June New business volume down 1% year-over-year, Up to 10% month-over-month, up to 6% year-to-date
WASHINGTON, July 26, 2022 (GLOBE NEWSWIRE) — The Equipment Rental and Finance Association (ELFA) Monthly Lease and Finance Index (MLFI-25), which reports on the economic activity of 25 companies representing a cross-section of the $900 billion equipment finance industry, showed their aggregate new business volume for June was $10.3 billion, in down 1% year-over-year from new business volume in June 2021. Volume was up 10% from $9.4 billion in May. Year-to-date, cumulative new business volume increased by 6% compared to 2021.
30-day receivables were 1.5%, down from 1.6% the prior month and down from 1.8% in the same period in 2021. Write-offs were 0.15%, down from 0.12% the previous month. previous month and against 0.22% the previous year. earlier period.
Credit approvals totaled 78.1%, down from 76.8% in May. Total headcount at equipment finance companies fell 3.5% year-over-year.
Elsewhere, the Equipment Leasing & Finance Foundation (MCI-EFI) monthly confidence index in July was 46.1, down from 50.9 in June.
President and CEO of ELFA, Ralph Petta said: “Respondents to the June report indicate another strong month for origination and credit quality. Inflation continues to provide a headwind in an otherwise benign economy. The Fed has signaled its determination to deal with these inflationary pressures by steadily raising short-term interest rates, without throwing cold water on our post-pandemic economic recovery. Equipment finance providers have seized the opportunity, enabling businesses large and small to acquire the productive assets they need to grow their businesses and meet their customers’ needs.
Brad Peterson, CEO, Channel, said, “Channel volume over last month and year-over-year significantly exceeds MLFI-25, primarily driven by two new business units and product development. Like most, our portfolio also exceeds expectations and historical levels for delinquency and disbarments. We are intensively monitoring performance data to identify potential economic deterioration by industry, geography and equipment type, among others. The main business challenges we face today are the rapidly changing cost of funds, an uncertain economic environment and dramatic growth compounded by the complexity of finding new employees.
About the ELFA MLFI-25
The MLFI-25 is the only near real-time index that reflects capital expenditure, or the volume of commercial equipment financed in the United States. the u.s. department of commerce publishes durable goods report. The MLFI-25 is a financial indicator that complements the durable goods report and other economic indices, including the Supply Management Institute Index, which captures economic activity in the manufacturing sector. Together with the MLFI-25, these reports provide a comprehensive view of the state of productive assets in the US economy: equipment produced, acquired and financed.
The MLFI-25 is a time series that reflects two years of business activity for the 25 companies currently participating in the survey. The latest MLFI-25, including methodology and participants, is available at www.elfaonline.org/knowledge-hub/mlfi-25-monthly-leasing-and-finance-index.
The MLFI-25 is part of Knowledge Hub, the source for business intelligence in the equipment finance industry. Visit the hub at www.elfaonline.org/KnowledgeHub.
MLFI-25 methodology
ELFA produces the MLFI-25 survey to help member organizations gain a competitive advantage by providing them with cutting-edge research and benchmarking information to support strategic business decision-making.
The MLFI-25 is a barometer of investment trends in capital goods in the United States. Five components are included in the survey: volume of new business (creations), age of receivables, charges, credit approval ratios (approved vs. submissions), and headcount for financing activity of equipment.
The MLFI-25 measures monthly commercial equipment leasing and lending activity as reported by participating ELFA member equipment finance companies representing a representative sample of the equipment finance industry, including the small market, middle market, big ticket, captive and independent banking, leasing and financing. businesses. Based on reliable survey data, responses reflect economic activity in the broader equipment finance industry and current business conditions nationwide.
About ELFA
The Equipment Leasing and Finance Association (ELFA) is the trade association representing businesses in the nearly $1 trillion equipment finance industry, which includes financial services companies and manufacturers engaged in asset financing of equipment. ELFA members drive the growth of the commercial equipment finance market and contribute to capital formation in the United States and abroad. Its 580 members include independent and captive leasing and finance companies, banks, financial services companies, brokers/packers and investment banks, as well as manufacturers and service providers. ELFA has been equipping businesses to succeed for over 60 years. For more information, please visit www.elfaonline.org.
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ELFA is the premier source of statistics and analysis for the equipment finance industry. Please visit www.elfaonline.org/knowledge-hub/knowledge-hub-home for more information.
The Equipment Leasing & Finance Foundation is a 501c3 nonprofit organization that propels the equipment finance industry – and its employees – forward with industry-specific knowledge, information, and programs that contribute to industry innovation, individual careers and the overall improvement of the equipment rental and finance industry. The Foundation is funded by charitable donations from individuals and corporations. Learn more at www.leasefoundation.org.
Media/Press Contact: Amy Vogt, Vice President, Communications and Marketing, ELFA, 202-238-3438 or avogt@elfaonline.org