The Equipment Leasing and Finance Association’s (ELFA) Monthly Leasing and Finance Index (MLFI-25) showed their overall new business volume for December was $12.9 billion, up 2% year-over-year from new business volume in December 2018.
Volume was up 65% month-to-month from $7.8 billion in November in a typical end-of-year spike. Cumulative new business volume for 2019 was up 5% from 2018.
Receivables over 30 days were 2.20%, up from 1.80% the previous month and up from 1.70% the same period in 2018. Charge-offs were 0.51%, up from 0.43% the previous month, and down from 0.55% in the year-earlier period.
Credit approvals totaled 77.1%, up from 75.7% in November. Total headcount for equipment finance companies was down 3.3% year-over-year.
Separately, the Equipment Leasing & Finance Foundation’s Monthly Confidence Index (MCI-EFI) in January is 59.9, an increase from the December index of 56.2.
“Equipment finance companies ended the year with steady 5% cumulative new business growth,” said ELFA President and CEO Ralph Petta said. “However, some ELFA member organizations are seeing slightly elevated levels of stress in their portfolios, corroborating evidence that soft patches can be found in some sectors of the U.S. economy.”