Equipment Financing Slows Down in August, But Confidence is Steady
The equipment financing and leasing market took a bit of a dip at the end of the summer. The Equipment Leasing and Finance Association (ELFA) survey for August reported a new business volume drop of 11 percent from July, and a 7 percent decrease when compared to August 2012.
Some may reason companies are stalling or terminating plans to acquire new equipment and machinery, but William G. Sutton, president of the ELFA, points to international and domestic politics.
“Uncertainty surrounding heightened U.S. involvement in the Syrian conflict coupled with a potential federal government shutdown and a looming debt-ceiling fight between Congress and the Obama administration may be responsible for some businesses pulling back on their equipment acquisition plans,” Sutton explained in the report.
Despite the slow down, 2013 continues to be a strong year for equipment financing. Cumulative new business volume this year is 8 percent higher than 2012. Optimism, too, remains strong, as September’s confidence index of 61.3 is similar to that of the previous month. Further, the percentage of companies who believe demand for leases and loans to fund capital expenditures will increase over the next four months was nearly 10 points higher than the previous month.
Companies in need of machinery or technology upgrades can finance equipment rather than make an outright purchase. The financing experts at National Funding offer solutions for many different industries. Consult National Funding for your next upgrade.