CHICAGO (Reuters) - A trade group for lenders that finance half the capital equipment investment in the United States told Reuters on Monday that businesses postponed new capex spending once again in June as underwriting standards continued to tighten.
The Equipment Leasing and Finance Association told Reuters that its capex financing index, which measures the overall volume of financings used to fund equipment acquisitions, fell 36.9 percent year-over-year in June to $5.2 billion.
The group said the percentage of borrowers delinquent 30 days or more on their capex financings rose to 4.1 percent last month, up from 3.1 percent last year.
Charge-offs as a percentage of all receivables rose to 2.44 percent in June, up from 1.11 percent last year, ELFA said, and approvals fell to 65.4 percent from 74 percent last year.
Of the $1.1 trillion invested in plant, equipment and software in 2006, 55 percent, or $600 billion, was financed through loans, leases and lines of credit from the companies represented by ELFA, according to a 2007 study by Global Insight, their latest such study.
ELFA’s monthly report will be published officially on Tuesday.
Reporting by James Kelleher; Editing by Phil Berlowitz