Equipment finance new business volumes dip

Equipment finance new business volumes dipped at the end of 2016 and were down 2% overall from 2015 totals, according to the latest data from the Equipment Leasing and Finance Association (ELFA).

The association’s monthly leasing and finance index (MLFI-25) which reports economic activity from 25 companies representing a cross section equipment finance sector, showed their overall new business volume for December was $12.1 billion, down 3% year-over-year from new business volume in December 2015.

Volume was up 89% month-to-month from $6.4 billion in November in a typical end-of-year spike. Cumulative new business volume for 2016 was down 2% from 2015.

Receivables over 30 days were 1.40%, up from 1.30% the previous month and up from 1.10% in the same period in 2015. Charge-offs were 0.42%, up from 0.40% the previous month but virtually flat when compared to the year-earlier period.

Credit approvals totaled 77.4% in December, up from 76% in November. Total headcount for equipment finance companies was up 5.7% year over year.

Ralph Petta, ELFA president and CEO, said: “New business volume ends the year on a relatively high note, despite a slight decline in full-year 2015-16 originations. Credit market metrics remain in acceptable ranges.

“With a seemingly business-friendly Trump Administration assuming the reins of power in Washington, business owners share a cautious optimism as they look to policies that hopefully will continue growing the US economy and stimulate capital investment in the months and years ahead.”