New business volume up 17% year over year

New business volume in the equipment finance and leasing industry was up 17% month over month in April on double-digit origination growth, the Equipment Leasing and Finance Association reported Thursday.  

Total new business volume in April was $11 billion, up from $9.3 billion in March. Cumulative new business volume among the 25 survey respondents was up 4.9% on a year-to-date basis.  

“The second quarter was off to a strong start with April [Monthly Leasing and Finance Index] results showing solid performance all around,” ELFA President and Chief Executive Leigh Lytle said in a statement. “The equipment finance industry continues to demonstrate its resilience despite informal polling of ELFA members that shows interest rates, tighter credit and inflation to a lesser degree are all impacting their businesses.” 

BY THE NUMBERS:  

• Receivables over 30 days were 2%, down from 2.1% the previous month but up 1.8% YoY;  
• Charge-offs were 0.4%, down from 0.5% in March but up from 0.3% YoY;  
• Credit approvals in April were 75%, down from 77% in March; and  
• Total headcount for equipment finance companies surveyed was up 1.3% YoY. 

Lender sentiment dipped in the last month, though. The Equipment Leasing and Finance Foundation’s May monthly confidence index was 50.7, down from 53.9 in April. 

“Originations had double-digit growth both year over year and month to month, and credit quality is heading in a positive direction with charge-offs and delinquencies both ticking down last month,” Lytle said. “All are indicators that bear continued watching in the coming months.” 

Along with the ELFA hiring data, 22.2% of executives surveyed for the confidence index said they expect to add more staff in the coming months. Some 3.7% of executives said they plan to hire less staff in the next four months, down from 10.7% in April.  

“We’re seeing a noticeable and continued uptick in business volume continuing in April, the third straight month of business growth,” Fleet Advantage President and CEO Brian Holland said in a statement. “Even with this noteworthy trend, businesses remain focused on prudence with their operations and bottom-line discipline given the still-uncertain direction of the overall economy for the remainder of 2024.”