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Volume was down 26% from $12.5 billion in December following the typical end-of-quarter, end-of-year spike in new business activity.
Equipment Leasing and Finance Association
03/04/2024

The Equipment Leasing and Finance Association’s(ELFA) Monthly Leasing and Finance Index (MLFI-25), which reports economic activity from 25 companies representing a cross section of the $1 trillion equipment finance sector, showed their overall new business volume for January was $9.3 billion, up 6% year-over-year from new business volume in January 2023. Volume was down 26% from $12.5 billion in December following the typical end-of-quarter, end-of-year spike in new business activity.

Receivables over 30 days were 2.3%, unchanged from the previous month and up from 1.9% in the same period in 2023. Charge-offs were 0.5%, up from 0.4% the previous month and up from 0.3% in the year-earlier period.

Credit approvals totaled 76%, up from 75% in December. Total headcount for equipment finance companies was up 1.4% year-over-year.

Separately, the Equipment Leasing & Finance Foundation’s Monthly Confidence Index (MCI-EFI) in February is 51.7, an increase from the January index of 48.6.

ELFA President and CEO Leigh Lytle said, “The optimism I expressed in last month’s MLFI continues as 2024 gets off to a strong start with solid new business volume and increased industry confidence. It’s especially encouraging to kick off in positive territory since equipment investment—the lifeblood of the equipment finance industry—is forecast to pick up in the second half of the year. Credit quality bears monitoring since delinquencies and charge-offs, in particular, remain elevated year over year.”

Bobby Campbell, SVP, Managing Director, Operations & Strategic Development, Flagstar Financial & Leasing LLC, said, “Our equipment finance industry has kicked off 2024 with a stronger launch than a year before on the heels of an extremely active fourth quarter. Many finance companies remain cautious within certain segments of the trucking industry, though credit concerns and delinquency are beginning to level off with hopes of a near-term positive inflection. With several bank finance players facing ongoing liquidity challenges, strong independents and captives should continue to take advantage of capturing additional market share in the months ahead.”  



The Equipment Leasing and Finance Association (ELFA) is the trade association that represents companies in the $1 trillion equipment finance sector, which includes financial services companies and manufacturers engaged in financing capital goods. ELFA members are the driving force behind the growth in the commercial equipment finance market and contribute to capital formation in the U.S. and abroad. Its 580 members include independent and captive leasing and finance companies, banks, financial services corporations, broker/packagers and investment banks, as well as manufacturers and service providers. ELFA has been equipping business for success for more than 60 years. For more information, please visit www.elfaonline.org.