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In February, overall new business volume in the equipment finance sector declined by 37.7 percent compared with February 2008’s volume, according to the Equipment Leasing and Finance Association's (ELFA) monthly leasing and finance index. Month-to-month new business volume decreased 26.7 percent from January’s level.

Reported receivables over 30 days increased to 4.5 percent vs. January’s 3.9 percent. Charge-offs increased to 1.74 percent from 1.41 percent. In addition, 47 percent of participant companies reported that fewer transactions were submitted for approval in February because of tightening underwriting standards and lower demand.

"After finishing the fourth quarter down, the first quarter continues on a downward trend as businesses pull back from making new investments in plant and equipment," said ELFA President Kenneth Bentsen Jr. in a prepared statement. "We also witnessed continued deterioration in portfolio quality, albeit better than many other asset classes.”