Equipment Finance News US equipment leasing volumes up 13% in August 2014 promise “strongest performance since before the recession” Published: 24th September 2014 Share The US Equipment Leasing and Finance Association’s (ELFA) Monthly Leasing and Finance Index (MLFI-25) showed that new business volume for August was $7.2 billion, up 13% from new business volume in August 2013. Month over month, new business volume was down 9% from July. Year to date, cumulative new business volume increased 6% compared to 2013. MLFI-25 New Business Volume Receivables over 30 days increased from the previous month to 1.3%, and were up from 1% in the same period in 2013. Charge-offs were unchanged for the fifth consecutive month at an all-time low of 0.2%. Credit approvals totaled 79.5% in August, a slight decrease from 80.3% the previous month. Total headcount for equipment finance companies was up 1% year over year. Separately, the Equipment Leasing & Finance Foundation’s Monthly Confidence Index for September is 60.2, an increase from the previous month’s index of 58.9. ELFA president and CEO William G. Sutton, CAE, said: “Continued strength in new business volume reflects the uptick in overall economic activity most economists forecast for the second half of 2014. “Solid fundamentals—modest GDP growth; an improving labor market; increased consumer spending, as evidenced by strong auto sales; and low interest rates—all bode well for continued business investment in general, and the equipment finance sector, in particular.” He added: “Credit quality appears manageable as well, although the index shows a slight uptick in delinquencies. Tempering this relatively good news is concern over recent geopolitical events relating to the fight against terrorism.” Larry R. Stevens, president and chief executive officer, Med One Capital (pictured), added: “The YTD-2014 metric measured by the MLFI-25 demonstrates a solid year in the equipment finance industry. If the month-to-month trends continue for the remainder of 2014, our industry will experience the strongest new business performance since well before the beginning of the recession. “The industry seems to have recovered much of the strength and momentum that was lost during the financial meltdown and resultant uncertainties experienced in 2009 and 2010. This trend is largely consistent with what we are experiencing in healthcare equipment financing. The high quality reflected in the portfolios of the reporting companies demonstrates that in the face of increasing volume, credit quality remains a high priority within our industry. If this continues, it will serve us well as pressure grows to increase new business volumes in the years ahead.” Asset Finance Connect Asset Finance Connect brings you news and updates about UK and European auto, equipment and asset finance providers. Sign up to our newsletter Featured Stories NewsFoundation report reveals challenges in US construction industry NewsCHG-MERIDIAN establishes ISO-certified management systems throughout Europe NewsLondon electric taxi firm secures £1.6m to drive further growth Equipment Finance