Monthly leasing/finance index up year over year
The Equipment Leasing and Finance Association’s Monthly Leasing and Finance Index (MLFI-25), which reports economic activity from 25 companies representing a cross section of the $725 billion equipment finance sector, showed their overall new business volume for July was $7.2 billion, up 9 percent compared to volume in July 2012.
Month-over-month, new business volume was down 16 percent from June. Year to date, cumulative new business volume increased 10 percent compared to 2012, ELFA says.
Receivables over 30 days were at 1.5 percent in July, up slightly from the historic low of 1.4 percent in June. Delinquencies declined from 2.2 percent in the same period in 2012. Charge-offs were unchanged for the past five months at the all-time low of 0.3 percent, the index says.
Credit approvals also totaled 78.6 percent in July, relatively unchanged from the previous two months. ELFA says 58 percent of participating organizations reported submitting more transactions for approval during July, up from 54 percent the previous month. Finally, total headcount for equipment finance companies was up one percent year over year.
Separately, the Equipment Leasing & Finance Foundation’s Monthly Confidence Index (MCI-EFI) for August is 61.0, up for the fourth consecutive month and an increase from the July index of 59.4, ELFA says.
“The amount of new business financed during the spring and summer months continue to grow at a moderate pace,” says William G. Sutton, ELFA president and CEO. “While cooling off somewhat from a torrid June, this month’s increase in financing activity matches a strengthening economy evidenced by a rebounding housing market, GDP growth and declining unemployment picture.
“Credit markets also continue to perform well. These data points bode well for additional investment in capital equipment and an expanding U.S. economy. It will be interesting to see if this positive trend holds up as we move into late-summer and fall.”
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