WASHINGTON (MNI) – The following is a text from the Equipment
Leasing and Finance Association saying new business for commerical
equipment financed in the U.S. was up 11% year over year in the month of
April, released May 24:

The Equipment Leasing and Finance Association’s (ELFA) Monthly
Leasing and Finance Index (MLFI-25), which reports economic activity for
the $521 billion equipment finance sector, showed overall new business
volume for April was $5.1 billion, up 11 percent compared to the same
period in 2010. Compared against March volume, April volume decreased
by 18 percent.

Credit quality is improved. Receivables over 30 days decreased to
3.3 percent in April from 3.5 percent in March, and declined by nine
percent compared to the same period in 2010. Charge-offs also
decreased, from 1.3 percent in March to 0.8 percent in April, and showed
improvement over the same period in 2010.

Credit standards remained steady as new application approvals
increased slightly to 76 percent in April from a revised 75 percent
approval rate in March. Forty-five percent of participating
organizations reported submitting more transactions for approval during
the month, down from 50 percent in March.

Finally, total headcount for equipment finance companies increased
for the first time in six months, and was up one percent year-over-year.
Supplemental data shows that the construction and trucking sectors
continued to lead the underperforming sectors in April.

Separately, the Equipment Leasing & Finance Foundation’s Monthly
Confidence Index (MCI-EFI) for May is 63.2, down from the April index of
70.3, indicating a more measured outlook due to the uneven performance
in certain sectors. For more detailed information on the MCI-EFI visit
www.LeaseFoundation.org

ELFA President and CEO William G. Sutton, CAE, said: “All of
April’s business performance indicators appear to provide evidence that
the equipment finance sector continues to gain momentum. Recent
anecdotal information from ELFA members gathering in Washington, D.C.,
for a series of leadership meetings in mid-May supports the observation
that new business activity is strengthening and credit quality
improving.”

“In line with the MLFI-25 results, there is clearly optimism in
most commercial sectors as we move away from the economic pause,” said
Aylin Cankardes, President, Rockwell Financial Group, located in
Centennial, Colo. “We are experiencing a steady pattern of business
volume growth in both the renewable space and the manufacturing markets.
Credit for capital investments is now more readily available and
starting to be deployed. Elevated underwriting standards continue to
drive the focus to stronger credits, but with more lending options than
over the past couple of years.”

** Market News International Washington Bureau: 202-371-2121 **

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