ELFA Economic Activity Survey shows new business volume growth.

Press Release Summary:



ELFA's Monthly Leasing and Finance Index (MLFI-25), reporting economic activity from 25 companies, showed overall new business volume for September up 21% from September 2013, up 31% month over month, and up 8% year to date compared to 2013. Receivables over 30 days decreased from previous month to 1.0% and were up slightly from .09% for same period in 2013. Charge-offs remained unchanged at 0.2%, and credit approvals were relatively unchanged at 79.7%.



Original Press Release:



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



September New Business Volume Up 21 Percent Year-over-year, Up 31 Percent Month-to-month, Up 8 Percent Year-to-date



Washington, DC — 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 $827 billion equipment finance sector, showed their overall new business volume for September was $9.4 billion, up 21 percent from new business volume in September 2013. Month over month, new business volume was up 31 percent from August. Year to date, cumulative new business volume increased 8 percent compared to 2013.



Receivables over 30 days decreased from the previous month to 1.0 percent, and were up slightly from .09 percent in the same period in 2013.  Charge-offs were unchanged for the sixth consecutive month at an all-time low of 0.2 percent.



Credit approvals totaled 79.7 percent in September, relatively unchanged from the previous month.  Total headcount for equipment finance companies was up 1.1 percent year over year.



Separately, the Equipment Leasing & Finance Foundation's Monthly Confidence Index (MCI-EFI) for October is 60.4, slightly better than the September index of 60.2, with survey participants indicating increasing or consistent demand tempered by U.S. economic concerns



ELFA President and CEO William G. Sutton, CAE, said: “All MLFI-25 performance metrics for September indicate a favorable environment for business investment. Strong originations and solid portfolio performance, together with a slight uptick in hiring, all point to a robust equipment finance sector as we move into the final quarter of the year. We will keep our eye on these positive indicators as the U.S. economy continues to react to geopolitical events, a worrisome global economic outlook and volatile U.S. equity markets.”



William Henak, President and Chief Executive Officer, TCF Equipment Finance, said, "Continued growth in September quarter-end new business volume was both expected and encouraging based on the year-to-date momentum and historically strong performance for this period in the equipment finance sector. The decrease in portfolio delinquency levels back to the 1.0 percent level in September was a positive sign, yet the 1.3 percent spike in August was a good reminder that strong credit discipline remains important in this competitive environment as everyone looks to grow portfolios. Concern for the rest of the year remains due to the growing number of negative news headlines, volatile capital and equity markets, unresolved tax extender legislation, and the potential for Federal Reserve actions that may influence interest rates. All of these factors could negatively impact new business volume in the 4th quarter, which is historically strong.  Despite these concerns, this year is expected to finish strong. Our industry has always been very resilient and found ways to turn uncertainty into opportunity."



About the ELFA’s MLFI-25

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



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



MLFI-25 Methodology

The ELFA produces the MLFI-25 survey to help member organizations achieve competitive advantage by providing them with leading-edge research and benchmarking information to support strategic business decision making.



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



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



ELFA MLFI-25 Participants



BancorpSouth Equipment Finance

Bank of America

Bank of the West

BB&T Bank

BMO Harris Equipment Finance

Canon Financial Services

Caterpillar Financial Services

CIT

De Lage Landen Financial Services

Dell Financial Services

Direct Capital Corporation

EverBank Commercial Finance

Fifth Third Equipment Finance

First American Equipment Finance, a City National Bank Company

GreatAmerica Financial Services

Hitachi Credit America

HP Financial Services

Huntington Equipment Finance

John Deere Financial

Key Equipment Finance

LEAF Commercial Capital

M&T Bank

Marlin Leasing

Merchants Capital

PNC Equipment Finance

RBS Asset Finance

SG Equipment Finance

Siemens Financial Services

Stearns Bank

Suntrust

Susquehanna Commercial Finance

TCF Equipment Finance

US Bancorp Equipment Finance

Verizon Capital

Volvo Financial Services

Wells Fargo Equipment Finance



About the ELFA

The Equipment Leasing and Finance Association (ELFA) is the trade association that represents companies in the $827 billion 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 580 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. For more information, please visit www.elfaonline.org.



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ELFA is the premier source for statistics and analyses concerning the equipment finance sector. Please visit http://www.elfaonline.org/Research/  for additional information.



The Equipment Leasing & Finance Foundation is the non-profit affiliate to the Equipment Leasing and Finance Association, providing future-focused research to the equipment finance industry. For more information please visit the website at www.leasefoundation.org



Contact Name: Amy Vogt

E-mail: avogt@elfaonline.org

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