ELFA Reports New Business Volume Flat in April, Up 9% in 2018 Overall



The Equipment Leasing and Finance Association’s Monthly Leasing and Finance Index showed overall new business volume for April was $7.9 billion, unchanged year-over-year from new business volume in April 2017. Meanwhile, volume was down 13% month-to-month from $9.1 billion in March, but year to date, cumulative new business volume was up 9% compared to 2017.

Receivables over 30 days were 2.40%, up from 1.70% the previous month and up from 1.30% the same period in 2017. Charge-offs were 0.30%, down from 0.51% the previous month, and down from 0.38% in the year-earlier period.

Credit approvals totaled 76.2% in April, up from 75.2% in March. Total headcount for equipment finance companies was up 0.7% year over year. During 2017, headcount was elevated due to acquisition activity at an MLFI reporting company.

Separately, the Equipment Leasing & Finance Foundation’s Monthly Confidence Index in May is 64.6, down from the April index of 68.3.

ELFA President and CEO Ralph Petta said, “Responding members continue to show solid growth in new business volume, reflecting sound fundamentals in the U.S. economy. Effects of new tax legislation signed into law late last year — bringing lower corporate tax rates, 100% expensing of new and used equipment, and the ability to continue to deduct business interest expense — are serving to buoy business confidence and contribute to healthy capex levels. Delinquencies spiked during the period and, should a trend in credit quality emerge, bears watching.”

Brian Holland, president and CFO of Fleet Advantage, said, “The April MLFI index and increase in year-over-year new business volume are reflective of our results and what we see across the industry. In the transportation sector, order volume for Class 8 trucks continues at a pace well above industry capacity, driven by accelerating economic growth and near-record level freight volumes. Recent tax law changes and new lease accounting standards are positively impacting equipment procurement and the lease versus buy decision. We expect to see continued robust growth in both transportation and leasing and maintain a positive outlook for 2018.”


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