Following on the heels of a growth spurt the equipment leasing industry experienced last autumn, the sector appears to have leveled off during the winter, as equipment leasing business went down slightly in February 2013.
The Equipment Leasing and Finance Association (ELFA) – a trade association that represents companies in the $725 billion equipment finance sector, including financial services companies and manufacturers engaged in financing capital goods – released its most recent Monthly Leasing and Finance Index on March 25, showing the decrease recorded from February data.
The ELFA surveyed the economic activity of 25 companies representing a cross section of their sector and discovered new business for February was $4.7 billion – a 6 percent decline from February 2012’s $5 billion. From the monthly standpoint, business declined 20 percent between January and February, the index shows.
According to ELFA President and CEO William G. Sutton, CAE, it is too soon to judge whether these new numbers indicate a long-term decline due to financial uncertainty or whether the drop is merely a one-time occurrence bound to pick up again shortly.
“Recent internal and external economic indicators and analyses point to a moderately sluggish beginning to the year, to be followed by a pick-up in overall economic activity in the second half of the year,” Sutton said in the company’s statement to the press. “February’s somewhat disappointing data could very well provide concrete evidence of this forecast,” he added.
Small businesses benefit over the long term from providing workers with quality equipment that is up-to-date and reliable. Business owners who need help finding financial solutions to lease the proper equipment can consult National Funding, a leader in the industry, on the best equipment leasing options.