Trends

 

11 03 2014

The Monthly ELFA Index Indicates A Positive Business Environment

11 03 2014

September Marks Further Growth for ELFA Index

Overall new business volume for September was up 31 percent on a month-over-month basis in the equipment leasing industry, according to the latest Equipment Leasing and Finance Association (ELFA) Monthly Leasing and Finance Index.

The index, which covers activity among 25 companies in the equipment finance sector, showed business volume was $9.4 billion in September. When compared to the same month last year, this total represented 21 percent growth.

“All [Monthly Leasing and Finance Index] performance metrics for September indicate a favorable environment for business investment,” ELFA President and CEO William Sutton stated in a press release. “Strong originations and solid portfolio performance, together with a slight uptick in hiring, all point to a robust equipment finance sector as we move into the final quarter of the year. We will keep our eye on these positive indicators as the U.S. economy continues to react to geopolitical events, a worrisome global economic outlook and volatile U.S. equity markets.”

Data also showed positive developments from the Equipment Leasing & Finance Foundation’s Monthly Confidence Index. The index’s October reading was 60.4, up from 60.2 during the previous month. Survey respondents reported growing or consistent demand.

Continuing the trend

The numbers for September are even more impressive when you consider growth during the month prior.

The ELFA Monthly Leasing and Finance Index for August showed a 13 percent increase in business volume from the same time in 2013, which itself followed an 8 percent year-over-year increase during July.

Among the reasons for this trend cited by Sutton were GDP growth, an improving labor market, more consumer spending and low interest rates.

With the economy continuing to improve and equipment leasing continuing to offer business owners plenty of benefits, it’s likely this positive trend will continue.

Featured


  • Small business equipment lease

    Should You Purchase Or Lease Equipment For Your Small Business

    There's more than one way for your small business to get the equipment it needs to succeed. Buying and leasing are both viable options, depending on the unique factors of your enterprise and the financial considerations involved. Choosing between the two is no easy task. Here's a look at how to choose whether to purchase… […]

  • Encourage employee volunteerism

    4 Ways Companies Can Benefit From Social Responsibility

    Companies are taking corporate social responsibility more seriously than ever. According to The Guardian, more than 5,000 corporations release their environmental, social and corporate governance performance on an annual basis. And, nowadays, it's not hard to find an initiative designed to attract socially​ minded companies. The Guardian explained that today's trends in social responsibility are a… […]

  • Alternative Lender - National Funding

    How Alternative Lending Can Solve Cash Flow Struggles

    Maintaining a positive cash flow is one of the most important, and often times, stressful parts of owning a business. Unless you have a hefty bank account, your business is vulnerable to cash flow challenges. Competition, market disruptions, regulatory demands, and even the weather can put the health of your business at risk. And in… […]

  • Trump's small business impact

    How a Trump Administration Could Impact Small Businesses

    President Donald Trump has promised to change course from the Obama administration on a number of business-related issues, including taxes, health care and regulations. If Trump is able to follow through on his promises, entrepreneurs need to know how these changes will affect them and be prepared for a different business climate from what they're experiencing now. Throughout… […]