Equipment Finance Industry Reports New Business Volume Up

Sept. 28, 2018
The Equipment Leasing and Finance Association’s Monthly Leasing and Finance Index shows their overall new business volume for August was $8.9 billion, up 14% year-over-year.

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 $1 trillion equipment finance sector, shows their overall new business volume for August was $8.9 billion, up 14% year-over-year from new business volume in August 2017. Volume was up 9% month-to-month from $8.2 billion in July. Year to date, cumulative new business volume was up 5% compared to 2017.

Receivables over 30 days were 1.90%, unchanged from the previous month and up from 1.50% the same period in 2017. Charge-offs were 0.29%, down from 0.31% the previous month, and down from 0.44% in the year-earlier period.

Credit approvals totaled 76.4% in August, up slightly from 76.2% in July. Total headcount for equipment finance companies was down 0.3% year over year. During 2017, headcount was elevated due to acquisition activity at an MLFI reporting company.

Separately, the Equipment Leasing & Finance Foundation’s Monthly Confidence Index (MCI-EFI) in September is 65.5, up from the August index of 60.7.

“Members report continued strong origination volume as the summer comes to a close. Fundamentals in the U.S. economy are favorable for capex investment by both large and small borrowers, and a number of asset classes and equipment verticals are benefiting,” ELFA President and CEO Ralph Petta says. “Steadily rising interest rates, a spate of disagreements with our trading partners and a powerful hurricane have seemingly little, to no, effect on the U.S. economy and its continued vitality.”

For more information, visit: www.elfaonline.org

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