The Equipment Leasing and Finance Association (ELFA) released its Monthly Leasing and Finance Index (MLFI-25), a survey of economic activity from 25 companies representing a cross section of the $1 trillion equipment finance sector, which reports that in June:

• New business volume (NBV) was $10 billion, down 4% from June 2023.
• Month over month, NBV was down 2% from $10.2 billion in May 2024.
• Year to date, cumulative NBV was up 4.1% compared to 2023.

Additional findings include:

• Receivables over 30 days were 2.0%, down from 2.3% the previous month and up from 1.8% in the same period in 2023.
• Charge-offs were 0.5%, up from 0.4% the previous month and up from 0.4% in the year-earlier period.
• Credit approvals totaled 75%, unchanged for the second consecutive month.
• Total headcount for equipment finance companies was down 0.9% year-over-year.

Separately, the Equipment Leasing & Finance Foundation’s Monthly Confidence Index in July is 50.7, steady with the June index of 50.2.

“Our latest MFLI report shows modest cooling in the equipment leasing and finance industry,” Leigh Lytle, president and CEO of ELFA, said. “A pullback in origination activity at banks caused overall new business volume to dip in June after double-digit growth in the previous two months. That said, portfolio quality remained consistent, fluctuating within a narrow range as receivables improved and losses dipped. We expect financial conditions to remain solid in 2024 as recent inflation data leads the Fed to begin easing borrowing costs in September. That would boost equipment demand, which in turn should bolster economy-wide investment through the end of the year.”

“The current moment, while not simple, is a very interesting one for Amur and other well-capitalized independents,” Todd Wainwright, senior vice president, head of commerce and strategic partnerships at Amur, said. “Banks have been so dominant in our industry for so long, but with banks looking to lend less, we expect to see continued opportunities to be the go-to source of financing in the marketplace. Given our 28-year track record and time-tested platform, we are proud that we have been able to stay consistent and reliable with our partners regardless of market fluctuations.”