Equipment leasing, finance business volume up 5% in 2017

Jan. 29, 2018
Equipment leasing, finance business volume up 5% in 2017

Cumulative new business volume for 2017 was up 5 percent from 2016, according to the Equipment Leasing and Finance Association’s (ELFA) Monthly Leasing and Finance Index.

Overall new business volume for December was $12.8 billion, up 6 percent year-over-year from new business volume in December 2016. Volume was up 71 percent month-to-month from $7.5 billion in November in a typical end-of-year spike.

Receivables over 30 days were 1.50 percent, unchanged from the previous month and up from 1.40 percent the same period in 2016. Charge-offs were 0.48 percent, up from 0.42 percent the previous month, and up from 0.42 percent in the year-earlier period.

Credit approvals totaled 77.6 percent in December, up from 73.6 percent in November. Total headcount for equipment finance companies was up 15.1 percent year over year, largely attributable to continued acquisition activity at an MLFI reporting company.

Separately, the Equipment Leasing & Finance Foundation’s Monthly Confidence Index (MCI-EFI) in January is at an all-time high of 75.3, up from 69.4 in December.

ELFA President and CEO Ralph Petta said, “December new business volume registered the typical end-of-quarter, end-of-year spike as member companies scrambled to close out the year. While 2017 was a good year, overall, for the equipment finance industry, most industry observers look for even stronger business activity in 2018. The reasons for this optimistic outlook? A continued healthy and growing economy, an abundance of liquidity, strong capex demand buoyed by recent tax law changes, and a sense of confidence by the business community not seen since just after the 2016 election. Absent a wild card event or external shock of some sort, we are bullish about 2018.”