With so much doom and gloom in the media about the state of the economy, the elections, and gas prices, it seems that it’s nearly impossible to find good news out there. But, despite this, the outlook is generally favorable for the equipment leasing industry.
The ELFA reports that new equipment leasing hit $5 billion in February and the MLFI states that the Equipment Leasing and Finance Foundation’s monthly confidence index for March is 61.7 (a 2.1 point increase from February). This uptick suggests that business owners are cautiously optimistic, and have not stopped investing in their own growth – either by replacing worn out equipment or expanding and adding on additional equipment.
It also seems that more and more business owners are choosing to lease rather than take out a bank loan for an equipment purchase. In fact, Direct Capital reported funded equipment lease volumes are up significantly in the first quarter of 2012 from the comparable period in 2011. This could be due to the fact that alternative lenders, unlike banks, are generally more flexible when it comes to equipment financing and put fewer restrictions on the terms for technology and equipment loans. Also, alternative lenders can roll intangible costs like training, delivery, installation, and maintenance right into the lease agreement – something very appealing to the small business owner.
Overall, things are looking pretty good for equipment financing, as the long term positive outlook for growth seems to have overshadowed any short term concerns. Industry experts have expressed enthusiasm about the opportunities that lie ahead in 2013 and beyond.
How are you going to use equipment financing for your business this year?