ELFA’s July leasing activity index down slightly from June

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 $900 billion equipment finance sector, showed their overall new business volume for July was $10.1 billion, up 2 percent year-over-year from new business volume in July 2021, but down 2 percent from $10.3 billion in June.

Year-to-date, cumulative new business volume was up 5 percent compared to 2021.

Receivables over 30 days were 1.6 percent, up from 1.5 percent the previous month and down from 1.9 percent in the same period in 2021. Charge-offs were 0.18 percent, up from 0.15 percent the previous month and unchanged from the year-earlier period.
Credit approvals totaled 78.0 percent, down from 78.1 percent in June. Total headcount for equipment finance companies was down 2.8 percent year-over-year.

Separately, the Equipment Leasing & Finance Foundation’s Monthly Confidence Index (MCI-EFI) in August is 50, an increase from 46.1 in July.

ELFA President and CEO Ralph Petta said, “Industry performance continues to show solid growth. Despite higher interest rates, continued supply chain disruptions, and higher inflation, the equipment finance industry continues to deliver value to businesses who rely on it to acquire necessary capital equipment to run their operations. Equipment finance providers leverage a positive credit environment and abundant liquidity to help these businesses grow and prosper.”