The Equipment Leasing and Finance Association, the trade association that represents the equipment finance sector, just released their Monthly Leasing and Finance Index for April of this year. Overall new equipment volume for April was $6.1 billion, up 20 percent from a year ago. However, volume is down 10 percent from March, and The Monthly Confidence Index for May is 59.2, also down slightly from April.
Direct Capital has seen some growth in April on our end as well. The number of opportunities that were submitted for financing is up 20 percent over last April, while the number of those that were approved is up 25 percent (a 0.7 percent increase from March) – indicating that the quality of applicants and perhaps business credit-worthiness is improving.
So what does this mean for the industry?
ELFA President and CEO William G. Sutton, CAE, has said: “April’s new business volume and credit quality metrics appear to provide evidence that the equipment finance sector continues to gain momentum. Recent anecdotal information from ELFA members gathering in Washington, D.C., for a series of leadership meetings in mid-May supports the observation that the demand cycle for capital equipment parallels the broader economy in that both continue to strengthen, albeit slowly.”
Though the economy may still be struggling, the current low interest rates have made equipment financing easier and more attractive for many businesses. Alternative lenders are making financing even easier, as businesses can avoid jumping through hoops at their local banks, and are much more likely to work with a less than perfect credit score. With opportunities like this, it’s likely the number of leases will continue to rise.
If you’re ready for equipment financing, be sure to check out the equipment financing programs Direct Capital has to offer.
Have you financed any equipment lately?