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ELFA: September MLFI Reports New Business Volume Up by 25 Percent Year-over-year

October 25, 2011, 07:04 AM

The Equipment Leasing and Finance Association’s (ELFA) Monthly Leasing and Finance Index (MLFI-25), which reports economic activity for the $628 billion equipment finance sector, showed overall new business volume for September was $7.1 billion, up 25 percent from volume of $5.7 billion in the same period in 2010. Volume was also up 25 percent from the previous month. Year-to-date cumulative new business volume is up 25 percent as well.

Credit quality metrics were mixed. Receivables over 30 days decreased to 2.3 percent in September from 2.5 percent in August, and declined by 32.4 percent compared to the same period in 2010. However, charge-offs increased 50 percent from August, and decreased by 43.8 percent from the same period in 2010.

Credit standards tightened in September as the number of lease applications approved decreased nominally to 76.5 percent from 77.6 percent the previous month. Sixty percent of participating organizations reported submitting more transactions for approval during the month.

Finally, total headcount for equipment finance companies in September showed no significant change month to month and was down 1.4 percent year over year. Supplemental data show that the construction and trucking industries and small- and medium-sized enterprises led the underperforming sectors.
Separately, the Equipment Leasing & Finance Foundation's Monthly Confidence Index (MCI-EFI) for October is 50.7, up from the September index of 47.6. For more detailed information on the MCI-EFI visit

ELFA President and CEO William G. Sutton, CAE, said: “Our industry continues to show signs of strengthening despite a stubbornly stagnant U.S. and global economy. The spike in write-offs during the period shows that some lease and loan portfolios are under pressure. However, our trends in new business volume growth and delinquency experience both appear to continue to trend in the right direction.”

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