Washington, D.C. (Feb. 26, 2019)—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, showed the follwing higlights:
- Overall new business volume for January was $7.2 billion, up 4 percent year-over-year from new business volume in January 2018.
- Volume was down 43 percent month-to-month from $12.7 billion in December, following the typical end-of-quarter, end-of-year spike in new business activity.
- Receivables over 30 days were 1.70 percent, unchanged from the previous month, and down from 1.90 percent the same period in 2018.
- Charge-offs were 0.35 percent, down from 0.55 percent the previous month, and virtually unchanged from the year-earlier period.
- Credit approvals totaled 76.1 percent in January, down from 77.9 percent in December. Total headcount for equipment finance companies was flat year over year.
- Separately, the MCI-EFI in February is 56.7, up from the January index of 53.4.
ELFA President and Chief Executive Officer Ralph Petta said, “2019 gets off to a strong start in the equipment finance industry, with new business volume increasing 4 percent over the same period last year. Credit quality is stable. Business owners continue to expand their operations and acquire productive assets, even as interest rates edge up ever so slightly, with the Fed signaling a cautious wait-and-see posture for additional interest rate hikes this year.” For more information, visit elfaonline.org.