ELFA’s MLFI-25 new business volume increases by USD 10.2 billion in 2022


That Equipment Leasing and Finance Association Monthly Leasing and Finance Index (MLFI-25), revealed that its September 2021 new business volume was $10.2 billion, up 11% year-on-year from September 2021 new business volume. Volume rose 16% from $8.8 billion in August. Since the beginning of the year, the cumulative new business volume has increased by almost 6% compared to 2021.

Accounts receivable over 30 days were at 1.5%, unchanged from the previous month and below 1.6% for the same period in 2021. Charge-offs at 0.17%, unchanged from the previous month and below 0.35% in the same period last year.

Loan approvals were 77.3%, up from 75.2% in August. Total headcount at equipment financiers decreased 2.4% year over year.

Separately, the Equipment Leasing & Finance Foundation’s Monthly Confidence Index (MCI-EFI) stands at 45 for October, down from September’s index of 48.7.

“Third-quarter new business volume in the equipment finance industry, at over $1 trillion, is exceptionally strong and provides new evidence that the economic contraction that many economists have been predicting has not yet materialized,” said Ralph Petta, CEO and President of ELFA. “Another data point supporting this relatively benign economic scenario is extremely low arrears, suggesting that end-users of commercial devices continue to make timely payments to their financial service providers.”

“Despite ongoing supply chain challenges, inflationary pressures and rising interest rates, the industry and our financial company continue to grow,” said Hollis Bufferd, CEO of Star Hill Financial. “Like our peers, we continue to have expectations for the 2022 balance sheet as end-users plan for year-end capital acquisitions. Write-offs and arrears remain at historic lows. The likelihood of continued Fed rate hikes on the horizon creates some uncertainty, but we see increased demand for fixed rate leases and loans to support our customers’ capital expenditures. With a view to global economic turmoil, I am cautiously optimistic.”


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