ELFA: New Business Volume Rises 20% Y/Y for Equipment Finance Industry in May



According to the Equipment Leasing and Finance Association’s Monthly Leasing and Finance Index (MLFI-25), overall new business volume for May was $8.1 billion, up 20% year over year from new business volume in May 2020. In addition, volume was down 17% month to month from $9.8 billion in April and year-to-date cumulative new business volume is up nearly 7% compared to 2020.

Receivables more than 30 days were 1.9%, up from 1.8% the previous month and down from 4.3% in the same period in 2020. Charge-offs were 0.3%, unchanged from the previous month and down from 0.61% in the year-earlier period.

Credit approvals totaled 77.4%, up from 76.3% in April. Total headcount for equipment finance companies was down 13.8% year over year, a decrease due to significant downsizing at an MLFI reporting company, according to the ELFA.

Separately, the Equipment Leasing & Finance Foundation’s Monthly Confidence Index (MCI-EFI) in June is 71.3, steady with the May index of 72.1.

“Solid May new business volume growth, put in perspective, compares favorably to a low [year-over-year] base when the pandemic was raging at the beginning of the summer last year,” Ralph Petta, president and CEO of the ELFA, said. “While overall industry performance is relatively strong during the first half of this year, even more robust demand for financing is being constrained by supply chain shortages in several economic subsectors. And, with COVID-related payment modifications resolved for the most part, ELFA members report their portfolios performing well.”

Customer requests for loans and finance leases are strong, with demand for our manufactured products (trailers and containers) at all-time highs,” Jeffrey Walker, CEO of CIMC Capital, said. “Economic conditions for transportation equipment are robust, driving customers to expand their fleets. Current headwinds continue to be supply chain shortages and shipping delays. The trend in these conditions and headwinds seem likely to continue for the foreseeable future.”


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