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 April was $8.8 billion, up 11 percent year-over-year from new
business volume in April 2018. Volume was up 7 percent month-to-month
from $8.2 billion in March. Year to date, cumulative new business volume
was down 5 percent compared to 2018.
Receivables over 30 days were 1.50 percent, down from 1.90 percent the
previous month and down from 2.40 percent the same period in 2018.
Charge-offs were 0.32 percent, down from 0.37 percent the previous
month, and up slightly from 0.30 percent in the year-earlier period.
Credit approvals totaled 76.8 percent, up from 75.3 percent from March.
Total headcount for equipment finance companies was up 0.3 percent
Separately, the Equipment Leasing & Finance Foundation’s Monthly
Confidence Index (MCI-EFI) in May is 59.2, up from the April index of
President and CEO Ralph Petta said, “Second quarter new business
volume starts off strongly. Continued low interest rates, a strong labor
market and solid economic fundamentals all contribute to healthy demand
by U.S. businesses—both large and small—for financed assets to run their
business operations. Historically elevated credit quality also remains a
signature feature of financing transactions conducted by ELFA members.”
A. Coyle, Executive Director, Macquarie Group Ltd., said,
“The MLFI shows a strong improvement over last year and a large jump
from March, but this followed lackluster growth in Q1 otherwise.
Confidence rose slightly, and the economy felt more stable. However,
going into May with the looming trade war and rippling effects into
various sectors in the economy, we expect that companies will defer
asset acquisitions until stability returns. Overall economic conditions
and low interest rates should provide some cushion.”
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
To read a detailed description and methodology of the MLFI-25, visit http://www.elfaonline.org/Data/MLFI/
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.