The Equipment Leasing and Finance Association’s (ELFA) Monthly Leasing and Finance Index (MLFI-25), which reports economic activity from 25 companies representing a cross section of the $900 billion equipment finance sector, showed their overall new business volume for November was $7.3 billion, down 7% year-over-year from new business volume in November 2019. Volume was down 21% month-to-month from $9.2 billion in October. Year-to-date, cumulative new business volume was down almost 6% compared to 2019.
Receivables over 30 days were 2.30%, up from 2.20% the previous month and up from 1.80% the same period in 2019. Charge-offs were 0.61%, a slight uptick from 0.60% the previous month and up from 0.43% in the year-earlier period.
Credit approvals totaled 70.4%, down from 72.3% in October. Total headcount for equipment finance companies was down 7.0% year-over-year.
Separately, the Equipment Leasing & Finance Foundation’s Monthly Confidence Index (MCI-EFI) in December is 59.7, up from the November index of 56.1.
“With a tumultuous election season behind us, the equipment finance industry reports slightly lower volume totals for the month,” said ELFA President and CEO Ralph Petta. “The effect of the COVID-19 pandemic on the U.S. economy … will continue to take a toll on some members’ business operations. But, overall, the broader industry is performing well, with delinquencies and losses in very acceptable ranges.”