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Equipment Leasing and Finance Index Up | Construction News

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 $903-billion equipment finance sector, showed overall new business volume for March was $8.9 billion, up 25% from new business volume in March 2014.

March 2015 volume was up 46% from $6.1 billion in February 2015. Year to date, cumulative new business volume increased 17%, compared to 2014. 

Receivables over 30 days were 1.2%, up from 1.1% the previous month and from 1.0% the same period in 2014.  Charge-offs were at an all-time low of 0.2% for the 13th consecutive month.

Credit approvals totaled 78.7% in March, up from 78.1% in February.  Total headcount for equipment finance companies was up 3.9%, year over year.

ELFA President and CEO William G. Sutton, CAE, said: “Equipment finance companies in many industry sectors are reporting a robust first quarter of the year. The March new business volume is indicative of strong capital spending, influenced by businesses taking advantage of continued low interest rates, perhaps in anticipation of reported tightening of monetary policy by the Fed. Credit quality metrics are mixed, with delinquencies edging upward counterbalanced by monthly losses remaining at historic lows.”

Bradley R. Brolsma, President, Merchants Capital Resources, Inc., said, “While there is a general sense within our industry that deal flow is not where it could be, the 17% growth in first quarter new business certainly doesn’t seem to bear that out.  Clearly, industry numbers are outpacing 2015 expectations of a 4 to 5% increase in annual expenditures for equipment and software and that’s nothing but good news for our industry. That said, the rather dismal global economic numbers still point to the need for cautiousness in assessments of overall credit conditions going forward.  The marketplace doesn’t need any bad news or surprises right now.”

ELFA MLFI-25 Participants

BancorpSouth Equipment Finance

Bank of America

Bank of the West

BB&T Bank

BMO Harris Equipment Finance

Canon Financial Services

Caterpillar Financial Services

CIT

DLL

Dell Financial Services

Direct Capital Corporation

EverBank Commercial Finance

Fifth Third Equipment Finance

First American Equipment Finance, a City National Bank Company

GreatAmerica Financial Services

Hitachi Credit America

HP Financial Services

Huntington Equipment Finance

John Deere Financial

Key Equipment Finance

LEAF Commercial Capital

M&T Bank

Marlin Leasing

Merchants Capital

PNC Equipment Finance

RBS Asset Finance

SG Equipment Finance

Siemens Financial Services

Stearns Bank

SunTrust Equipment Finance Group

Susquehanna Commercial Finance

TCF Equipment Finance

US Bancorp Equipment Finance

Verizon Capital

Volvo Financial Services

Wells Fargo Equipment Finance

 

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