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The Equipment Leasing and Finance Association (ELFA) reports a noteworthy 2% year-over-year increase in new business volume for December 2023, reaching $12.5 billion. This surge, typical of the end-of-quarter, end-of-year pattern, also reflects a substantial 51% month-to-month growth from November.
The Monthly Leasing and Finance Index (MLFI-25), a key economic indicator drawing data from 25 companies in the $1 trillion equipment finance sector, reveals a 3.9% rise in cumulative new business volume for 2023 compared to the previous year.
Key Highlights:
Receivables over 30 days increased to 2.3%, up from 2.0% the previous month.
Charge-offs remained steady at 0.4%, unchanged from the previous month.
Credit approvals totaled 75%, showing a slight dip from 76% in November.
Total headcount for equipment finance companies witnessed a 1.2% year-over-year increase.
The Equipment Leasing & Finance Foundation’s Monthly Confidence Index (MCI-EFI) in January registered a notable increase to 48.6 from December's 42.5.
ELFA President and CEO Leigh Lytle expressed optimism, stating, "The positive year-end new business volume indicates that U.S. businesses continue to rely on equipment financing for operation and growth. Despite concerns of a recession and a higher interest rate environment, the industry closes 2023 on a strong note."
Neal Garnett, Chief Commercial Officer and Member of the Executive Board at DLL, shared insights, noting, "DLL finished the year strong with a good December, contributing to a successful 2023. Industry expectations for 2024 include a recovery in tech device sales and leasing volumes."
For the detailed MLFI-25 report, methodology, and participants, visit ELFA's Knowledge Hub.
