A banding device includes a frame. A feeding assembly is mounted on the frame for feeding elastic tubing into the frame. A transfer assembly disposed within the frame includes transfer arm and fingers. The fingers receive the rubber tubing as fed. A cutting assembly is disposed between the transfer assembly and the feeding assembly for cutting the tubing into bands. The fingers of the transfer assembly move between a first closed position for receiving the band and a second open position for opening the band. The transfer arm is moveable between a first position for receiving the band and a second position for transferring the band. A banding assembly disposed at the second position receives the band from the transfer assembly. The banding assembly stretches the band and receives an item to be bundled within the band. The banding assembly releases the band about the bundle.