Subscribe to our free, weekly email newsletter!


Equipment Leasing and Finance Association survey shows growth

May new business up 21% year-over-year, unchanged month-to-month.
By Modern Materials Handling Staff
June 24, 2013

The Equipment Leasing and Finance Association’s (ELFA) Monthly Leasing and Finance Index, which reports economic activity from 25 companies representing a cross section of the $725 billion equipment finance sector, showed their overall new business volume for May was $7.5 billion, up 21% compared to volume in May 2012. Month-over-month, new business volume was unchanged from April. Year to date, cumulative new business volume was up 11% compared to 2012.

Receivables over 30 days were at 1.6% in May, matching an historic low, and down from the previous three months at 2%.  Delinquencies declined from 2.7% in the same period in 2012. Charge-offs were unchanged for the past three months at the all-time low of 0.3%.

Credit approvals totaled 78.8% in May, up from 77.2% in April.  Sixty-three percent of participating organizations reported submitting more transactions for approval during May, down from 72% the previous month.

Finally, total headcount for equipment finance companies was up one percent from the previous month, and up 1% year over year.

Separately, the Equipment Leasing and Finance Foundation’s Monthly Confidence Index (MCI-EFI) for June is 57.3, an increase from the May index of 56.7.

ELFA President and CEO William G. Sutton, CAE, said: “May MLFI-25 data suggest an equipment finance sector on the verge of a breakout performance. While recent key indicators show an overall improvement in lending to the small business sector, the May numbers provide concrete evidence of growing demand for productive assets by a cross section of the business community. At the same time, historic lows in delinquencies and charge-offs mean American businesses are better able to meet their financial obligations, creating a favorable environment for additional capital investment and job creation. We hope that these trends will continue into the summer.”

Robert Rinaldi, Senior Vice President, CSI Leasing, Inc., said, “The fact that all of the metrics are going in the right direction is really encouraging. Many lessors have seen these ups in new business volume (NBV) followed by subsequent down months, evidenced in the ‘saw-tooth’ pattern of the NBV chart.  But, and this is a good news ‘but,’ if you run a six-month rolling average on the NBV data over the past six years to smooth out the ‘saw-tooth,’ a clearer picture of definitive growth appears.”

Subscribe to Modern Materials Handling magazine

Subscribe today. It's FREE!
Find out what the world’s most innovative companies are doing to improve productivity in their plants and distribution centers.
Start your FREE subscription today!

Recent Entries

Acquisition to expand pharmaceutical packaging capabilities and integrated solution offering.

2016 Manufacturing Report from professional services firm Sikich explores ways to address challenges and position manufacturers for long-term growth.

The Manufacturing Institute honors 130 women with STEP Ahead Awards.

In recognition of National Small Business Week, ELFA offers leasing and financing guidance.

Manufacturing activity in April remained on the right side of growth for the second straight month, following six months of contraction, according to the April edition of the Manufacturing Report on Business from the Institute for Supply Management (ISM).

About the Author

Josh Bond, Senior Editor
Josh Bond is Senior Editor for Modern, and was formerly Modern’s lift truck columnist and associate editor. He has a degree in Journalism from Keene State College and has studied business management at Franklin Pierce University.


© Copyright 2016 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA