Leasing and finance companies tracked by the Equipment Leasing and Finance Association (ELFA) posted a 6-percent gain in new business volume in January compared to January 2022. 

The group’s Monthly Leasing and Finance Index (MLFI-25) showed overall new business volume for the 25 companies in the index was $8.8 billion. Volume was down 32 percent from $12.9 billion in December.

“The year gets off to a strong start with healthy new business volume in January,” said Ralph Petta, president/CEO, in a statement. “Business demand for equipment financing continues unabated despite uncertain and, in some cases, conflicting economic signals: inflationary pressures, rising interest rates, a hot labor market, and easing supply chain disruptions. Credit quality bears watching, as delinquencies and charge-offs creep up from historic lows.”

Stated Nicholas Small, VP finance shared services, Cisco Systems Capital Corp.

“Although new business volumes and portfolio performance continue to be strong, uncertainty surrounding inflation and interest rates persists. This presents a bit of a dichotomy in that we see the confidence index increasing despite slight upward pressure on delinquencies and losses.

“In terms of new business, these same economic pressures will continue to drive strong demand for financial products in our industry,” he said.

Source: Equipment Leasing and Finance Association