July 24 , 2014
ELFA: 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 their overall new business volume for June was $9 billion, up five per cent from new business volume in June 2013.
Month over month, new business volume was up 30 per cent from May. Year to date, cumulative new business volume increased three per cent compared to 2013.
Receivables over 30 days decreased from the previous month at 1.6 per cent, and were up from 1.4 per cent in the same period in 2013. Charge-offs were unchanged for the third consecutive month at an all-time low of 0.2 per cent.
Credit approvals totaled 80.1 per cent in June, an increase from 76.1 per cent the previous month. Total headcount for equipment finance companies was up one per cent year-over-year.
Separately, the Equipment Leasing & Finance Foundation’s ‘Monthly Confidence Index’ (MCI-EFI) for July is 61.4, unchanged from the previous month.
ELFA president and CEO William G. Sutton, CAE, says, “New business volume shows steady year-over-year growth as businesses continue to invest in plant and equipment. It remains to be seen whether and to what extent the Fed’s recent stance toward a gradually tightened monetary policy and resultant increase in short- and long-term rates in the coming months is providing a stimulus for this rise in capital expenditure.”