The Equipment Leasing and Finance Association’s (ELFA) Monthly Leasing and Finance Index (MLFI-25) showed overall new business volume for July was $7.2 billion, up 9% compared to volume in July 2012. Month-over-month, new business volume was down 16% from June. Year to date, cumulative new business volume increased 10% compared to 2012.
Receivables over 30 days were at 1.5% in July, up slightly from the historic low of 1.4% in June. Delinquencies declined from 2.2% in the same period in 2012. Charge-offs were unchanged for the past five months at the all-time low of 0.3%.
Credit approvals totaled 78.6% in July, relatively unchanged from the previous two months. Fifty-eight percent of participating organizations reported submitting more transactions for approval during July, up from 54% the previous month.
Finally, total headcount for equipment finance companies was up one percent year over year.
Separately, the Equipment Leasing & Finance Foundation’s Monthly Confidence Index (MCI-EFI) for August is 61.0, up for the fourth consecutive month and an increase from the July index of 59.4.
ELFA president and CEO William G. Sutton, CAE, said: “The amount of new business financed during the spring and summer months continues to grow at a moderate pace. While cooling off somewhat from a torrid June, this month’s increase in financing activity matches a strengthening economy evidenced by a rebounding housing market, GDP growth and declining unemployment picture. Credit markets also continue to perform well. These data points bode well for additional investment in capital equipment and an expanding U.S. economy. It will be interesting to see if this positive trend holds up as we move into late-summer and fall.”
William Houston, senior director, Corporate Administration, Canon Financial Services, said, “The MLFI-25 leasing volume is up 10% year to date, with minimal change in participants’ risk appetite. Aggregate delinquency and charge-off metrics are good indicators of a stable economic business environment. The data suggests the equipment leasing industry continues to enjoy strong new lease growth and healthy portfolios.”
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