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In October, new business volume for the equipment finance sector decreased 9.1 percent compared with October 2007’s total, according to the Equipment Leasing and Finance Association's (ELFA) monthly leasing and finance index. Through 10 months, new business volumes increased 0.9 percent.
 
According to data submitted in October by 25 banks, finance companies and manufacturers included in the index, month-to-month new business volume declined 7.7 percent from $6.5 billion to $6 billion.  Receivables in the less-than-30-days category — a measure of non-delinquent accounts — stood at 96.6 percent. Accounts more than 30 days delinquent increased to 3.4 percent — the highest level since August 2007.
 
Credit approvals of new transactions declined to a two-year low at 72.5 percent as about half of index participants reported fewer transactions submitted for approval and underwriting standards tightening. Total headcount for equipment finance companies remained relatively flat from September to October.
 
"Members are reporting that a combination of enhanced underwriting standards, declining demand and increased cost of funds are resulting in fewer transactions being funded," said ELFA President Kenneth Bentsen Jr. in a prepared statement.  "The continued recession in the financial markets is starting to have its affect on the commercial finance sector.”