WASHINGTON, June 24, 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 May was $9.4 billion, in up 16% year-over-year from new business volume in May 2021. Volume was down 10% from May’s $10.5 billion. 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.
President and CEO of ELFA, Ralph Petta said, “May activity for participants in MLFI-25 equipment finance companies shows strong origination volume and very stable credit quality metrics. 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 environment of sustained rising interest rates, coupled with the pandemic glut and extreme supply chain bottlenecks, has driven an increased need in the equipment finance industry. . 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 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.
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.
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.
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]