US business equipment borrowings up 17% in April, ELFA says
May 22 (Reuters) -U.S. companies borrowed 17% more to finance equipment investments in April compared to a year ago, industry body Equipment Leasing and Finance Association (ELFA) said on Wednesday.
Companies signed up for new loans, leases and lines of credit worth $11 billion in April, up 18% from a month ago.
"Originations had double-digit growth both year over year and month to month, and credit quality is heading in a positive direction with charge-offs and delinquencies both ticking down last month," ELFA President and CEO Leigh Lytle said.
The Washington-based company, which reports economic activity for the over $1-trillion equipment finance sector, said credit approvals for U.S. companies in April were 75%, down from 77% in March.
ELFA's non-profit affiliate, the Equipment Leasing & Finance Foundation, said its confidence index for May stood at 50.7, down from 52.9 in April. A reading above 50 indicates a positive business outlook.
ELFA's leasing and finance index is based on a 25-member survey, including Bank of America BAC.N and financing units of Caterpillar CAT.N, Dell Technologies DELL.N, Siemens AG SIEGn.DE, Canon Inc 7751.T and Volvo AB VOLVb.ST.
Reporting by Abhinav Parmar in Bengaluru; Editing by Tasim Zahid
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