The Equipment Leasing and Finance Association’s (ELFA) Monthly Leasing and Finance Index (MLFI-25), which reports economic activity for the $628 billion equipment finance sector, showed overall new business volume for June was $8 billion, up 9.5% from volume of $7.3 billion in the same period in 2011. Volume was up 29% from the previous month. Year-to-date cumulative new business volume increased 14.5%.
Receivables over 30 days were 2.4%, down from 2.7% in May, and down slightly when compared to the same period in 2011. Charge-offs increased to 0.6% in June, up from 0.5% the previous month, and down by 45.4% compared to the same period last year.
Credit approvals increased to 78.7% in June from 78.3% in May. Sixty-five percent of participating organizations reported submitting more transactions for approval during June, down from 75% in May.
Finally, total headcount for equipment finance companies increased slightly from the previous month, but declined 2.6% year over year. Supplemental data show that trucking and construction led the underperforming sectors, followed by small and medium-sized enterprises.