Data from the US Equipment Leasing and Finance Association
(ELFA) showed that overall new business volumes for September fell
by 30.9 percent year-on-year.
The data was not all bad, however, as ELFA’s monthly leasing and
finance index, MLFI-25, also showed that month-to-month new
business volume increased 27 percent from August to September, from
$3.7 billion (€2.5 billion) to $4.7 billion.
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“We find encouraging the fact that the decrease in new business
volume slowed in September after several months of steady decline,”
said ELFA interim president Ralf Petta. “However, this sliver of
good news contrasts with the sharp deterioration in portfolio
quality illustrated by the September receivables data.”
Indeed, receivables over 30 days increased to 5.6 percent as
compared to 5 percent in August. On a year-on-year basis, this is a
60 percent increase, which, according to ELFA, reflects a
significant deterioration in credit quality reported by two
responding organisations in the group of 25 lessors which take part
in the survey.
Meanwhile, in the UK, data from the FLA showed that business
finance volumes (excluding big ticket) dropped nearly 36 percent
year-on-year to £1 billion (€1.2 billion) at the end of August,
lower than any month for a number of years.
Jason T Hesse
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