FREE SUBSCRIPTION Includes: The Advisor Daily eBlast + Exclusive Content + Professional Network Membership: JOIN NOW LOGIN
Skip Navigation LinksHome / News / Read News

Print

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 $900 billion equipment finance sector, showed their overall new business volume for August was $7.0 billion, down 24 percent year-over-year from new business volume in August 2019. Volume was down 23 percent month-to-month from $9.1 billion in July. Year-to-date, cumulative new business volume was down 4 percent compared to 2019.

Receivables over 30 days were 2.40 percent, unchanged from the previous month and up from 2.00 percent the same period in 2019. Charge-offs were 0.75 percent, up from 0.73 percent the previous month, and up from 0.42 percent in the year-earlier period.

Credit approvals totaled 71.0 percent, down from 72.9 percent in July. Total headcount for equipment finance companies was down 1.9 percent year-over-year.

Separately, the Equipment Leasing & Finance Foundation’s Monthly Confidence Index (MCI-EFI) in September is 56.5, an increase from the August index of 48.4.    

ELFA President and CEO Ralph Petta said, “The sizeable drop in new business volume is testament to an economy that continues to struggle in certain industry sectors. Seasonality also plays a role in the noticeable decline in equipment investment in the month of August. The hope is that Congress’s inability to enact additional stimulus legislation to combat the pandemic will not slow an economic recovery that many economists, including the Fed, are projecting for the third and fourth quarters.”

Willis Kleinjan, Founder and CEO, Northland Capital Equipment Finance, said, “The new monthly data gives reason for continued apprehension about the overall economy as COVID-19 maintains its grip on the country. We have seen with many of our customers in agriculture and construction that these essential industries continue to experience growth as they are minimally impacted by the virus. Low interest rates continue to fuel those businesses and industries that are the least affected by the pandemic and are using this opportunity to expand.”







Comments From Our Members

You must be an Equipment Finance Advisor member to post comments. Login or Join Now.