Equipment Leasing and Finance New Business Volume Up 7 Percent YoY

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, showed their overall new business volume for November was $8.0 billion, up 7 percent year-over-year from new business volume in November 2017.

Volume was down 10 percent month-to-month from $8.9 billion in October. Year to date, cumulative new business volume was up 4 percent compared to 2017.

Receivables over 30 days were 1.60 percent, down from 1.70 the previous month and up from 1.50 percent the same period in 2017. Charge-offs were 0.37 percent, unchanged from the previous month, and down from 0.42 in the year-earlier period.

Credit approvals totaled 77.2 percent in November, up from 76.5 percent in October. Total headcount for equipment finance companies was up 0.1 percent year over year.
Separately, the Equipment Leasing & Finance Foundation’s Monthly Confidence Index (MCI-EFI) in December is 55.5, down from the November index of 58.5.

ELFA President and CEO Ralph Petta said, “November new business volume, although down from the prior month, is still in a very acceptable range, showing continued strength in capex spending. Charge offs and delinquencies are mixed; the quality and supply of credit are sufficient to set up a positive end of year.”

Harry Kaplun, President, Specialty Finance, Frost Bank, said, “The economic environment remains strong as evidenced by the MLFI portfolio performance exhibiting low levels of losses and delinquency. There is some reluctance with capex spending on equipment. Some of this is future economic uncertainty and some of it is the full absorption of the tax changes.”

The MLFI-25 is a time series that reflects two years of business activity for the 25 companies currently participating in the survey. The latest MLFI-25, including methodology and participants, is available at www.elfaonline.org/Data/MLFI/

Category: General Update, News