Equipment Leasing and Finance Association’s monthly leasing and finance index

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 July was $8.2 billion, up 4% from new business volume in July 2014.

Volume was down 14% from $9.5 billion in June. Year to date, cumulative new business volume increased 8% compared to 2014.

Receivables over 30 days were 1%, down slightly from 1.1% the previous month and unchanged from the same period in 2014. Charge-offs remained at an all-time low of 0.2% for the 17th consecutive month.

Credit approvals totaled 79% in July, down slightly from 79.4% in June. Total headcount for equipment finance companies was up 5.4% year over year.

Separately, the Equipment Leasing & Finance Foundation’s Monthly Confidence Index (MCI-EFI) for August is 67.4, an increase from the July index of 62.6.

ELFA president and CEO William G. Sutton, CAE, said, “The consensus forecast for the second half of 2015 is for the U.S. to show modest, if not robust, economic growth. July MLFI-25 data provide evidence of this narrative, in terms of originations, credit quality and headcount. Despite economic headwinds in parts of Europe and China, as well as constant chatter about a looming interest rate hike by the Fed, U.S. businesses in many sectors are investing steadily in productive assets, in the process relying on financing solutions for these equipment acquisitions. Hopefully, this trend continues for the balance of the year.”

Harry Kaplun, president, Specialty Finance, Frost Bank, said, “The MLFI-25 continues to support the strength in the equipment finance industry. Growing employment, minimal losses and high approval rates are all indicative of a favorable business climate.”