New business in the equipment finance sector totaled $7.4 billion in February, down 8 percent from January, but up 9 percent compared to February 2020. Cumulative new business volume is down 4 percent compared to 2020.
The data are part of the Equipment Leasing and Finance Association’s (ELFA) Monthly Leasing and Finance Index (MLFI-25) . The association also reported that credit approvals totaled 76.8 percent, up from 76.2 percent in January.
Earlier this month, the Equipment Leasing & Finance Foundation’s Monthly Confidence Index (MCI-EFI) for March was released. At 67.7, it was an increase from the February index of 64.4, and the highest level since April 2018.
“February metrics show healthy new business growth compared to the same period pre-pandemic last year,” said ELFA president/CEO Ralph Petta in a prepared statement. “As vaccine distribution picks up across the country, labor markets improve and interest rates remain low, the U.S. economy will only improve as we move into Q2. Business confidence is at an historic high as measured by our Foundation’s Monthly Confidence Index (MCI). All this bodes well for business growth and expansion and the accompanying accelerating demand for productive equipment.”
Said Christopher Johnson, president, financial services for Pitney Bowes, in a statement:
“It’s encouraging to see new business volume and confidence levels increase as organizations continue to deal with the financial impact of the pandemic. The results should provide a glimmer of hope to small- and lower middle-market businesses in particular—they’ve been hit the hardest and have found it much more difficult to secure capital than larger companies. The pandemic may have been a setback to many of these businesses, but they are poised to come out of the crisis stronger as they are well positioned to capture the upswing in growth. While we did see an initial uptick in delinquency, in line with the market, our portfolio has performed well through the pandemic. Now is the time for the lending community to step up and support these businesses who are an important segment of our economy. Pitney Bowes has over 100 years of experience supporting our 750,000 small business clients. We have a robust history of lending, we have access to capital, and we have been firm in our commitment to Main Street.”
Source: ELFA
