U.S. Business Borrowing for Equipment Down in April

Washington, DC, May 25, 2016—Overall new business volume for April was $7.3 billion, down 12% from new business volume in April 2015, according to the Equipment Leasing and Finance Association's (ELFA) Monthly Leasing and Finance Index, which reports economic activity from 25 companies representing a cross section of the $1 trillion equipment finance sector. Volume was down 10% from $8.1 billion in March.

Year to date, cumulative new business volume decreased 10% compared to 2015.

Receivables over 30 days were 1.2%, unchanged from the previous month and up from 0.89% in the same period in 2015. Charge-offs were 0.30%, down from 0.5% the previous month.

Credit approvals totaled 78.2% in April, up from 77.7% in March. Total headcount for equipment finance companies was up 0.6% year over year.

Separately, the Equipment Leasing & Finance Foundation's Monthly Confidence Index for May is 55.1, a decrease from the April index of 59.1.