[ad_1]
WASHINGTON, Dec. 21, 2020 (GLOBE NEWSWIRE) – The Association for Equipment Leasing and Financing (ELFA) Monthly leasing and financing index (MLFI-25), which reports the economies of 25 companies representing a cross section of the $ 900 billion device finance sector, showed their total new business for November was down 21 percent from $ 9.2 billion in October. The cumulative volume of new business has fallen by almost 6 percent since the beginning of the year compared to 2019.
Receivables over 30 days were 2.30 percent compared to 2.20 percent in the previous month and 1.80 percent in the same period of 2019. The write-offs were 0.61 percent, a slight increase of 0.60 percent in the previous month and 0.43 Percent in the year-earlier period.
Loan approvals were 70.4 percent, up from 72.3 percent in October. The workforce of the equipment finance companies decreased by 7.0 percent compared to the previous year.
Regardless of this, the monthly confidence index (MCI-EFI) of the Equipment Leasing & Finance Foundation is 59.7 in December compared to the November index of 56.1.
ELFA President and CEO Ralph Petta said: “With a tumultuous election season behind us, the equipment finance industry reports slightly lower total volumes for the month. The impact of the COVID-19 pandemic on the U.S. economy has certainly and will continue to have impacted the operations of some members. But overall the broader industry is doing well, with defaults and losses in very acceptable areas. And the introduction of vaccines should instill a sense of optimism and hope among consumers and businesses alike, which bodes well for our industry in the months ahead. “
Rick Matte, President and Chief Commercial Officer. Encina equipment financing, GMBH, said, “As we can see from the data in this monthly report, COVID-19 continues to disrupt the equipment finance market. We have seen some industries doing very well while others have essentially fallen off a cliff. Capital expenditures have been drastically cut by most companies to save money or to reassess their future growth prospects. Now that the elections are behind us, combined with the delivery of two FDA approved vaccinations, market sentiment has begun to change despite increasing COVID cases.
About ELFA’s MLFI-25
The MLFI-25 is the only index that reflects capital expenditures, or the volume of commercial equipment funded in the US, the releases Consumer 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 Indexreporting economic activity in manufacturing. Together with the MLFI-25, these reports provide a complete picture of the status of manufacturing facilities in the US economy: equipment produced, purchased, and financed.
The MLFI-25 is a time series that reflects the two years of business activity of the 25 companies currently taking part in the survey. The latest MLFI-25, including methodology and participants, is available at www.elfaonline.org/Data/MLFI/.
MLFI-25 methodology
ELFA creates the MLFI-25 survey to help affiliates gain competitive advantage by providing them with cutting edge research and benchmarking information to aid in strategic business decisions.
The MLFI-25 is a barometer of trends in US capital investment. Five components are included in the survey: new business volume (origin), aging of receivables, write-offs, loan approval rates (approved vs. submitted) and headcount for the machine finance business.
The MLFI-25 measures the monthly commercial equipment leasing and credit activity reported by participating ELFA member companies to finance equipment representing a cross section of the equipment finance sector, including small-ticket, middle-market, large-ticket , Banking, captive and independent leasing and finance companies. Based on tough survey data, the responses reflect the economic activity of the broader equipment finance sector and current business conditions at the national level.
About ELFA
The Equipment Leasing and Finance Association (ELFA) is the trade association representing companies in the nearly $ 1 trillion equipment finance sector, which includes financial services companies and manufacturers involved in capital equipment financing. ELFA members are the driving force behind the growth in the commercial equipment finance market and help build capital in the US and abroad. Its 575 members include independent and proprietary leasing and financing companies, banks, financial services companies, brokers / packagers and investment banks as well as manufacturers and service providers. For more information, please visit www.elfaonline.org.
Follow ELFA:
Twitter: @ELFAonline
LinkedIn: www.linkedin.com/groups?gid=89692
Facebook: www.facebook.com/ELFApage
ELFA is the leading source of statistics and analysis on the equipment finance sector. Please visit www.elfaonline.org/Data/ for more information.
The Equipment Leasing & Finance Foundation is a 501c3 non-profit that drives the equipment finance sector – and its employees – through industry-specific knowledge, intelligence, and programs that lead to industry innovation, individual careers, and the general improvement of the equipment leasing and finance industries. The foundation is financed through non-profit individual and company donations. Learn more at www.leasefoundation.org.
Media / press contact: Amy Vogt, Vice President, Communications and Marketing, ELFA, 202-238-3438 or [email protected]
[ad_2]
