ELFA: June New Business Volume Up by 10% Y/Y, Up 29% M/M
Published July 25, 2012
Categories: Association News
The Equipment Leasing and Finance Association’s (ELFA) Monthly Leasing and Finance Index (MLFI-25) showed overall new business volume for June was $8 billion, up 9.5% from volume of $7.3 billion in the same period in 2011. Volume was up 29% from the previous month. Year-to-date cumulative new business volume increased 14.5%.
Receivables over 30 days were 2.4%, down from 2.7% in May, and down slightly when compared to the same period in 2011. Charge-offs increased to 0.6% in June, up from 0.5% the previous month, and down by 45.4% compared to the same period last year.
Credit approvals increased to 78.7% in June from 78.3% in May. Sixty-five percent of participating organizations reported submitting more transactions for approval during June, down from 75% in May.
Finally, total headcount for equipment finance companies increased slightly from the previous month, but declined 2.6% year over year. Supplemental data show that trucking and construction led the underperforming sectors, followed by small and medium-sized enterprises.
Separately, the Equipment Leasing & Finance Foundation’s Monthly Confidence Index (MCI-EFI) for July is 51.5, up from the June index of 48.5, and reflects continuing concern over external economic factors and regulatory and political uncertainty.
ELFA president and CEO William G. Sutton, said: “Despite recent reports of a softening economy, the level of capital investment by U.S. businesses-both large and small-continues to accelerate. In fact, the volume of equipment financed in June, as illustrated by the MLFI-25, surpasses that of any single month except for year-end December activity since the beginning of the Great Recession in 2008. We hope that, in spite of the factors adversely affecting economies overseas, our businesses here at home will be able to continue to invest in productive assets.”
Rick Remiker, president, Huntington Equipment Finance, said, “The equipment finance industry is currently benefiting from several factors, including increased CAPEX financing in many sectors and improved metrics across the credit spectrum. A large part of this positive trend is due to an improving Midwest economy, formerly known as the ‘Rust Belt,’ and now being referred to as the ‘Recovery Belt.’ While all of this is good news for the industry, and near-term business trends remain positive, we remain cautious about global economic concerns dampening demand during the second half of the year.”