Leasing, Finance Volume Up in October

Nov. 23, 2020

Overall new business volume for leasing and financing equipment was up in October compared to September, but down for the year compared to 2019, according to the Monthly Leasing and Finance Index (MLFI-25).

The Equipment Leasing and Finance Association publishes the Index, which reports on the activity of 25 equipment finance companies. Volume was $9.2 billion in October and $8.7 billion in September. Cumulative new business is down 6 percent compared to the same period in 2019.

“To the extent that member companies responding to the October MLFI-25 survey are an indicator, the equipment finance industry shows resilience in the face of a worsening health pandemic and uneven economic performance in the U.S.,” said ELFA president/CEO Ralph Petta in a prepared statement. “The labor market continues to strengthen, except for workers and their employers in the restaurant, travel, leisure and hospitality sectors, who continue to struggle. Corporate earnings in many sectors are strong, the equity markets continue to defy gravity and business confidence seems to be on the rise. Hopefully, this struggle to get back to a sense of normalcy will not be overtaken by a double dip recession caused by worsening Covid-19 outbreaks reported in some states around the nation. 

“At the end of the day,” he said, “equipment finance companies continue to do their part to help the nation get back to business by helping finance billions of dollars in equipment investment by businesses both large and small.”

Source: ELFA