Equipment Finance Survey Reports Dip in New-Business Volume
July 16, 2009
WASHINGTON, DC - The Equipment Leasing and Finance Association (ELFA), which represents the $650 billion equipment finance sector, has released its 2009 Survey of Equipment Finance Activity (SEFA). The survey shows that new-business volume among a sample of the ELFA member companies declined 2.2 percent in 2008. This compares to a 2 percent increase in 2007 originations among the respondents to the 2008 survey. Banks’ share of new-business volume grew slightly by 0.9 percent, while Captives and Independents’ volume decreased by 1.8 percent and 8.1 percent, respectively.
“The Survey of Equipment Finance Activity is the broadest compendium of industry data, comprising a representative cross section of equipment lease and loan origination by product, structure and origination,” said ELFA President Kenneth E. Bentsen, Jr. “The survey is unique to the ELFA and provides a baseline and benchmark for companies operating in the equipment finance space.”
The SEFA (formerly known as the Survey of Industry Activity or SIA), provides quantitative information about the status of the equipment finance industry. It collects statistical, financial and operations information for equipment finance organizations for year-over-year comparisons through a voluntary survey of member companies. In the 2009 SEFA project, 122 reporting entities participated in the survey as compared to 154 the prior year.
Industry member respondents report that profitability is constrained as seen by a weighted average return on equity (ROE) of 11 percent, a decline from 12 percent in 2007. Return on assets (ROA) also suffered, falling to 1.2 percent from 1.9 percent during the year-earlier period.
For more information about the survey, visit www.elfaonline.org/ind/Research/.