ELFA: January new business volume up 6% Y/Y

ELFA: January new business volume up 6% Y/Y

Despite falling from December's high, the association's earlier predictions of a strong start to 2024 are still on track.

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 January was $9.3 billion, up 6% year-over-year from new business volume in January 2023. ELFA says volume was down 26% from $12.5 billion in December following the typical end-of-quarter, end-of-year spike in new business activity.

The association adds that receivables over 30 days were 2.3%, unchanged from the previous month and up from 1.9% in the same period in 2023, while charge-offs were up to 0.5%, from 0.4% the previous month and up from 0.3% in the year-earlier period.

Credit approvals totaled 76%, up from 75% in December, and total headcount for equipment finance companies was up 1.4% year-over-year, according to ELFA. Separately, the Equipment Leasing & Finance Foundation’s Monthly Confidence Index (MCI-EFI) in February is 51.7, an increase from the January index of 48.6.

“The optimism I expressed in last month’s MLFI continues as 2024 gets off to a strong start with solid new business volume and increased industry confidence,” said Leigh Lytle, ELFA president and chief executive officer. “It’s especially encouraging to kick off in positive territory since equipment investment—the lifeblood of the equipment finance industry—is forecast to pick up in the second half of the year. Credit quality bears monitoring since delinquencies and charge-offs, in particular, remain elevated year over year.”

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