Small business owners who are looking for equipment financing options can take comfort in the fact that confidence in the equipment financing industry is on the rise. The Equipment Leasing & Finance Foundation recently released its Monthly Confidence Index for the Equipment Finance Industry for June, and results were positive overall.
The report found consumers are feeling more confident in the industry – confidence climbed to a rating of 57.3 from May’s 56.7. This optimism is a positive sign for the $521 billion equipment finance sector. This increased confidence points toward an increased demand for financing, which may be due to increased equipment needs over the summer – it could also be an indicator of an improving economy in which small business owners have greater access to financing options.
Those who responded to the survey reported hope for the future and overall positivity in the market. When asked to predict business conditions over the next four months, 19.4 percent of those surveyed said they expect business will improve, up from 9.7 percent in May. It is not entirely clear what sparked this large jump, although it may be due to an increase in demand.
Respondents reported more optimism in demand in the market as well – 19.4 percent of those surveyed anticipate demand for equipment leases and loans will climb over the next four months, up from just 12.9 percent who thought the same in May.
The index also saw good news for the national economy – 29 percent of executives surveyed said they planned on hiring more workers before the end of the year, nearly a 10 percent jump from the 19.4 percent of executives who answered similarly the month prior.
Considering the size of the industry, an increase in employment in equipment financing could have significant effects on the unemployment rate across the country.
Additionally, 71 percent of those surveyed said they thought the U.S. economy will stay the same over the next six months.
However, there was one important area in which responses dipped from May. When asked whether they thought there would be more access to finances for equipment purchasing, 19.4 percent of executives responded positively, down from 25.8 percent in May.
If small business owners are having trouble gaining access to equipment leasing funds, they can come to National Funding for assistance. National Funding can help with equipment financing for small business owners as well as other financing options.