New business volume up
Washington, DC--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 $903 billion equipment finance sector, showed overall new business volume for October was $8.3 billion, up nine per cent from new business volume in October 2013. Month over month, new business volume was down 12 per cent from September. Year to date, cumulative new business volume increased 8 per cent compared to 2013.
Receivables over 30 days increased from the previous month to 1.2 per cent, and were up from 0.9 per cent in the same period in 2013. Charge-offs were unchanged for the seventh consecutive month at an all-time low of 0.2 per cent.
Credit approvals totaled 78.3 per cent in October, a decrease from 79.7 per cent the previous month. Total headcount for equipment finance companies was up 0.7 per cent year over year.
ELFA president and CEO William G. Sutton, CAE, says, “ELFA members report strong growth in new business volume, albeit tempered by continued margin compression in many sectors. The U.S. economy continues to expand at a modest rate, providing a welcome stimulus for investment in business equipment. Portfolios are performing relatively well, although delinquencies are showing some slight volatility. Most economic indicators—lower fuel prices, reduced unemployment and a robust equity and bond market—all point to a strong fourth quarter, absent some unforeseen development.”
To read the full ELFA MLFI-25, click here.