The Equipment Leasing and Finance Association’s (ELFA) Monthly Leasing and Finance Index (MLFI-25) showed overall new business volume for May was $5.6 billion, up 30 percent from volume of $4.3 billion in the same period in 2010. Compared against April volume, May volume increased by 10 percent. Year to date, new business volume is up 27 percent over last year.
Credit quality continues to improve. Receivables over 30 days decreased 12 percent to 2.9 percent in May from 3.3 percent in April, and declined by 28 percent compared to the same period in 2010. Charge-offs remained unchanged at 0.8 percent in May from the previous month, and decreased by 51 percent from the same period in 2010.
Credit standards remained unchanged in May from the previous month at 76 percent. Sixty-eight percent of participating organizations reported submitting more transactions for approval during the month,
Finally, total headcount for equipment finance companies in May decreased two percent and was down one percent year-over-year. Supplemental data shows that the construction and trucking sectors continued to lead the underperforming sectors.
“Directionally, there is good news both in the amount of new business generated during the period and the rebound in credit quality, ELFA President and CEO William G. Sutton, CAE, said.