Equipment Leasing and Financing Industry Gaining Confidence
Leaders in the equipment leasing and financing sector have shown growing levels of confidence in the industry over the past several months, and according to a recent report, May is no exception. The Equipment Leasing & Finance Foundation released its May 2014 Monthly Confidence Index for the Equipment Finance Industry, and the results show overall confidence levels are high. Confidence levels in May reached 65.4, up slightly from April’s 65.1, hitting its highest level in two years for the third month in a row.
Survey finds confidence levels high, demand expected to increase
When asked to predict the state of their business over the next four months, 31.4 percent of executives in the industry said they think business will improve, down from 37 percent who said the same in April. Approximately 68.6 percent of respondents said conditions will remain the same over this same period, up from 60 percent who responded in kind the month prior. Perhaps most significantly, 0 percent of respondents said they believe business conditions will deteriorate over the next quarter, down from 2.9 percent who responded similarly in April.
Survey participants are also optimistic overall regarding the state of demand in the equipment leasing and financing industry. Just over 34 percent of respondents said they anticipate demand for leases and loans for capital expenditures will improve over the next four months. While this is down from April’s 37 percent, 65.7 percent said they expect demand rates to remain the same, up from 60 percent the month before. Furthermore, no respondents said they think demand will fall, down from 2.9 percent who said they anticipated a drop in demand in April.
Valerie Hayes Jester, a survey participant, assessed the current state of the equipment leasing sector, citing successes and challenges leaders face in the industry.
“We have experienced a transaction flow that appears to be returning to a more normal state after the winter slowdown,” MCI survey respondent Valerie Hayes Jester said. “Companies seem to be getting back on track and ordering equipment that should have been delivered in the first quarter. I am still concerned with the longer term effects of the many changes in our healthcare system as well as still undetermined tax policies that have great impact on small businesses.”
Despite these challenges, equipment leasing has experienced steady growth over the past several months, opening financial options to businesses of all sizes. Those interested in exploring different types of equipment leases should contact National Funding to find out more.