Cumulative new business volume in the US equipment finance sector grew by 8% in 2014, an Equipment Leasing and Finance Association (ELFA) report found.
The association’s monthly leasing and finance index (MLFI-25), which reports economic activity from 25 companies representing a cross section of the $903bn equipment finance sector, found that its overall new business volume for December 2014 was $12.9bn (11.4bn) .
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This marks a substantial increase year-on-year, since in December 2013 its new business volume was 20% lower.
ELFA viewed the impressive 90% rise of this variable compared to November, when volume was $6.8bn, as ‘a typical end-of-year spike’.
Late payments over 30 days were unchanged from the previous month as well as the same period in 2013 at 1%.
The report also recorded that write-offs remained at an all-time low of 0.2% for the ninth consecutive month.
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By GlobalDataCredit approvals totaled 78.6% in December, a slight decrease from 79.1% the previous month. Total headcount for equipment finance companies was up 0.5 percent year over year.
ELFA president and chief executive William G. Sutton said: "Despite a very volatile Q4 equities market, the U.S. economy ended the year in a strong position. Against this backdrop, C&I lending picked up as commercial businesses made significant investments in plant and equipment.
Despite the typical end-of-year seasonal spike, December’s MLFI-25 statistics enter record territory: the 20% increase in year-over-year new business volume was one of the largest December increases in the history of the MLFI-25.
