Editors note: This article has been updated.
Cumulative new business volume for equipment financing was up 3.9% in 2023, compared to 2022, 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 equipment finance sector.
Overall new business volume for December was $12.5 billion, up 2% year-over-year from new business volume in December 2022. Volume was up 51% from $8.3 billion in November.
“The MLFI closes out 2023 with a strong finish despite ongoing concerns of a recession and the higher interest rate environment throughout the year," said Leigh Lytle, president/CEO, in a statement. "Positive year-end new business volume shows that U.S. businesses continue to rely on equipment financing to operate and grow. Delinquencies and losses, while historically elevated, have remained within consistent ranges since last summer. These metrics, combined with improved industry confidence, bode well for an optimistic start to 2024.”
New business for leasing was down 7% in October compared to the previous year. Overall new business volume for October was $10.4 billion, up 7 percent from $9.7 billion in September. Year-to-date, cumulative new business volume was up 0.7 percent compared to 2022.
