Reflecting the improving US economy, the Equipment Leasing and Finance Association’s (ELFA) Monthly Leasing and Finance Index (MLFI-25) showed overall new business volume for January was $6.7 billion, up 12% from new business volume in January 2014. Volume was down 48% from December, following the typical end-of-quarter, end-of-year spike in new business activity.
Receivables over 30 days were 1.1%, up slightly from 1% the previous month and from 1% the same period in 2014. Charge-offs were unchanged for the tenth consecutive month at an all-time low of 0.2%. Credit approvals totaled 78.6% in January, unchanged from December. ELFA president and CEO William G. Sutton said, “To begin the year, equipment finance activity picked up where it left off for most of 2014. New business volume continues to grow and portfolios are performing well, despite a slight uptick in receivables over 30 days. Interest rates should remain low–at least into the spring and, perhaps, later–as the Fed keeps a close eye on prospects for inflation and the improving labor markets. As long as the U.S. economy continues to perform, and absent any geopolitical or other external shocks to the system, we are hopeful that these factors will help promote a favorable climate for continued investment by U.S. businesses in capital equipment in 2015 and beyond.”