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, shows their overall new business volume for January was $9.2 billion, up 28% year-over-year from new business volume in January 2019. Volume was down 29% month-to-month from $12.9 billion in December following the typical end-of-quarter, end-of-year spike in new business activity.
Receivables over 30 days were 2.00%, down from 2.20% the previous month and unchanged from the same period in 2019. Charge-offs were 0.47%, down from 0.51% the previous month, and up from 0.35% in the year-earlier period.
Credit approvals totaled 76.3%, down from 77.1% in December. Total headcount for equipment finance companies was down 3.0% year-over-year. Separately, the Equipment Leasing & Finance Foundation’s Monthly Confidence Index (MCI-EFI) in February is 58.7, easing from the January index of 59.9.
“The year starts off with a bang as January new business volume increases dramatically on a year-over-year basis,” ELFA President and CEO Ralph Petta says. “Underlying fundamentals in the U.S. economy—strong job growth, low inflation, low interest rates, continuation of a bull equities market and solid business confidence—all add up to a growing demand for productive equipment necessary to keep businesses expanding and profitable.”
For more information, visit: www.elfaonline.org
