The Equipment Leasing and Finance Association’s (ELFA) Monthly Leasing and Finance Index (MLFI-25) showed their overall new business volume for May was $6.7 billion, down 26% year-over-year from new business volume in May 2019. Volume was down 18% month-to-month from $8.2 billion in April. Year-to-date, cumulative new business volume was up 2% compared to 2019.
Receivables over 30 days were 4.30%, up from 3.00% the previous month and up from 1.70% the same period in 2019. Charge-offs were 0.61%, down from 0.80% the previous month, and up from 0.46% in the year-earlier period.
Credit approvals totaled 68.1%, down from 71.7% in April. Total headcount for equipment finance companies was down 2.2% year-over-year.
Separately, the Equipment Leasing & Finance Foundation’s Monthly Confidence Index (MCI-EFI) rose to 45.8 in June, up from 25.8 in May.
“The downturn in the economy precipitated by the COVID-19 pandemic crisis is responsible for new business softening in the equipment finance space during the month of May,” said ELFA President and CEO Ralph Petta. “This is evident in market segments serving customers in the construction, hotel, tourism, leisure and food service industries, in particular.”