ElFA Reports: US Business Equipment Borrowings Drop 4% in June

According to the Equipment Leasing and fund Association (ELFA), American businesses borrowed 4% less in June than they did during the same month the previous year to fund equipment investments. Ten.20 billion worth of new loans, leases, and credit lines were signed by firms in June, a 2% decrease from May.

The $1 trillion equipment finance industry is monitored by the ELFA, which reported that loan approvals for US corporations continued to hover around 75%, where they were in May. Leigh Lytle, President and CEO of ELFA, ascribed the decline in the number of new business to a decrease in bank origination activity after two months of double-digit growth.

The non-profit branch of ELFA, the Equipment Leasing & Finance Foundation, announced a rise in its confidence index for July, which went from 50.2 in June to 50.7 in July. When the score is greater than 50, equipment financing experts appear to be cautiously optimistic about the state of their organization.

A survey of 25 members—including significant businesses like Bank of America, Caterpillar’s financing division, Dell Technologies, Siemens AG, Canon Inc., and Volvo AB—provides the basis for the ELFA’s leasing and finance index. This index is a crucial tool for observing patterns in finance and investment in equipment.