Equipment leasing business down, but confidence rising
The ELFA's monthly report shows overall business volume is down 3% YOY, but confidence is rising in spite of potential COVID-19 challenges ahead.
The Equipment Leasing and Finance Association’s (ELFA) Monthly Leasing and Finance Index (MLFI-25), showed overall new business volume for July was $9.1 billion, which is 3% down year-over-year from new business volume in July 2019. Volume was up 3% month-to-month from $8.9 billion in June. YTD, cumulative new business volume was down 1% compared to 2019.
Receivables over 30 days were 2.40%, down from 2.60% the previous month and up from 2% the same period in 2019. Charge-offs were 0.73%, up from 0.71% the previous month, and up from 0.37% in the year-earlier period. Separately, the Equipment Leasing & Finance Foundation’s Monthly Confidence Index (MCI-EFI) in August is 48.4, an increase from the July index of 45.3.
ELFA president and CEO Ralph Petta said, “The July data gives voice to anecdotal evidence from ELFA members that, in the face of rising COVID-19 cases in some areas of the country, equipment demand remains solid in certain market sectors and weak in others. Some middle market businesses and corporate customers continue to operate in pre-pandemic form. Low interest rates, a gravity-defying equities market, and abundant liquidity all serve to provide fuel for a strong housing market; however, too many small businesses and the hospitality and restaurant sectors are struggling to turn a profit and keep their people employed. This is not sustainable long-term, and the hope is that, as we move into the third quarter, economic growth turns a corner and Americans return to work.”
Do you have experience and expertise with the topics mentioned in this content? You should consider contributing to our WTWH Media editorial team and getting the recognition you and your company deserve. Click here to start this process.