The Equipment Leasing and Finance Association’s (ELFA) Monthly Leasing and Finance Index (MLFI-25), which reports economic activity for the $521 billion equipment finance sector, showed overall new business volume for August was $5.7 billion, up 33% from volume of $4.3 billion in the same period in 2010. Volume was unchanged from the previous month. Year-to-date cumulative new business volume is up 25%.
All credit quality metrics showed improvement. Receivables over 30 days decreased to 2.5% in August from 2.7% in July, and declined by 42% compared to the same period in 2010. Charge-offs were down slightly from the previous month, and decreased by 54% from the same period in 2010, representing their lowest level in over two years.
Credit standards relaxed in August as the number of lease applications approved increased to 77.6% from 76.3% the previous month, and were up year over year as well. Over two-thirds of participating organizations reported submitting more transactions for approval during the month.