May 24, 2013updated 12 Apr 2017 4:02pm

US leasing volume up 23% in April

New business in the US equipment leasing market increased 23%, or $1.4bn, year-on-year in April, resulting in an overall volume of $7.5bn (5.8bn).

By Verdict Staff

by Daniel Milroy-Maher

New business in the US equipment leasing market increased 23%, or $1.4bn, year-on-year in April, resulting in an overall volume of $7.5bn (5.8bn).

The figure was up 10% from March while year-to-date, cumulative new business volume for the first four months of the year rose 8% from 2012, according to the Equipment Leasing & Finance Association (ELFA).

William Sutton, ELFA President and chief executive, said the growth provided "solid evidence that the demand side of the capital investment equation continues to pick up as the broader economy strengthens."

Late payments remained steady at 2.0% from the last two months; similarly, write-offs stayed the same from March at an all-time low of 0.3 percent.

Credit approvals dropped to 77.2% from March’s 78.4%.

The Monthly Confidence Index from ELFA’s research division, the Equipment Leasing & Finance Foundation, revealed a rise to 56.7 for May from 54.0 in April, reflecting "industry participants’ increasing optimism despite continuing concerns over the economy and the impact of federal policies on capital expenditures." .