ELFA: July New Business Volume in Equipment Finance Rises 2% Y/Y

According to the Equipment Leasing and Finance Association’s Monthly Leasing and Finance Index (MLFI-25), overall new business volume for July was $10.1 billion, up 2% year over year from new business volume in July 2021. However, volume was down 2% from $10.3 billion in June. Year-to-date cumulative new business volume through the end of July was up 5% compared to 2021.

Receivables more than 30 days were 1.6%, up from 1.5% in June and down from 1.9% in the same period in 2021. Charge-offs were 0.18%, up from 0.15% in June and unchanged from the year-earlier period.

Credit approvals totaled 78%, down from 78.1% in June. Total headcount for equipment finance companies was down 2.8% year over year.

Separately, the Equipment Leasing & Finance Foundation’s Monthly Confidence Index (MCI-EFI) in August is 50, an increase from 46.1 in July.

“Industry performance continues to show solid growth. Despite higher interest rates, continued supply chain disruptions and higher inflation, the equipment finance industry continues to deliver value to businesses who rely on it to acquire necessary capital equipment to run their operations,” Ralph Petta, president and CEO of the ELFA, said. “Equipment finance providers leverage a positive credit environment and abundant liquidity to help these businesses grow and prosper.”

“We continue to see robust interest from agribusinesses and producers as they look to expand operations and lock in low long-term rates,” Michael Romanowski, president of Farm Credit Leasing, said. “Demand is outstripping supply as we continue to experience equipment delivery delays due to continued supply chain challenges. Solar leasing remains attractive, and we expect continued interest with the passing of the Inflation Reduction Act.”

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