The Equipment Leasing and Finance Association's (ELFA) Monthly Leasing and Finance Index which reports equipment finance activity showed that overall new business volume for October was virtually flat (0.10%) when compared to October 2006. However, according to year-to-date cumulative totals, new business volume for January to October 2007 was 6.5% higher when compared with the same period in 2006.
New business volume for October totalled $6.8 billion for new commercial equipment leases and loans, compared to $7.2 billion in September. New business volume for October 2006 totaled $6.8 billion.
"While new origination, year over year, for October tapered off from its earlier growth plane, borrower demand and credit quality remain positive for the commercial equipment finance sector amidst the subprime meltdown," said ELFA president, Kenneth E. Bentsen, Jr.
Bill Verhelle, ELFA Chairman and also CEO of First American Equipment Finance added: "The U.S. housing slump and mortgage crisis have so far had little or no effect on the commercial equipment leasing and finance sector. October commercial lease and loan volume was relatively robust. October delinquencies remained at historically low levels." Despite growing fears of recession, Verhelle observed that "business credit remains widely available on favorable terms to small and medium size commercial borrowers meeting traditional qualification criteria."