Overall new business in the equipment financing industry rose 1 percent in May compared to 2022, to $9.5 billion, according to the Equipment Leasing and Finance Association. Its Monthly Leasing and Finance Index (MLFI-25) reports economic activity from 25 companies representing a cross section of the $1 trillion equipment finance sector.
Volume was down 2 percent from $9.7 billion in April. Year-to-date, cumulative new business volume was up 0.9 percent compared to 2022.
“MLFI respondents show steady new business volume for the month of May,” said Ralph Petta, president/CEO, in a statement. “As the Fed puts a pause on interest rate hikes and the U.S. economy refuses to accede to a recession—at least for the time being—equipment finance companies continue to do what they do best, i.e., provide the necessary capital for businesses to grow and prosper. A number of equipment finance executives polled recently have expressed a sense of heightened optimism that the industry will continue to show steady growth, at least in the near term.”
Said Daryn Lecy, VP/COO, Oakmont Capital Services, in a statement:
“We are cautiously optimistic about the stability of the economy based on both the recent indicators and what continues to be resilient demand from businesses. The tightened liquidity remains a concern, but we have seen some small signs of localized stabilization with previously shy banks and finance companies slowly showing interest in exploring equipment finance assets. Our industry provides great support during these times by continuously thinking creatively, remaining nimble, and finding niches and opportunities as they arise.”
Source: ELFA
