December Leasing and Finance Index Down Y-o-Y

Credit: MediaVillage

By Equipment Leasing and Finance Association 

The Equipment Leasing and Finance Association’s Monthly Leasing and Finance Index – the MLFI-25 – which reports economic activity from 25 companies representing a cross section of the $900B equipment finance sector, showed their overall new business volume for December was $12.1B, down six percent year-over-year from new business volume in December 2019. Volume was up 66 percent month-to-month from $7.3B in November in a typical end-of-year spike. Cumulative new business volume for 2020 was down almost six percent compared to 2019. 

Receivables over 30 days were 2.20 percent, down from 2.30 percent the previous month and unchanged from the same period in 2019. Charge-offs were 0.59 percent, down from 0.61 percent the previous month and up from 0.51 percent in the year-earlier period. 

Credit approvals totaled 75.2 percent, up from 70.4 percent in November. Total headcount for equipment finance companies was down 4.6 percent year-over-year. 

Separately, the Equipment Leasing & Finance Foundation’s Monthly Confidence Index in January is 59.6, unchanged from the December index. (Source)