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 April was $6.1 billion, up 20% from volume of $5.1 billion in the same period in 2011. Volume was down 10% from the previous month. Year-to-date cumulative new business volume is up 17%.
Receivables over 30 days decreased to 2.7% in April, down from 2.8% in March, and down by 18% compared to the same period in 2011. Charge-offs decreased to 0.6%, down from 0.7% the previous month, and down by 25% compared to the same period last year. Credit approvals decreased to 76% in April from 78% in March. 76% of participating organizations reported submitting more transactions for approval during April, up from 67% in March.
Finally, total headcount for equipment finance companies in April increased 0.7% from the previous month, and was down 4.1% year over year. Supplemental data show that the construction and trucking industries continued to lead the underperforming sectors.