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 $1 trillion equipment finance sector, showed their overall new business volume for April was $11 billion, up 17 percent year-over-year from new business volume in April 2023. Volume was up 18 percent from $9.3 billion in March. Year-to-date, cumulative new business volume was up 4.9 percent compared to 2023.
Receivables over 30 days were 2 percent, down from 2.1 percent the previous month and up from 1.8 percent in the same period in 2023. Charge-offs were 0.4 percent, down from 0.5 percent the previous month and up from 0.3 percent in the year-earlier period.
Credit approvals totaled 75 percent, down from 77 percent in March. Total headcount for equipment finance companies was up 1.3 percent year-over-year.
Separately, the Equipment Leasing & Finance Foundation’s Monthly Confidence Index (MCI-EFI) in May is 50.7, a decrease from the April index of 52.9.
ELFA President and CEO Leigh Lytle said, “The second quarter was off to a strong start with April MLFI results showing solid performance all around. The equipment finance industry continues to demonstrate its resilience despite informal polling of ELFA members that shows interest rates, tighter credit and inflation to a lesser degree are all impacting their businesses. Originations had double-digit growth both year over year and month to month, and credit quality is heading in a positive direction with charge-offs and delinquencies both ticking down last month. All are indicators that bear continued watching in the coming months.”
Brian Holland, President and CEO, Fleet Advantage, LLC, said, “We’re seeing a noticeable and continued uptick in business volume continuing in April, the third straight month of business growth. Even with this noteworthy trend, businesses remain focused on prudence with their operations and bottom-line discipline given the still-uncertain direction of the overall economy for the remainder of 2024. Given this environment, we’re focused on helping the transportation sector strengthen their financial bottom lines through holistic asset management strategies that allow them to optimize their equipment life cycles and take a proactive approach to their procurement initiatives in the coming years.”