Aug 25, 2014
U.S. new business volume up
U.S. – 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 $827 billion equipment finance sector, showed overall new business volume for July was $7.8 billion, up 8 per cent from new business volume in July 2013.
Month over month, new business volume was down 13 per cent from June. Year to date, cumulative new business volume increased 4 per cent compared to 2013.
Receivables over 30 days increased from the previous month to 2.7 per cent, and were up from 1.5 per cent in the same period in 2013. Charge-offs were unchanged for the fourth consecutive month at an all-time low of 0.2 per cent.
Credit approvals totaled 79.7 per cent in July, a slight decrease from 80.1 per cent the previous month. Total headcount for equipment finance companies was up 0.4 per cent year over year.
ELFA president and CEO William G. Sutton, CAE, says, “After a solid second quarter that saw an overall increase in U.S. GDP and strong business investment, new business volume in the equipment finance sector continued to hold steady in July. Credit performance is mixed: monthly delinquencies were up (as a result of a single respondent-outlier) but charge-offs remained at historically low levels. For now, most ELFA member companies report good, if not spectacular, growth, and conditions appear favorable for this to continue into the late summer and early fall.”