Receivables more than 30 days were 1.8%, down from 1.9% in May and down from 2.6% in June 2020. Charge-offs were 0.22%, down from 0.3% in May and down from 0.71% in June 2020.
Credit approvals totaled 76.7%, down from 77.4% in May. Total headcount for equipment finance companies was down 13.8% year over year in June, a decrease due to significant downsizing at an MLFI reporting company, according to the ELFA.
“If equipment finance new business volume at the end of Q2 is any indication, the second half of the year should be as strong as economists predict,” Ralph Petta, president and CEO of the ELFA, said. “Despite slower-than-desired vaccinations in certain parts of the U.S., consumer spending is accelerating, markets remain strong and unemployment continues to slowly abate, all of which are contributing to a strong economy. This portends well for the equipment finance sector as we move into the second half of 2021. Recent pronouncements from the Fed indicate that they are eyeing recent upticks in inflation warily, but interest rates should remain low — at least in the near- to medium-term.”
“2021 continues to bring economic tailwinds as demand continues to outpace supply. The June MLFI illustrates similar conditions at Hitachi Capital America,” Mark Duncan, executive vice president and COO of Hitachi Capital America, said, “Our transportation and commercial finance portfolios continue to perform well, with expectations to exceed FY 2021. Future disruptions could be attributed to supply chain and labor issues, which may take additional time to resolve.”
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