ELFA: New business volume, employment fall in June
Credit approvals unchanged for 2nd consecutive month
New business volume in equipment finance slowed year over year in June.
The stall is attributed to fewer new bank loan applications, according to Equipment Leasing and Finance Association President and Chief Executive Leigh Lytle.
“A pullback in origination activity at banks caused overall new business volume to dip in June after double-digit growth in the previous two months,” she said in a July 24 release. “We expect financial conditions to remain solid in 2024 as recent inflation data leads the Fed to begin easing borrowing costs in September.”
According to the ELFA Monthly Leasing and Finance Index:
- New business volume dropped to $10 billion in June, down 4% YoY and 2% month over month;
- Cumulative new business volume rose 4.1% YoY, totaling $57.5 billion;
- Credit approvals were unchanged at 75% for a second consecutive month;
- Headcount fell 0.9% YoY; and
- Charge-offs landed at 0.5%, up from 0.4% in June 2023.
Eindhoven, Netherlands-based lender DLL Group saw YoY declines in its United States food and agriculture business in June due to industrywide stalls, Ken Whitelaw, head of global program management for that business unit, told Equipment Finance News.
“The market has partially softened,” he said.
Whitelaw said a decline in the quality of applications year-to-date has led to lower credit approval rates.
“We have not adjusted any of our underwriting standards,” he said. “Charge-offs have also increased but from an unusually low base.”
Visit the Equipment Finance News Lender Directory here. The directory lists banks, captives and independent lenders. Lenders are invited to add and update their own company details to the directory to provide dealers with the most up-to-date information available.
Proud Member Of
Check Out Our Industry Event
