Equipment Leasing Up 30 Percent from May
The equipment leasing industry has experienced significant growth over the last month, a recent Equipment Leasing and Finance Association (ELFA) report found. ELFA’s Monthly Leasing and Finance Index showed overall business volume for the month of June was $9 billion, up 30 percent from May. The index, which gathered results from 25 companies across the $827 billion industry, also found new business volume was up 3 percent from June 2013, showing a steady increase in the number of companies investing in business equipment and technology for operations.
Confidence in the sector is also up, with the separate Equipment Leasing and Finance Foundation’s Monthly Confidence Index bearing a reading of 61.4 in July, a positive rating unchanged from the month prior.
Thirty day receivables were 1.6 percent in June, down from the previous month, but up from June 2013’s 1.4 percent. Credit approvals rose to 80.1 percent in June, up from 76.1 percent the month prior.
“New business volume shows steady year-over-year growth as businesses continue to invest in plant and equipment,” ELFA President and CEO William G. Sutton said. “It remains to be seen whether and to what extent the Fed’s recent stance toward a gradually tightened monetary policy and resultant increase in short and long term rates in the coming months is providing a stimulus for this rise in capital expenditure.”
Lenders like National Funding provide equipment leasing options for materials ranging from the latest in mobile technology to heavy machinery. By leasing rather than buying, companies can get their hands on equipment that can help them improve daily operations without overextending their budgets. Companies who are interested in learning more about equipment leasing and other financial options should contact National Funding today.