{"id":10837,"date":"2014-12-23T14:31:24","date_gmt":"2014-12-23T19:31:24","guid":{"rendered":"http:\/\/www.enxmag.com\/twii\/?p=10837"},"modified":"2014-12-23T14:31:24","modified_gmt":"2014-12-23T19:31:24","slug":"equipment-leasing-and-finance-associations-survey-of-economic-activity-monthly-leasing-and-finance-index-2","status":"publish","type":"post","link":"https:\/\/www.enxmag.com\/twii\/news\/2014\/12\/equipment-leasing-and-finance-associations-survey-of-economic-activity-monthly-leasing-and-finance-index-2\/","title":{"rendered":"Equipment Leasing and Finance Association\u2019s Survey of Economic Activity: Monthly Leasing and Finance Index"},"content":{"rendered":"

November New Business Volume Up 6 Percent Year-to-date, Down 8 Percent Year-over-year, Down 18\u00a0Percent Month-to-month\u00a0<\/em><\/p>\n

Washington, DC, December 19, 2014\u2014<\/em> The Equipment Leasing and Finance Association\u2019s (ELFA)\u00a0Monthly Leasing and Finance Index (MLFI-25), which reports economic activity from 25 companies\u00a0representing a cross section of the $903 billion equipment finance sector, showed their overall new\u00a0business volume for November was $6.8 billion, down 8 percent from new business volume in\u00a0November 2013. Month over month, new business volume was down 18 percent from October. Year to\u00a0date, cumulative new business volume increased 6 percent compared to 2013.<\/p>\n

Receivables over 30 days decreased from the previous month to 1 percent, and were up from 0.9\u00a0percent in the same period in 2013.\u00a0 Charge-offs were unchanged for the eighth consecutive month at\u00a0an all-time low of 0.2 percent.<\/p>\n

Credit approvals totaled 79.1 percent in November, an increase from 78.3 percent the previous month. \u00a0Total headcount for equipment finance companies was up 0.7 percent year over year.\u00a0Separately, the Equipment Leasing & Finance Foundation’s Monthly Confidence Index (MCI-EFI) for\u00a0December is 63.4, steady with the November index of 64.2. ELFA President and CEO William G. Sutton, CAE, said: \u201cThe equipment finance sector has showed the\u00a0kind of volatility experienced in other financial markets during this quarter. While new business volume\u00a0dipped in November, member organizations\u2019 portfolios continue to perform well, indicating a healthy\u00a0business sector. Liquidity continues to be plentiful, making for a hyper-competitive marketplace.\u00a0Continued favorable pricing in the sector should provide a healthy environment for businesses\u2014small\u00a0and large\u2014to make equipment investment decisions so necessary to run their business operations, add\u00a0employees to their payrolls, and contribute to the overall health of the U.S. economy.\u201d Scott Rafkin, President, Volvo Financial Services, said, \u201cThe MLFI-25 performance metrics for November\u00a0indicate a favorable business environment. Strong originations and solid portfolio performance,\u00a0together with stable customer delinquencies, all point to a continued good performance in the\u00a0equipment finance sector as we close 2014 and enter into 2015. Volvo Financial Services is benefiting\u00a0from a generally steady economic recovery in most of our global markets, highlighted by a very strong\u00a0North America. Overall, I\u2019m pleased with how the equipment finance industry performed this month\u00a0and thus far in 2014.\u201d<\/p>\n

About the ELFA\u2019s MLFI-25\u00a0<\/strong><\/p>\n

The MLFI-25 is the only index that reflects capex, or the volume of commercial equipment financed in\u00a0the U.S. The MLFI-25 is released globally at 8 a.m. Eastern time from Washington, D.C., each month on\u00a0the day before the U.S. Department of Commerce releases the durable goods report. The MLFI-25 is a\u00a0financial indicator that complements the durable goods report and other economic indexes, including\u00a0the Institute for Supply Management Index, which reports economic activity in the manufacturing\u00a0sector. Together with the MLFI-25 these reports provide a complete view of the status of productive\u00a0assets in the U.S. economy:\u00a0 equipment produced, acquired and financed.<\/p>\n

The MLFI-25 is a time series that reflects two years of business activity for the 25 companies currently\u00a0participating in the survey. The latest MLFI-25, including methodology and participants is available\u00a0below and also at http:\/\/www.elfaonline.org\/Research\/MLFI\/<\/p>\n

MLFI-25 Methodology<\/strong><\/p>\n

The ELFA produces the MLFI-25 survey to help member organizations achieve competitive advantage by\u00a0providing them with leading-edge research and benchmarking information to support strategic business\u00a0decision making.<\/p>\n

The MLFI-25 is a barometer of the trends in U.S. capital equipment investment. Five components are\u00a0included in the survey: new business volume (originations), aging of receivables, charge-offs, credit\u00a0approval ratios, (approved vs. submitted) and headcount for the equipment finance business.<\/p>\n

 <\/p>\n

The MLFI-25 measures monthly commercial equipment lease and loan activity as reported by\u00a0participating ELFA member equipment finance companies representing a cross section of the equipment\u00a0finance sector, including small ticket, middle-market, large ticket, bank, captive and independent leasing\u00a0and finance companies. Based on hard survey data, the responses mirror the economic activity of the\u00a0broader equipment finance sector and current business conditions nationally.<\/p>\n

ELFA MLFI-25 Participants<\/strong><\/p>\n