The Equipment Leasing and Finance Association reported that overall new business volume for November was $7.5 billion, up 17% compared to the same month a year ago. However, volume was down 11% from $8.4 billion in October. Year to date, cumulative new business volume was up 5% compared to 2016.

Receivables over 30 days were 1.5%, up from 1.4% the previous month and up from 1.3% the same period in 2016. Charge-offs were 0.42%, up from 0.41% the previous month, and up from 0.4% in the year-earlier period.

Credit approvals totaled 73.6% in November, down from 74.6% in October. Total headcount for equipment finance companies was up 17.9% year over year, largely attributable to continued acquisition activity at an MLFI reporting company.

Separately, the Equipment Leasing & Finance Foundation’s Monthly Confidence Index (MCI-EFI) in December is 69.4, up from 67.0 in November.

ELFA President and CEO Ralph Petta said, “As we near the end of the fourth quarter, new business volume for the month continues the moderate growth trend in the equipment finance industry that began a few years ago. Despite a slight deterioration in credit quality, the industry appears poised to end the year on a high note. Time will tell if conditions favorable to business investment will remain in place in the coming year. We think so. Members typically look forward to a strong closing month and December looks to be no exception.”

Gary W. LoMonaco, vice president-treasurer for Forsythe/McArthur Associates, said, “2017 has been a very strong year for investment in capital equipment. The year-over-year originations numbers reflect that strength. Although many forecasts for 2018 expect somewhat lower capital investment levels, the equipment leasing and finance industry is optimistic for next year, as rising interest rates have historically driven companies toward financing acquisitions rather than paying cash. There is also excitement around fresh financial offerings such as consumption-based and managed services financing.”