Overall new business volume for January was $8.1 billion, a 33 percent drop from $12.1 billion in December, according to a measure of economic activity from 25 companies in the equipment finance sector. Compared to January 2020, volume was down 12 percent.
The Monthly Leasing and Finance Index uses these 25 companies to represent a cross section of the industry, according to its publisher, the Equipment Leasing and Finance Association. It said the month-to-month drop was due to the “typical end-of-quarter, end-of-year spike in new business activity.”
Credit approvals totaled 76.2 percent, up from 75.2 percent in December.
“New business volume was relatively soft in January, as is typical for early Q1 business activity for many equipment finance companies,” said ELFA president/CEO Ralph Petta, in a statement. “Portfolio quality for reporting companies is in the healthy range as well. Preliminary economic projections indicate that equipment finance activity should accelerate as overall conditions in the U.S. economy improve in 2021. Time will tell.”