Equipment Finance News

US equipment finance business volume up 12%

Share
petta ralph 400

New business volume in the US equipment finance market continues to rise and was up 12% in March compared to the same month last year, according to the latest figures from the Equipment Leasing and Finance Association (ELFA).

Its monthly leasing and finance index (MLFI-25), based on reports from a cross section of 25 companies in the sector, showed their overall new business volume for March was $9.1 billion, up 2% year-over-year from new business volume in March 2017.

Volume was up 18% from $7.7 billion in February. Year to date, cumulative new business volume was up 12% compared to 2017.

The statistics show receivables over 30 days were 2%, up from 1.60% the previous month and up from 1.4% the same period in 2017.

Charge-offs were 0.51%, up from 0.28% the previous month, and down from 0.68% in the year-earlier period.

Ralph Petta, ELFA president and CEO, said: “The first quarter of the year concludes with a continued steady increase in new business growth.  Tempering this trend, which reflects sound fundamentals in the overall economy and high business confidence, is the reality that charge-offs and delinquencies are also inching forward, ever so slightly.”

Survey respondents remained positive, with Michael Romanowski, president, Farm Credit Leasing Services Corporation saying: “New business is on parity with 2017, which we will take as a win. Customers are continuing to analyze the impact of tax reform, and in some cases, deciding to delay investment or pay cash for capital expenditures. As the year progresses, we expect many customers to increase their utilization of lease financing as it continues to be an attractive option for the assets that we lease.”