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 $1 trillion equipment finance sector, shows their overall new business volume for October was $11.3 billion, up 6% year-over-year from new business volume in October 2021. Volume was up 11% from $10.2 billion in September. Year-to-date, cumulative new business volume was up nearly 6% compared to 2021.
Receivables over 30 days were 1.7%, up from 1.5% from the previous month and unchanged from the same period in 2021. Charge-offs were 0.18%, up from 0.17% the previous month and up from 0.16% in the year-earlier period. Credit approvals totaled 77.0%, down from 77.3% in September. Total headcount for equipment finance companies was down 4.7% year-over-year.
Separately, the Equipment Leasing & Finance Foundation’s Monthly Confidence Index (MCI-EFI) in November is 43.7, a decrease from the October index of 45.
“The equipment finance industry demonstrates its typical resilient nature, producing an increase in October new business volume despite months of interest rate hikes brought on by the Fed’s efforts to control inflation,” say ELFA President and CEO Ralph Petta in a press release from the organization. “Despite the specter of an imminent recession—as many economists predict—equipment finance organizations continue to do what they do best, help supply the nation’s businesses with productive assets that enable them to survive and thrive.”
Read the press release at: www.elfaonline.org
