Industry leaders expect the equipment leasing sector to experience growth in coming months, a new report has found. The Equipment Leasing and Financing Association (ELFA) recently released results from a survey on the state of the $827 billion industry. According to the findings of the report, those in the equipment leasing industry are ready to experience gains over the coming quarter and year.
Around 31 percent of business leaders surveyed – up from 25 percent last January – said they believe they will have an easier time accessing financial capital over the next quarter, which will make for speedier equipment acquisitions. Another 65.6 percent said they expect access to capital to remain steady during that period, down from 75 percent of respondents who said the same last month. However, 3.1 percent of respondents reported they anticipate restricted access to capital, up from zero percent of those who responded similarly at the beginning of the year.
Improved business expected as the U.S. heads toward spring
Just over 21 percent of executive respondents said they anticipate improved business over the next four months, while around 72 percent of participants said they expect conditions to hold steady during the same time period. While both of these numbers indicate growth in the sector, it is important to note that around 6 percent of respondents said they expect business to worsen, up from 5.6 percent who said the same in January.
One of the reasons experts in the field tend to agree that business conditions will improve is that as winter fades, leasing may tend to increase.
“The brutal winter experienced by a significant portion of this country has slowed down many projects that would have been in progress by now,” Valerie Hayes Jester, president of Brandywine Capital Associates said. “I am hoping that the last third of this quarter will show the signs we had experienced at year end, as demand increased.”
Furthermore, as spring approaches, equipment leasing companies expect to expand their hiring initiatives – 40.6 percent of study participants said they project that they will increase hiring over the next quarter, up from 33 percent in January. Around 53 percent forecast that recruitment efforts will hold steady over that same time period, down from 58.3 percent who responded similarly the month prior. Approximately 6 percent of executives said they anticipate their companies will reduce the number of employees on their payroll, down from 8.3 percent who said the same last month.
As equipment leasing firms increase their inventory of business tools and technology, small business owners around the country may find equipment leasing options more appealing and easier to access over the next quarter. These firms can provide leasing for a wide variety of business equipment that can benefit entrepreneurs and help them keep ahead of the pack. Those interested in equipment leasing and other financial services may want to contact National Funding for assistance.