Equipment Leasing and Finance Association’s Monthly Leasing and Finance Index Shows Strong Year-Over-Year Growth of 11%
26 Junio 2024 - 7:00AM
The
Equipment Leasing and Finance
Association’s (ELFA)
Monthly
Leasing and Finance Index (MLFI-25), a survey of economic
activity from 25 companies representing a cross section of the $1
trillion equipment finance sector, reports that in May:
- New business volume (NBV) was $10.2 billion, up 11% from May
2023.
- Month over month, NBV was down 7% from $11.0 billion in April
2024.
- Year to date, cumulative NBV was up 6% compared to 2023.
Additional findings include:
- Receivables over 30 days were 2.3%, up from
2.0% the previous month and up from 2.0% in the same period in
2023.
- Charge-offs were 0.4%, unchanged from the
previous month and up from 0.3% in the year-earlier period.
- Credit approvals totaled 75%, unchanged from
April.
- Total headcount for equipment finance
companies was up 1.5% year-over-year.
Separately, the Equipment Leasing & Finance Foundation’s
Monthly Confidence Index in June is 50.2, steady with the May index
of 50.7.
ELFA President and CEO Leigh Lytle said,
“Overall, May MLFI results show solid performance with continued
double-digit year-over-year growth in originations and positive
year-to-date growth. Credit quality is mixed, but within historical
norms. The drop in volume from April could be an indication that
some businesses are holding off on acquiring equipment until
interest rates come down. We’ll be monitoring whether the effect of
higher rates over the summer and into the fall will further delay
equipment investments, which would be a headwind to economic
activity through the second half of the year.”
Dave Lyder, EVP and Group Manager,
Ascentium Capital, said, “We expect to see solid, yet
temperate demand for equipment financing through 2024. Small
businesses are getting accustomed to higher-for-longer rates and
higher equipment prices due to inflation. However, some are pausing
any new investments for now. So, lenders need to remain vigilant,
not overstepping in challenged areas while, instead, focusing
capital allocation toward areas where they expect the best returns.
Small businesses remain very resilient. Though with higher rates
and stubborn inflation, this is a time for lenders to lean further
into their roles of providing practical advice to help clients make
the most strategic financial choices.”
About ELFA’s MLFI-25The MLFI-25 is the only
near-real-time index that reflects capex, or the volume of
commercial equipment financed in the U.S. It is released monthly
from Washington, D.C., one day before the U.S. Department of
Commerce's durable goods report. This financial
indicator complements reports like the Institute for Supply
Management Index, providing a comprehensive view of
productive assets in the U.S. economy—equipment produced, acquired
and financed. The MLFI-25 consists of two years of business
activity data from 25 participating companies. For more details,
including methodology and participants, visit
www.elfaonline.org/knowledge-hub/mlfi.
About ELFAThe Equipment Leasing and Finance
Association (ELFA) represents financial services companies and
manufacturers in the $1 trillion U.S. equipment finance sector.
ELFA’s 575 member companies provide essential financing that helps
businesses acquire the equipment they need to operate and grow.
Learn how equipment finance contributes to businesses’ success,
U.S. economic growth, manufacturing and jobs at
www.elfaonline.org.
Follow ELFA:X: @ELFAonlineLinkedIn:
https://www.linkedin.com/groups/89692/
Media/Press Contact: Amy Vogt, Vice President, Communications
and Marketing, ELFA, avogt@elfaonline.org