Report: Monthly New Business Volume Grows 19%

Year-Over-Year Grows 16%

October 25, 2012
Manufacturing Group

The Equipment Leasing and Finance Association’s (ELFA) Monthly Leasing and Finance Index (MLFI-25), which reports economic activity for the $628 billion equipment finance sector, shows overall new business volume for September was $8.2 billion, up 16% from volume of $7.1 billion in the same period in 2011. Volume was up 19% from the previous month. Year-to-date cumulative new business volume increased 16%.

Receivables over 30 days decreased for the fourth consecutive month to 1.8%, down from 1.9% in August and down 22% when compared to the same period in 2011. Charge-offs were up slightly from the previous month at 0.5%, and down by 44% compared to the same period last year.

Credit approvals increased to 79.6% in September from 77.0% in August.  Fifty-four percent of participating organizations reported submitting more transactions for approval during September, down from 65% the previous month.

Finally, total headcount for equipment finance companies was down 0.5% from the previous month, and declined 3.2% year over year.

Separately, the Equipment Leasing & Finance Foundation's Monthly Confidence Index (MCI-EFI) for October is 53.3, relatively unchanged from the September index of 53.0, reflecting steady industry confidence despite economic, political and regulatory concerns.