Equipment Finance Industry Reports New Business Volume Up

By Chemical Processing Staff

Sep 28, 2018

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.”

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