In May 2021, U.S. companies borrowed 11% more compared to the same month last year to finance their equipment investments, according to the Equipment Leasing and Finance Association (ELFA). This was revealed through the $10.2 billion in new loans, leases, and lines of credit that were signed up for in that month, which was a 7% decrease from April’s total. ELFA President and CEO Leigh Lytle attributed this drop in volume to some businesses delaying their equipment purchases until interest rates decreased.
Based in Washington, ELFA provides reports on economic activity within the equipment finance sector, which is valued at over $1 trillion. Despite this, credit approvals for U.S. companies remained steady at 75% in May, unchanged from the previous month. The Equipment Leasing & Finance Foundation, a non-profit affiliate of ELFA, reported a confidence index for June of 50.2, slightly lower than May’s 50.7 reading. A reading above 50 on the index signifies a positive business outlook.
According to a report by Abhinav Parmar in Bengaluru with editing by Tasim Zahid, the ELFA leasing and finance index is derived from a 25-member survey that includes financial entities such as Bank of America and financing units of companies like Caterpillar, Dell Technologies