Market Overview

Equipment Leasing and Finance Association's Survey of Economic Activity: Monthly Leasing and Finance Index


January New Business Volume Up 10 Percent Year-over-year

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 $6.9 billion, up 10 percent year-over-year from
new business volume in January 2017. Volume was down 46 percent
month-to-month from $12.8 billion in December, following the typical
end-of-quarter, end-of-year spike in new business activity.

Receivables over 30 days were 1.90 percent, up from 1.50 percent the
previous month and up from 1.70 percent the same period in 2017.
Charge-offs were 0.34 percent, down from 0.48 percent the previous
month, and down from 0.43 percent in the year-earlier period.

Credit approvals totaled 76.9 percent in January, down from 77.6 percent
in December. Total headcount for equipment finance companies was up 1.9
percent year over year. Previously, headcount was elevated due to
acquisition activity at an MLFI reporting company.

Separately, the Equipment Leasing & Finance Foundation's Monthly
Confidence Index (MCI-EFI) in February is 73.2, easing from 75.3 in
January, which was an all-time high level for the index.

President and CEO Ralph Petta
said, "A confident commercial
sector of the U.S. economy showed itself with double-digit growth in the
dollar volume of financed equipment for the month of January. Despite a
spike in delinquencies, which bears a watchful eye for signs of
deterioration in credit markets in the coming months, the new year gets
off to a strong start for the equipment finance industry. Business
owners continue to expand their operations and acquire productive
assets, even as interest rates edge up ever so slightly and the Fed is
poised to cool an overheated economy."

Cress, Vice President and General Manager, Stryker Flex Financial
said, "The equipment finance industry enjoyed a great year in 2017
and is maintaining that momentum through January as evidenced by this
month's MLFI. Optimism continues to be fueled by tax reform and
favorable interest rates. Potential borrowers planning for the upcoming
lease accounting changes in 2019 have spurred a wave of innovation
towards consumption models and managed services agreements in lieu of
traditional financing products. Barring larger macroeconomic events, all
of this should result in a dynamic and growing equipment finance market
in 2018."

About the ELFA's MLFI-25

The MLFI-25 is the only index that reflects capex—the
volume of commercial equipment financed in the U.S.—and is released as a
complementary economic indicator the day before the U.S. Department
of Commerce
releases the durable
goods report

To read a detailed description and methodology of the MLFI-25, visit

About the ELFA

The 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
more than 575 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 50 years. For more information, please visit

Follow ELFA:
Twitter: @ELFAonline

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