Equipment Leasing and Finance Association’s Survey of Economic Activity: Monthly Leasing and Finance Index
By Business Wire News
By Business Wire News
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 their overall new business volume for June was $9.5 billion, up 4 percent from new business volume in June 2014. Volume was up 34 percent from $7.1 billion in May. Year to date, cumulative new business volume increased 9 percent compared to 2014.
Receivables over 30 days were 1.1 percent, unchanged from the previous month and up from 0.9 percent the same period in 2014. Charge-offs remained at an all-time low of 0.2 percent for the 16th consecutive month.
Credit approvals totaled 79.4 percent in June, up slightly from 79.2 percent in May. Total headcount for equipment finance companies was up 5.2 percent year over year.
Separately, the Equipment Leasing & Finance Foundation’s Monthly Confidence Index (MCI-EFI) for July is 62.6, remaining essentially the same as the June index of 63.0.
ELFA President and CEO William G. Sutton, CAE,said, “The level of new business volume at the halfway point in the year is higher than in any similar period since at least the Great Recession. In most sectors, ELFA members report robust performance, in terms of both originations and portfolio quality. Tempering this ‘things can’t get much better’ mantra is a realization that various internal and external influences, including a gradually higher interest rate environment domestically and economic woes experienced by our trading partners in the Eurozone and elsewhere, could well slow the trajectory and velocity of capital spending. Time will tell.”
Daniel P. Dyer, Co-founder and Chief Executive Officer, Marlin Business Services Corp.,said, “MLFI-25 new business activity indicates choppy but steady growth over this past year. Market and competitive forces are contributing to a multi-year trend toward lower portfolio net margins. Credit performance remains stable and favorable despite the rise in the competitive environment.”
About the ELFA’s MLFI-25
The MLFI-25 is the only index that reflects capex—the volume of commercial equipment financed in the U.S.—and is released as a complementary economic indicator the day before the U.S. Department of Commerce releases the durable goods report.
To read a detailed description and methodology of the MLFI-25, visit http://www.elfaonline.org/Data/MLFI/
About the ELFA
The Equipment Leasing and Finance Association (ELFA) is the trade association that represents companies in the $903 billion equipment finance sector, which includes financial services companies and manufacturers engaged in financing capital goods. ELFA members are the driving force behind the growth in the commercial equipment finance market and contribute to capital formation in the U.S. and abroad. Its more than 575 members include independent and captive leasing and finance companies, banks, financial services corporations, broker/packagers and investment banks, as well as manufacturers and service providers. ELFA has been equipping business for success for more than 50 years. For more information, please visit www.elfaonline.org.
Amy Vogt, Vice President, Communications and Marketing