The Equipment Leasing and Finance Association’s (ELFA) Monthly Leasing and Finance Index (MLFI-25), which reports economic activity from 25 companies representing a cross section of the $900 billion equipment finance sector, shows overall new business volume for November was $7.9 billion, up 8% year-over-year from new business volume in November 2020. Volume was down 26% month-to-month from $10.7 billion in October. Year-to-date, cumulative new business volume was up 10% compared to 2020.
Receivables over 30 days were 2.2%, up from 1.7% the previous month and down from 2.3% in the same period in 2020. Charge-offs were 0.20%, up from 0.16% the previous month and down from 0.61% in the year-earlier period.
Credit approvals totaled 77.2%, down from 78% in October. Total headcount for equipment finance companies was down 9.9% year-over-year, a decrease due to significant downsizing at an MLFI reporting company. Separately, the Equipment Leasing & Finance Foundation’s Monthly Confidence Index (MCI-EFI) in December is 63.9, a decrease from the November index of 64.6.
“As we get ready to close out 2021, industry volume is still holding up, with portfolio quality improved relative to the same period last year. Supply chain disruptions continue to plague an otherwise strong economy, creating inflationary pressures that are a concern for many Americans,” says ELFA President and CEO Ralph Petta. “With the Federal Reserve recently announcing an accelerated tapering of asset purchases as well as several planned interest rate hikes in 2022, the hope is that the Fed does not choke off the recovery in its efforts to control further inflation.”
For more information, visit: www.elfaonline.org
