January New Business January down 12 percent year over year
WASHINGTON, Feb. 24, 2021 (GLOBE NEWSWIRE) – The Equipment Rental and Finance Association (ELFA) Monthly Index and Monthly Finance Index (MLFI-25), which reports economic activity from 25 companies representing a cross-section of the $ 900 billion equipment finance sector, showed their new business volume for January was $ 8.1 billion, down 12 percent year-over-year from new business size. in January 2020. The measure was down 33 percent month-on-month from $ 12.1 billion in December following the usual quarter-end, year-end spike in new business activity.
Receipts over 30 days were at 2.20 per cent, unchanged from the previous month and up from 2.00 per cent in the same period in 2020. Discount costs were 0.47 per cent, down from 0.59 per cent on the previous month and unchanged from the previous year.
Credit approval fell to 76.2 percent, up from 75.2 percent in December. The total number of equipment finance companies was down 4.9 percent year-over-year.
Separately, the February Institute of Financial Equipment & Finance (MCI-EFI) Monthly Confidence Index is at 64.4, up from the January index of 59.6.
ELFA President and CEO Ralph Petta He said, “The new business rate was very soft in January, as is the norm for early Q1 business activity for many equipment finance companies. Package quality for reporting companies is in the healthy range as well. Economic forecasts indicate that equipment financial activity should accelerate as overall conditions in the U.S. economy develop in 2021. Time will tell. ”
Chris Bucher, President, Hancock Whitney Equipment Finance, LLC, said, “The 2021 pipeline is sustainable and competitive. We are aware of continued demand for a new capex and are hearing a number of equipment vendors discuss back-end manufacturing. ”
About ELFA MLFI-25
The MLFI-25 is the only index that features capex, or the amount of US-funded commercial equipment The MLFI-25 is released worldwide at 8 p.m. East of Washington, DC, monthly on the day before the U.S. Department of Commerce releases the stable product report. The MLFI-25 is a financial indicator that complements the report on durable goods and other economic indices, including the Institute for Procurement Management Index, which reports economic activity in the manufacturing sector. Together with the MLFI-25 these reports provide an overview of the status of production assets in the U.S. economy: equipment acquired, acquired and financed.
The MLFI-25 is a time series featuring two years of business activity for the 25 companies currently participating in the study. The latest MLFI-25, including methodology and partners, is available at www.elfaonline.org/Data/MLFI/.
MLFI-25 approach
ELFA conducts MLFI-25 analysis to help member organizations gain competitive advantage by providing them with advanced research and benchmarking information to support strategic business decisions.
The MLFI-25 is a barometer of the trends in U.S. capital equipment investment. Five components are included in the study: new business size (sources), age of receipts, cancellation costs, credit clearance ratios, (agreed vs. submitted) and headcount for business finance equipment.
The MLFI-25 measures monthly commercial equipment rental and loan activity as reported by ELFA member equipment finance companies representing a cross-section of the equipment finance sector, including small, mid-market ticketing, big ticket, bank, rent and independent and independent finance. companies. Based on hard survey data, the responses reflect the economic activity of the wider equipment finance sector and the prevailing industry conditions nationally.
In ELFA
The Equipment Rental 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. financing capital goods. ELFA members are the driving force behind growth in the commercial equipment financial market and contributing to capital creation in the U.S. and abroad. Its 575 members include independent and receptive rental and finance companies, banks, financial services corporations, broker / packers and investment banks, as well as manufacturers and service providers. For more information, 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 for statistics and analysis in the field of equipment finance. Please visit www.elfaonline.org/Data/ for more information.
The Equipment Leasing & Finance Foundation is a 501c3 not-for-profit organization that leads the equipment finance sector – and its people – through industry-specific knowledge, information and programs that contribute to innovation -normalization of business, individual occupations, and development of the entire equipment rental and financial industry. The Foundation is funded through individual and corporate charitable donations. Learn more at www.leasefoundation.org.
Contact the media / media: Amy Vogt, Vice President, Communications and Marketing, ELFA, 202-238-3438 or [email protected]