The Equipment Leasing and Finance Association today released its latest report on business activity from June. Economic indicators in the report were positive, showing overall new business volume at $10.9 billion, up 6% year over year from new business volume in 2022. Volume was also up 15% from $9.5 billion in May. Year to date cumulative new business volume was up 1.9% compared to 2022.
According to the association:
Receivables over 30 days were 1.8%, down from 2% the previous month and up from 1.5% in the same period in 2022. Charge-offs were 0.37%, up from 0.33% the previous month and up from 0.15 percent in the year-earlier period.
“The equipment finance industry has remained resilient through one of the most turbulent periods in recent economic history,” said Anthony Sasso, head of TD Equipment Finance. “Despite economic headwinds, like high interest rates, the equipment finance sector continues to see opportunities for growth and innovation. In fact, the year-over-year increase on overall new business volume reflected in the ELFA data is consistent with our experience here at TDEF, as customers across many sectors continue to look for financing solutions to help them acquire equipment in order to keep up with demand.”
Credit approvals totaled 76.1%, down from 76.4% in May. Total headcount for equipment finance companies was down 1.5% year-over-year.
Separately, the Equipment Leasing & Finance Foundation’s Monthly Confidence Index (MCI-EFI) in July is 46.4, an increase from the June index of 44.1.
ELFA President and CEO Ralph Petta said, “The second quarter concludes on an optimistic note, as MLFI respondents reported strong business performance coupled with a positive outlook for the short-term future of the industry. As inflation continues to decelerate and the Fed appears to be on the verge of achieving an economic soft landing, the equipment finance market enters the second half of the year in fine shape.”