WASHINGTON, June 24, 2022 (GLOBE NEWSWIRE) — The Monthly Leasing and Finance Index (MLFI-25) from the Equipment Leasing and Finance Association (ELFA), which reports economic activity for 25 companies representing a cross section of the $900 billion equipment finance industry, showed their overall new business volume for May was $9.4 billion, up 16% year-over-year compared to May 2021 new business volume. Volume was down 10% from $10.5 billion in May. Since the beginning of the year, the cumulative volume of new business has increased by almost 8% compared to 2021.
30-day receivables were 1.6%, compared to 2.1% the previous month and compared to 1.9% in the same period in 2021. Charges were 0.12%, compared to 0.05% the previous month and against 0.30% the previous year. earlier period.
Credit approvals totaled 76.8%, down from 77.4% in April. Total headcount at equipment finance companies fell 3.0% year-over-year.
Meanwhile, the Equipment Leasing & Finance Foundation (MCI-EFI) Monthly Confidence Index in June is 50.9, up from 49.6 in May.
ELFA President and CEO Ralph Petta said, “May activity for MLFI-25 equipment finance company participants shows strong origination volume and credit quality metrics very stable. The economy continues to provide jobs and U.S. businesses in general are showing strong balance sheets, all in the face of a waning health pandemic. This good news is offset by high inflation, creating havoc for many consumers, as well as continued supply chain disruptions and higher interest rates, which are compressing much of the business sector. As a result, many equipment finance providers approach the summer months with cautious optimism. »
Scott Dienes, Senior Vice President and Head of Equipment Finance and Leasing, Associated Bank, said, “The sustained rising interest rate environment coupled with pandemic excess and market bottlenecks extremes in the supply chain, has increased the need in the equipment financing sector. With that in mind, the market continued a year-over-year increase in new business volume, leading us to continue to be cautiously optimistic going forward with almost half of the year over.
About ELFA’s 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. month the day before the release of the durable goods report by the US Department of Commerce. The MLFI-25 is a financial indicator that complements the Durable Goods Report and other economic indexes, including the Institute for Supply Management Index, which reports 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. companies. 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 companies in the nearly $1 trillion equipment finance industry, which includes financial services companies and manufacturers involved in the financing of capital goods. 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.
Follow ELFA: Twitter: @ELFAonline LinkedIn: www.linkedin.com/groups?gid=89692 Facebook: www.facebook.com/ELFApage 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 [email protected]
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