Equipment Type

Equipment Finance Sector Records $6.9B in January

Overall new business volume in the equipment finance sector was up 10 percent in January, compared to January 2017; down 46 percent compared to December 2017.

February 26, 2018
Equipment finance volume for January was reported to be $6.9 billion

Overall new business volume in the equipment finance sector was up 10 percent in January, compared to January 2017, according to the Equipment Leasing and Finance Association’s (ELFA) Monthly Leasing and Finance Index. Volume was down 46 percent compared to December 2017.

Volume for January was reported to be $6.9 billion by the index, which reports economic activity from 25 companies representing a cross section of the $1 trillion equipment finance sector.

Receivables over 30 days were 1.9 percent, up from 1.5 percent in December and up from 1.7 percent in January 2017. Charge-offs were 0.34 percent, down from 0.48 percent in December, and down from 0.43 percent in January 2017.

Credit approvals totaled 76.9 percent in January, down from 77.6 percent in December.

“A confident commercial sector of the U.S. economy showed itself with double-digit growth in the dollar volume of financed equipment for the month of January,” said Ralph Petta, president/CEO. “Despite a spike in delinquencies, which bears a watchful eye for signs of deterioration in credit markets in the coming months, the new year gets off to a strong start for the equipment finance industry. Business owners continue to expand their operations and acquire productive assets, even as interest rates edge up ever so slightly and the Fed is poised to cool an overheated economy.”

According to ELFA, this is the only index that reflects capital expenditure, or the volume of commercial equipment financed in the U.S. The index is a time series that reflects two years of business activity for the 25 companies currently participating in the survey.

Full data available here.

Source: ELFA

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