ELFA May Equipment Leasing Index Up 8 Percent Year-To-Date
June 27, 2022
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 $900 billion equipment finance sector, showed their
overall new business volume for May was $9.4 billion, up 16 percent
year-over-year from new business volume in May 2021. Volume was down 10 percent
from $10.5 billion in April. Year-to-date, cumulative new business volume was up
nearly 8 percent compared to 2021.
Receivables over 30 days were 1.6 percent, down from 2.1 percent the previous
month and down from 1.9 percent in the same period in 2021. Charge-offs were
0.12 percent, up from 0.05 percent the previous month and down from 0.30 percent
in the year-earlier period.
Credit approvals totaled 76.8 percent, down from 77.4 percent in April. Total
headcount for equipment finance companies was down 3.0 percent year-over-year.
Separately, the Equipment Leasing & Finance Foundation’s Monthly Confidence
Index (MCI-EFI) in June is 50.9, an increase from 49.6 in May.
President and CEO Ralph Petta said, “May activity for MLFI-25 equipment finance
company participants shows strong origination volume and very stable credit
quality metrics. The economy continues to provide jobs and corporate America, in
general, reports strong balance sheets—all in the face of a waning health
pandemic. Offsetting this good news is high inflation, creating havoc for many
consumers, and continued supply chain disruptions and higher interest rates,
which are squeezing much of the business sector. As a result, many equipment
finance providers approach the summer months with guarded optimism.”
Scott Dienes, Senior Vice President & Head of Equipment Finance and Leasing,
Associated Bank, said, “The sustained rising interest rate environment coupled
with pandemic overhang and extreme supply chain bottlenecks have pushed for a
greater need in the equipment financing industry. With this in mind, the market
has continued a year-over-year increase in new business volume which leads us to
continue to be cautiously optimistic going forward with nearly half the year