Equipment Leasing and Finance Association’s Survey of Economic Activity: Monthly Leasing and Finance Index

January New Business Volume Up 4 Percent Year-over-year

WASHINGTON–(BUSINESS WIRE)–lt;a href=”https://twitter.com/hashtag/capex?src=hash” target=”_blank”gt;#capexlt;/agt;–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 their overall new business
volume for January was $7.2 billion, up 4 percent year-over-year from
new business volume in January 2018. Volume was down 43 percent
month-to-month from $12.7 billion in December, following the typical
end-of-quarter, end-of-year spike in new business activity.

Receivables over 30 days were 1.70 percent, unchanged from the previous
month and down from 1.90 percent the same period in 2018. Charge-offs
were 0.35 percent, down from 0.55 percent the previous month, and
virtually unchanged from the year-earlier period.

Credit approvals totaled 76.1 percent in January, down from 77.9 percent
in December. Total headcount for equipment finance companies was flat
year over year.

Separately, the Equipment Leasing & Finance Foundation’s Monthly
Confidence Index (MCI-EFI) in February is 56.7, up from the January
index of 53.4.

ELFA
President and CEO Ralph Petta
said, “2019 gets off to a strong
start in the equipment finance industry, with new business volume
increasing 4 percent over the same period last year. Credit quality is
stable. Business owners continue to expand their operations and acquire
productive assets, even as interest rates edge up ever so slightly, with
the Fed signaling a cautious wait-and-see posture for additional
interest rate hikes this year.”

Dave
B. Fate, President and CEO, Stonebriar Commercial Finance
, said,
“The equipment finance industry remains robust with steady to improving
metrics as we start the new year. Multiple factors contributed to an
overall positive impact in the markets, including continued strong
reported corporate earnings, record low unemployment, strong retail
sales, trade talks moving forward in a positive fashion and the Federal
Reserve’s significant change in tone. Stonebriar Commercial Finance had
its fourth consecutive year since inception of record earnings,
originations and no delinquency or credit losses. We enter 2019 with
over $1 billion of new business volume in various stages in our
pipeline. We remain bullish about the prospects in our industry for
2019.”

About the ELFA’s MLFI-25

The MLFI-25 is the only index that reflects capex—the
volume of commercial equipment financed in the U.S.—and is released as a
complementary economic indicator the day before the U.S. Department
of Commerce
releases the durable
goods report
.

To read a detailed description and methodology of the MLFI-25, visit http://www.elfaonline.org/Data/MLFI/

About ELFA

The Equipment Leasing and Finance Association (ELFA) is the trade
association that represents companies in the $1 trillion equipment
finance sector, which includes financial services companies and
manufacturers engaged in financing capital goods. ELFA members are the
driving force behind the growth in the commercial equipment finance
market and contribute to capital formation in the U.S. and abroad. Its
575 members include independent and captive leasing and finance
companies, banks, financial services corporations, broker/packagers and
investment banks, as well as manufacturers and service providers. For
more information, please visit www.elfaonline.org.

Follow ELFA:
Twitter: @ELFAonline
LinkedIn: www.linkedin.com/groups?gid=89692
Facebook:
www.facebook.com/ELFApage

Contacts

Media/Press: Amy Vogt, Vice President, Communications and Marketing,
ELFA, 202-238-3438 or [email protected]

error: Content is protected !!