US equipment finance business volume up 12%

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.”