No less a trusted source than the Wall Street Journal has declared that it is open season for equipment leasing and equipment financing.
In a report by Rachel King Monday, the Journal noted that equipment leasing was up in June amongst U.S. businesses by nearly 29 percent over May. That points to a particularly strong lending market, especially with other economic indicators holding steady or tumbling downhill in slow motion.
At Direct Capital, obviously, we view this as good news. That’s not because we’ve been busier than ever this year—though to be perfectly honest, that doesn’t hurt—but because it means businesses large and small are feeling confident enough to go for leases and are therefore doing well. The state of the economy is something we monitor quite closely, after all.
What’s behind this surge? I asked Director of Client Services Scott Lynch to explain.
Direct Capital’s Perspective
“The increase in business is partly due to seasonality and partly due to macro economic pressures,” Lynch told me.
To explain that further, he spoke of the way gas prices fell and businesses turned their eyes to the second half of the year.
“Beginning of the summer, lots of business will line up their needs for the 2nd half of the year, they will align equipment and staffing for the second half of the year and for pending contracts. We also had downward pressure on gas prices which stimulated buying and reinvestment,” Lynch said.
This jibes with the prevailing national view, which is in essence that small businesses are anticipating growth and greater financing needs in the second half and are reacting accordingly. July’s numbers—which should be available relatively soon—ought to lend further credence to that idea.
How’s your small business feeling about leasing equipment this year?
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