ELFA: November New Business Volume Down 12% Y/Y

The Equipment Leasing and Finance Association’s (ELFA) Monthly Leasing and Finance Index (MLFI-25), which reports economic activity from 25 companies representing a cross section of the $1 trillion equipment finance sector, showed that overall new business volume for November was $6.1 billion, down 12% from new business volume in November of last year.

“Volume in the equipment finance sector, with some exceptions, continued to slow, reflecting a pull-back in consumer spending and business investment during the second half of the year,” said William G. Sutton, ELFA president and CEO. “Credit quality is beginning to move off its historic lows, as some sectors including energy, mining and related industries continue to weaken. With one month left in the year—typically, a strong period for the equipment finance business—it remains to be seen whether total volume for 2015 remains in positive territory. Also to be monitored is the impact of slowly rising interest rates on industry performance as we move into the new year.”

In addition, volume was down 21% from $7.7 billion in October, while year-to-date cumulative new business volume increased 1% compared to 2014, providing some optimism.

“Our core business remains strong and up over 10% for the year,” said Edward Hetherington, president of Doosan Infracore Financial Solutions. “Portfolio performance continues to remain at historic lows. Leasing business continues to grow and used equipment values remain strong.”

Receivables over 30 days were 1.1%, up from 1% the previous month and up from 1.02% in the same period in 2014. Charge-offs were 0.30%, up from 0.27% the previous month.

Credit approvals totaled 79% in November, down slightly from 80.1% in October. Total headcount for equipment finance companies was up 4.7% year-over-year.

Separately, the Equipment Leasing & Finance Foundation’s Monthly Confidence Index for December is 60.2, unchanged from last month’s index.

Like this story? Begin each business day with news you need to know! Click here to register now for our FREE Daily E-News Broadcast and start YOUR day informed!

Leave a comment

View Latest Digital Edition

Terry Mulreany
Subscriptions: 800 708 9373 x130
[email protected]
Susie Angelucci
Advertising: 484.459.3016
[email protected]

View Latest Digital Edition

Visit our sister website for news, information, exclusive articles,
deal tables and more on the asset-based lending, factoring,
and restructuring industries.