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 November was $8.6 billion, up 9% year-over-year from new business volume in November 2021. Volume was down 24% from $11.3 billion in October. Year-to-date, cumulative new business volume was up 6% compared to 2021.
Receivables over 30 days were 1.7%, unchanged from the previous month and down from 2.2% in the same period in 2021. Charge-offs were 0.27%, up from 0.26% the previous month and up from 0.20% in the year-earlier period.
Credit approvals totaled 77.7%, up from 77.0% in October. The total headcount for equipment finance companies was down 4.7% year-over-year.
Separately, the Equipment Leasing & Finance Foundation’s Monthly Confidence Index (MCI-EFI) in December is 45.9, an increase from the November index of 43.7.
“Moving into the final month of the year, equipment finance companies report solid performance,” said Ralph Petta, president and CEO, ELFA. “Rising interest rates seem to have little or no effect on origination volume in November. The economy grew in Q3—albeit slowly—and is expected to do so again in the current quarter. Labor markets are stable, inflation woes appear to be abating, consumers are spending, and businesses continue to expand and grow: a recipe for stable growth by providers of equipment financing.”
“New volume continues to be very strong despite continued rate hikes,” added Patrick Hoiby, president, Equify Financial. “Charge-offs and delinquency are remaining in check and overall credit quality is good. Employee count is hard to measure because many companies wish to expand, but are having hard times finding people.”