Month-over-month, new business volume was down 1 percent from September. Year to date, cumulative new business volume increased 5 percent compared to 2012.
The index, which reports economic activity from 25 companies representing a cross section of the $827 billion equipment finance sector, showed that receivables over 30 days were at 1.5 percent in October, unchanged from September. Delinquencies declined from 1.7 percent in the same period in 2012. Charge-offs were unchanged from the previous two months at 0.4 percent, and only slightly higher than the all-time low of 0.3 percent.
Credit approvals totaled 77.6 percent in October, up slightly from 77.3 percent the previous month. Eighty-two percent of participating organizations reported submitting more transactions for approval during October, a spike from 56 percent in September.
Finally, total headcount for equipment finance companies was up 1 percent year over year.
Separately, the Equipment Leasing & Finance Foundation's Monthly Confidence Index (MCI-EFI) for November is 56.9, an increase from the October index of 54.0, demonstrating an overall steady industry outlook despite continuing concerns about the U.S. economy and the negative impact of federal government fiscal policies.
ELFA President and CEO William G. Sutton, CAE, said: “As we enter the final quarter of the year, the equipment finance industry continues to perform well, illustrated by healthy new business generation and solid credit quality metrics. We remain cautiously optimistic that business demand for capital equipment will continue unabated into the fourth quarter, which is a typically strong period for the industry. We hope that the ongoing and unresolved debate over fiscal policy will not act as a drag on the overall economy and the industry as we end 2013 and enter a new year.”