New business volume grew 9.3% in the equipment finance industry in 2013, according to the 2014 Survey of Equipment Finance Activity (SEFA) released today by the
"We are pleased to present the 2014 SEFA and the 2014 Small-Ticket SEFA, which provide comprehensive performance metrics for the
Key findings for 2013 as reported in the 2014 SEFA include:
* Overall new business volume grew 9.3%.
- By market segment: All market segments showed growth in volume, except for the smallest segment. New business volume fell 5.9% for the micro-ticket segment but grew 14.3% for the small-ticket segment, 8.5% for the middle-ticket segment and 6.8% for the large-ticket segment.
- By organization type: After lagging for several years, independent equipment finance organizations led the industry in new business volume growth rates. Independents saw the strongest increase in new business volume (17.7%), while captives saw their volume grow by 11.3% and banks saw a 6.2% increase.
* From an asset perspective, the top-five most-financed equipment types were transportation, computer equipment, agricultural, construction and medical equipment. The top five end-user industries representing the largest share of new business volume were services, agriculture, transportation, industrial/manufacturing and wholesale/retail.
* Delinquencies remained steady between 2012 and 2013. Full-year losses or charge-offs also fell well below 1.0% overall.
* Credit approvals increased, and the percentage of those approved applications being booked and funded remained steady.
* Employment levels grew by 2%, with headcount in sales and marketing increasing, while all servicing and collections categories lost headcount.
* Given the current financial markets, cost of funds continued to decline. However, competitive pressure drove pre-tax spreads still lower in 2013 compared to previous years, to 3%, its lowest level in five years.
* Assets under management grew between 2012 and 2013. Return on assets dropped slightly in 2013 but remained healthy at 1.7%.
* Net income remained steady between 2012 and 2013 in dollar terms. Return on average equity also remained healthy at 16.8%.
About the 2014 SEFA
The SEFA is the broadest compendium of data on the equipment finance industry, comprising a representative cross-section of equipment lease and loan origination by product, structure and origination. The report provides a baseline and benchmark for companies operating in the equipment finance space through a voluntary survey of
The data are presented by organization type (bank, captive, independent); market segment (micro-ticket, small-ticket, middle-ticket, large-ticket); organization size (under
Equipment types financed, as explored in the survey, include agriculture, aircraft, construction, computers, office machines, telecommunications, rolling stock, printing, medical, industrial, trucks and trailers and other equipment types. Types of financing offered by the equipment finance companies include tax oriented leases & term loans, non tax oriented leases & term loans, off-balance sheet loans (synthetic leases), tax-exempt leases & loans (municipal and other transactions exempt from income tax) and others, including leveraged leases, discounted payment streams, revolving debt, equity and other investments.
About the 2014 Small-Ticket SEFA
The Small-Ticket SEFA is a companion report to the SEFA that focuses on respondents' small-ticket portfolios, including both micro-ticket (up to
How to Access the SEFA
Participation in the SEFA is a benefit of membership in
New this year,
Two new videos about the 2014 SEFA, featuring ELFA Research Committee Chair
[Category: Facilities Management]
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