Equipment Leasing and Finance Association’s Survey of Economic Activity: Monthly Leasing and Finance Index

January New Business Volume Up 12 Percent Year-over-year, Down 48 Percent Month-to-month

WASHINGTON--()--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 January was $6.7 billion, up 12 percent from new business volume in January 2014. Volume was down 48 percent from December, following the typical end-of-quarter, end-of-year spike in new business activity.

Receivables over 30 days were 1.1 percent, up slightly from 1 percent the previous month and from 1 percent the same period in 2014. Charge-offs were unchanged for the tenth consecutive month at an all-time low of 0.2 percent.

Credit approvals totaled 78.6 percent in January, unchanged from December. Total headcount for equipment finance companies was up 1.0 percent year over year.

Separately, the Equipment Leasing & Finance Foundation's Monthly Confidence Index (MCI-EFI) for February is 66.3, a slight increase from the January index of 66.1 and the highest level in the last three years.

ELFA President and CEO William G. Sutton, CAE, said: “To begin the year, equipment finance activity picked up where it left off for most of 2014. New business volume continues to grow and portfolios are performing well, despite a slight uptick in receivables over 30 days. Interest rates should remain low--at least into the spring and, perhaps, later--as the Fed keeps a close eye on prospects for inflation and the improving labor markets. As long as the U.S. economy continues to perform, and absent any geopolitical or other external shocks to the system, we are hopeful that these factors will help promote a favorable climate for continued investment by U.S. businesses in capital equipment in 2015 and beyond.”

Robert Boyer, President, Susquehanna Commercial Finance, Inc., said, “The MLFI continues to provide encouraging data points indicating sustained growth and stability in our market. In January 2015, we at Susquehanna saw a hangover effect from December, when many of our customers rushed to take advantage of the late passing of the Tax Extenders bill. This had a negative impact on application volume in January, where our comps where lower than January 2014. Most of our customers at Susquehanna are small, domestic focused businesses where low rates and energy prices are driving higher levels of optimism. With the sustained growth and strong aging performance we continue to see, I am wary of the tendency to become complacent.”

About the ELFA’s MLFI-25

The MLFI-25 is the only index that reflects capex—the volume of commercial equipment financed in the U.S.—and is released as a complementary economic indicator the day before the U.S. Department of Commerce releases the durable goods report.

To read a detailed description and methodology of the MLFI-25, visit http://www.elfaonline.org/Research/MLFI.

About the ELFA

The Equipment Leasing and Finance Association (ELFA) is the trade association that represents companies in the $903 billion equipment finance sector, which includes financial services companies and manufacturers engaged in financing capital goods. ELFA members are the driving force behind the growth in the commercial equipment finance market and contribute to capital formation in the U.S. and abroad. Its more than 575 members include independent and captive leasing and finance companies, banks, financial services corporations, broker/packagers and investment banks, as well as manufacturers and service providers. ELFA has been equipping business for success for more than 50 years. For more information, please visit www.elfaonline.org.

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Contacts

ELFA
Amy Vogt, Vice President, Communications and Marketing
202-238-3438
avogt@elfaonline.org

Contacts

ELFA
Amy Vogt, Vice President, Communications and Marketing
202-238-3438
avogt@elfaonline.org