July/August 2009

 
Summer's heat is upon us, and the markets aren't making it any cooler. While economic optimism is far from being established, we are beginning to see glimmers of light at the end of the proverbial tunnel. The Foundation recently launched a new product - the Monthly Confidence Index for the Equipment Finance Industry - which will help gauge our optimism (or lack thereof) as the industry navigates its way to better times. Check out the MCI-EFI story below. Again, thanks to our generous contributors, The Foundation is able to continue to deliver important information to the industry - such as the MCI-EFI, -- and keep its eye on the industry's future even in these turbulent times. Thank you, and stay cool!

Lisa A. Levine, CAE
Executive Director

This fall two new studies debut by the Equipment Leasing & Finance Foundation. Recently approved for funding, the two studies are sure to be highly anticipated, as they address two frequently-discussed topics in the industry: the future of the captive and healthcare markets.

     The Foundation recently launched a new Monthly Confidence Index for the Equipment Finance Industry (MCI-EFI). Debuting in May, the Index was developed to give a quick, one-number look at the equipment finance sector's confidence in business, helping industry outsiders gain greater understanding of the sector and its dynamics.

     The May 2009 Index showed a confidence rating of 49.20 on a 100 point scale. The June 2009 Index rating increased slightly with a score of 51.8, showing that perhaps a light at the end of the tunnel exists.

The Journal of Equipment Lease Financing has been bringing engaging and relevant topics to light for the industry for more than two decades. The most recent issue included an article, "Business Process Improvement in Equipment Finance", which once again proved the reason why the Journal has such a long-standing readership. The Business Process article showcases one of the secrets of improving your competitive edge in the industry -- revamping business processes.

      For more than 20 years, the industry has tapped into the Foundation for unbiased, independent research reports, studies and articles. The Foundation is 100 percent contributor supported, and as the only organization that delivers future-forward research in equipment leasing and finance, contributions are directly supporting the industry and its customers. By donating, individuals also are essentially investing in their company's future.

      If you have not already done so, please consider a generous contribution this year. Contributors receive all studies and research free of charge, a good return on investment for donations. Please visit our contributions page for more information.

   Each foundation study or research project begins with an idea and a request for proposal. Researchers and other interested parties may then propose how they would approach the project, provide questions they seek to answer in their work, and the issues they will consider as they conduct their research. The research committee then selects the researcher best suited to the project.

  The Foundation currently has several RFPs in the field seeking researchers, including:

• Credit market and equipment finance portfolio characteristics;

   
  

• Innovation in the design and execution of asset finance funding strategies; and

   
  

• Infrastructure financing.

    RSS, which stands for Really Simple Syndication, has been a relatively new, yet easy way for anyone to keep abreast of up-to-the-minute content available online. The Foundation Web site now offers an RSS feed to help eliminate clutter from your e-mail inbox.

     RSS feeds deliver content in a "feed" that you can monitor using an RSS reader. RSS readers are free software, for your desktop, through Microsoft Outlook e-mail programs, or through an online service. The reader will collect all of the updates from RSS feeds to which you subscribe, and it will display them in a central location, along with any other content to which you subscribe.

     Get updates on work that Foundation is doing in research through our RSS Feeds. To subscribe, visit http://www.leasefoundation.org/positive/. Click on the small orange box, labeled RSS, on the right hand side of the page to start.

• The Foundation Nominating Committee is in the process of selecting next year's nominees. Have someone in mind? Contact Foundation Executive Director Lisa Levine at llevine@elfaonline.org
• Have an idea/topic you'd like to make into a Journal article? The Foundation is always welcoming new ideas for the Journal of Equipment Lease Financing articles. For more information, please visit our Journal tab at http://www.leasefoundation.org/.
• The Foundation seeks research study ideas on an ongoing basis. The research committee meets monthly, and ideas should be forwarded to The Foundation by the 1st of any month.
• Contributions to the Foundation may be made online! Visit www.leasefoundation.org/Donate to make your donation today.

The collective leasing portfolios of Hispanic American leasing and finance companies total approximately US$20 billion. The industry grew more than 38% in 2007. Prior to the credit crisis of 2008-09 funding generally was available in most countries; however, today, funding availability remains an issue for the foreseeable future. But, Latin American countries (including the largest - Chile, Colombia, Peru and Argentina - and the smaller countries of Ecuador, Venezuela, Costa Rica, Honduras, Panama, Bolivia and the Dominican Republic) have more than 264 million people with an average purchasing power of US$6,560, providing an opportunity for economic growth.

Source: Hispanic Latin American: Discovering Success in Equipment Finance