Questions? Give Us a Call
(678) 940-6433

ELFA Survey: Monthly Leasing & Finance Index

ELFA Survey: Monthly Leasing & Finance Index

Keep up with the latest from CCR-Mag.com

Fill out the form Below

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 $1 trillion equipment finance sector, showed their overall new business volume for January was $9.3 billion, up 6% year-over-year from new business volume in January 2023. Volume was down 26% from $12.5 billion in December following the typical end-of-quarter, end-of-year spike in new business activity.

Receivables over 30 days were 2.3%, unchanged from the previous month and up from 1.9% in the same period in 2023. Charge-offs were 0.5%, up from 0.4% the previous month and up from 0.3% in the year-earlier period.

Credit approvals totaled 76%, up from 75% in December. Total headcount for equipment finance companies was up 1.4% year-over-year.

Separately, the Equipment Leasing & Finance Foundation’s Monthly Confidence Index (MCI-EFI) in February is 51.7, an increase from the January index of 48.6.

ELFA President and CEO Leigh Lytle said, “The optimism I expressed in last month’s MLFI continues as 2024 gets off to a strong start with solid new business volume and increased industry confidence. It’s especially encouraging to kick off in positive territory since equipment investment—the lifeblood of the equipment finance industry—is forecast to pick up in the second half of the year. Credit quality bears monitoring since delinquencies and charge-offs, in particular, remain elevated year over year.”

Bobby Campbell, SVP, Managing Director, Operations & Strategic Development, Flagstar Financial & Leasing LLCsaid, “Our equipment finance industry has kicked off 2024 with a stronger launch than a year before on the heels of an extremely active fourth quarter. Many finance companies remain cautious within certain segments of the trucking industry, though credit concerns and delinquency are beginning to level off with hopes of a near-term positive inflection. With several bank finance players facing ongoing liquidity challenges, strong independents and captives should continue to take advantage of capturing additional market share in the months ahead.”

About ELFA’s MLFI-25

The MLFI-25 is the only near-real-time index that reflects capex, or the volume of commercial equipment financed in the U.S. The MLFI-25 is released globally at 8 a.m. Eastern time from Washington, D.C., each month on the day before the U.S. Department of Commerce releases the durable goods report. The MLFI-25 is a financial indicator that complements the durable goods report and other economic indexes, including the Institute for Supply Management Index, which reports economic activity in the manufacturing sector. Together with the MLFI-25 these reports provide a complete view of the status of productive assets in the U.S. economy: equipment produced, acquired and financed.

The MLFI-25 is a time series that reflects two years of business activity for the 25 companies currently participating in the survey. The latest MLFI-25, including methodology and participants, is available at www.elfaonline.org/knowledge-hub/mlfi-25-monthly-leasing-and-finance-index.

The MLFI-25 is part of the Knowledge Hub, the source for business intelligence in the equipment finance industry. Visit the hub www.elfaonline.org/KnowledgeHub.

MLFI-25 MethodologyELFA produces the MLFI-25 survey to help member organizations achieve competitive advantage by providing them with leading-edge research and benchmarking information to support strategic business decision making.

The MLFI-25 is a barometer of the trends in U.S. capital equipment investment. Five components are included in the survey: new business volume (originations), aging of receivables, charge-offs, credit approval ratios, (approved vs. submitted) and headcount for the equipment finance business.

The MLFI-25 measures monthly commercial equipment lease and loan activity as reported by participating ELFA member equipment finance companies representing a cross section of the equipment finance sector, including small ticket, middle-market, large ticket, bank, captive and independent leasing and finance companies. Based on hard survey data, the responses mirror the economic activity of the broader equipment finance sector and current business conditions nationally.

About ELFAThe Equipment Leasing and Finance Association (ELFA) is the trade association that represents companies in the $1 trillion equipment finance sector, which includes financial services companies and manufacturers engaged in financing capital goods. ELFA members are the driving force behind the growth in the commercial equipment finance market and contribute to capital formation in the U.S. and abroad. Its 580 members include independent and captive leasing and finance companies, banks, financial services corporations, broker/packagers and investment banks, as well as manufacturers and service providers. ELFA has been equipping business for success for more than 60 years. For more information, please visit www.elfaonline.org.

Follow ELFA:X: @ELFAonlineLinkedIn: https://www.linkedin.com/groups/89692/

ELFA is the premier source for statistics and analyses concerning the equipment finance sector. Please visit www.elfaonline.org/knowledge-hub/knowledge-hub-home for additional information.

Events

Read more BELOW

 

The 2024 virtual Men’s Round Table will be held Q4, 2024, date TBD.

2024 Virtual Men’s Round Tables

2023 Virtual Men’s Round Table was held on November 7th, 2023 via Zoom.


 

2024 Virtual Women’s Round Table

2023 Women’s Round Table #1 was held on October 20th, 2023 via Zoom

News
Supplements/Podcast
See Website for Details

This content (including text, artwork, graphics, photography, and video) was provided by the third party(ies) as referenced above. Any rights or other content questions or inquiries should be directed such third-party provider(s).

Receive the CCR 2024 Idustry Report

Get ahead of your Competitors with CCR's FREE Industry Insider's Report 2024!

Always stay two steps ahead of your Competitors. Stay informed with the latest in the Industry. 

This site uses cookies to ensure that you get the best user experience. By choosing “Accept” you acknowledge this and that ccr-mag.com operates under the Fair Use Act. Furthermore, Changing privacy laws now require website visitors from EEA based countries to provide consent in order to use personalized advertising or data modeling with either Google Ads & Analytics. Find out more on the Privacy Policy & Terms of Use Page