New business volume among a group of 25 equipment finance companies dropped 17 percent in May when compared to April numbers. The Equipment Leasing and Finance Association’s (ELFA) Monthly Leasing and Finance Index (MLFI-25) showed new business volume for May was $8.1 billion, down 17 percent from $9.8 billion in April. Year-to-date, cumulative new business volume was up nearly 7 percent compared to 2020, and May’s number was 20 percent higher than in May 2020.
Credit approvals totaled 77.4 percent, up from 76.3 percent in April.
Separately, the Equipment Leasing & Finance Foundation’s Monthly Confidence Index (MCI-EFI) in June is 71.3, steady with the May index of 72.1.
“Solid May new business volume growth, put in perspective, compares favorably to a low y-o-y base when the pandemic was raging at the beginning of the summer last year,” said ELFA president/CEO Ralph Petta, in a prepared statement. “While overall industry performance is relatively strong during the first half of this year, even more robust demand for financing is being constrained by supply chain shortages in several economic subsectors. And, with [C]ovid-related payment modifications resolved for the most part, ELFA members report their portfolios performing well.”
Jeffrey Walker, CEO of CIMC Capital, said in a statement:
“Customer requests for loans and finance leases are strong with demand for our manufactured products (trailers and containers) at all-time highs. Economic conditions for transportation equipment are robust, driving customers to expand their fleets. Current headwinds continue to be supply chain shortages and shipping delays. The trend in these conditions and headwinds seem likely to continue for the foreseeable future.”
The MLFI-25 reports economic activity from 25 companies representing a cross section of the $900 billion equipment finance sector.
Source: ELFA
