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WASHINGTON--(BUSINESS WIRE)--Apr 23, 2014--The (ELFA) , which reports economic activity from 25 companies representing a cross section of the $827 billion equipment finance sector, showed their overall new business volume for March was $7 billion, up 3 percent from new business volume in March 2013. Month-over-month, new business volume was up 30 percent from February. Year to date, cumulative new business volume increased 6 percent compared to 2013.
Receivables over 30 days increased to 2.1 percent from 1.8 percent the previous month, and were up slightly from 2.0 percent during the same period in 2013. Charge-offs were down at a new all-time low of 0.2 percent from 0.4 percent the previous month.
Credit approvals totaled 77.8 percent in March, an increase from 75.3 percent the previous month. Sixty-five percent of participating organizations reported submitting more transactions for approval during March, an increase from 53 percent during February.
Finally, total headcount for equipment finance companies was up 4.4 percent year over year.
Separately, the Equipment Leasing & Finance Foundation’s Monthly Confidence Index (MCI-EFI) for April is 65.1, remaining at the highest index level in two years for the second consecutive month.
, said: “Equipment finance companies in almost all industry sectors are reporting a strong first quarter of the year. The March data showing new business volume clearly provides evidence of a strong first quarter looking back and a positive forecast for future activity. The Federal Reserve recently hinted at continuing a monetary policy that will promote a sustained low interest rate environment at least for the foreseeable future, which is giving the business community a reason to feel confident about the overall trajectory of the U.S. economy and make capital investments in their businesses. Credit quality metrics are mixed, with delinquencies edging upward counterbalanced by monthly losses reaching historic lows. Another positive sign for the industry is the trend toward increased hiring during the past 10 months.”
, said, “The continued strong metrics measured by the MLFI-25 reflect the ongoing strength of the economy and, more specifically, the leasing industry. Of particular significance is the dramatic increase in new business volume from February, the record low charge-off percentage and the continued increase in headcount in the industry. If medium- and long-term rates can remain relatively stable, these results bode well for continued growth for the balance of the year.”
About the ELFA’s MLFI-25
The MLFI-25 is the only index that reflects capex —the volume of commercial equipment financed in the U.S.—and is released as a complementary economic indicator the day before the U.S. Department of Commerce releases the .
To read a detailed description and methodology of the MLFI-25, visit http://www.elfaonline.org/Research/MLFI.
For a video of the MLFI for Q1 2014, please visit http://youtu.be/UuyYiQMqBf4.
About the ELFA
The Equipment Leasing and Finance Association (ELFA) is the trade association that represents companies in the $827 billion equipment finance sector, which includes financial services companies and manufacturers engaged in financing capital goods. ELFA members are the driving force behind the growth in the commercial equipment finance market and contribute to capital formation in the U.S. and abroad. Its more than 575 members include independent and captive leasing and finance companies, banks, financial services corporations, broker/packagers and investment banks, as well as manufacturers and service providers. ELFA has been equipping business for success for more than 50 years. For more information, please visit www.elfaonline.org.
Follow ELFA: Twitter: @ELFAonline LinkedIn: http://www.linkedin.com/groups?gid=89692 Facebook: https://www.facebook.com/ELFApage
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CONTACT: Media/Press:
ELFA
Amy Vogt, Vice President, Communications and Marketing
202-238-3438
avogt@elfaonline.org
KEYWORD: UNITED STATES NORTH AMERICA DISTRICT OF COLUMBIA
INDUSTRY KEYWORD: MANUFACTURING OTHER MANUFACTURING PROFESSIONAL SERVICES BANKING FINANCE CONSTRUCTION & PROPERTY OTHER CONSTRUCTION & PROPERTY
SOURCE: Equipment Leasing and Finance Association
Copyright Business Wire 2014
PUB: 04/23/2014 08:00 AM/DISC: 04/23/2014 08:00 AM
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