ELFA Reports Equipment Finance New Business Volume Up 6% Y/Y in June

The Equipment Leasing and Finance Association’s 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 overall new business volume for June was $10.9 billion, up 6% year over year from new business volume in June 2022 and up 15% from $9.5 billion in May. Year-to-date cumulative new business volume was up 1.9% compared to 2022.

Receivables more than 30 days were 1.8% in June, down from 2% in May and up from 1.5% in the same period in 2022. Charge-offs were 0.37% in June, up from 0.33% in May and up from 0.15% in the year-earlier period.

Credit approvals totaled 76.1% in June, down from 76.4% in May. Total headcount for equipment finance companies was down 1.5% year over year in June.

Separately, the Equipment Leasing & Finance Foundation’s Monthly Confidence Index (MCI-EFI) in July is 46.4, an increase from the June index of 44.1.

“The second quarter concludes on an optimistic note, as MLFI respondents reported strong business performance coupled with a positive outlook for the short-term future of the industry,” Ralph Petta, president and CEO of the ELFA, said. “As inflation continues to decelerate and the Fed appears to be on the verge of achieving an economic soft landing, the equipment finance market enters the second half of the year in fine shape.”

“The equipment finance industry has remained resilient through one of the most turbulent periods in recent economic history,” Anthony Sasso, head of TD Equipment Finance, said. “Despite economic headwinds, like high interest rates, the equipment finance sector continues to see opportunities for growth and innovation. In fact, the year-over-year increase on overall new business volume reflected in the ELFA data is consistent with our experience here at TDEF, as customers across many sectors continue to look for financing solutions to help them acquire equipment in order to keep up with demand.”

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