Southwest Airlines and its no frills, cheap seats business model. Some airlines have struggled to realize the success of Southwest, due to the much different structures of their organizations. Niche lessors recognize the risk of falling into the same trap, forgetting what made them unique.

"Based on our observations working with a number of successful equipment leasing and finance companies, it is clear they leverage what makes them special," Deane said. "While copying someone else's success may be a sincere form of flattery, it is very difficult to execute someone else's uniqueness."

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More Equipment Leasing Books

Tuesday, June 14, 2005

Here are a few more books on Equipment Leasing

Title	Author
Complete Book of Equipment Leasing Agreements, Forms, Worksheets & Checklists	Richard M. Contino
Equipment Leasing	Nevitt, Fabozzi
Equipment Leasing Guide for Lessees	Albert R. McMeen
Handbook of Equipment Leasing : A Deal Maker's Guide	Contino, Vlamis

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LEASING UP 18 PCT IN 2004 IN ITALY, THIRD LARGEST MARKET IN EU

Monday, June 13, 2005

Again some fascinating numbers for Rome in the leasing sector. The leasing numbers are staggering. AGI online posted this article.

(AGI) - Rome, June 13 - Leasing closed the year in Italy with an increase of 18 percent, with a total stipulation above 38 billion euro.

The two figure increase continued in the first quarter of 2005, during which the leasing sector saw a gain of 18.6 percent with a total stipulation of more than 12.2 billion (10.3 billion in the first quarter 2004).

The growth characterised all sub sectors, but above all in real estate (up 19 percent in 2004, up 45 percent in the first quarter of 2005), which represents 44 percent of the Italian leasing.

The best performances were seen in large operations (above 2.5 million) on already built building, showing that companies use leasing to balance their debt in the medium term, increasing the operational spectrum of leasing.

The instrumental sector, the second most important (with 27 percent of products) is the most directly connected to the dynamics of companies, which closed the year with more than 11 billion (up 16 percent), while in the first quarter of 2005, it registered a gain of 2.73 percent, showing a weak economic situation.

Auto leasing increased 8.5 billion euro in 2004 (up 13 percent), while in the first four months of 2005, it substantially reconfirmed quarterly dynamics of last year (up 1.2 percent), a result that is positive seen the weakness in car sales. It should be said that in this sector, there was an increasing confirmation of medium to long term rentals by leasing companies.

The strong increase in the yachting sector was also seen (up 54 percent in 2004, up 32 percent in the first quarter of 2005), where yacht leasing increased in a few years from a market share below 1 percent to the current 3.3 percent. (AGI).

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