The Equipment Leasing and Finance Association’s (ELFA) Monthly Leasing and Finance Index (MLFI-25), which reports economic activity from 25 companies representing a cross section of the $903 billion equipment finance sector, showed their overall new business volume for November was $6.8 billion, down 8 percent from new business volume in November 2013. Month over month, new business volume was down 18 percent from October. Year to date, cumulative new business volume increased 6 percent compared to 2013.
Receivables over 30 days decreased from the previous month to 1 percent, and were up from 0.9 percent in the same period in 2013. Charge-offs were unchanged for the eighth consecutive month at an all-time low of 0.2 percent.
Credit approvals totaled 79.1 percent in November, an increase from 78.3 percent the previous month. Total headcount for equipment finance companies was up 0.7 percent year over year.
Separately, the Equipment Leasing & Finance Foundation's Monthly Confidence Index (MCI-EFI) for December is 63.4, steady with the November index of 64.2.
“The equipment finance sector has showed the kind of volatility experienced in other financial markets during this quarter. While new business volume dipped in November, member organizations’ portfolios continue to perform well, indicating a healthy business sector," said ELFA President and CEO William G. Sutton, CAE. "Liquidity continues to be plentiful, making for a hyper-competitive marketplace. Continued favorable pricing in the sector should provide a healthy environment for businesses—small and large—to make equipment investment decisions so necessary to run their business operations, add employees to their payrolls, and contribute to the overall health of the U.S. economy.”
“The MLFI-25 performance metrics for November indicate a favorable business environment. Strong originations and solid portfolio performance, together with stable customer delinquencies, all point to a continued good performance in the equipment finance sector as we close 2014 and enter into 2015," said Scott Rafkin, president, Volvo Financial Services. "Volvo Financial Services is benefiting from a generally steady economic recovery in most of our global markets, highlighted by a very strong North America. Overall, I’m pleased with how the equipment finance industry performed this month and thus far in 2014.”