While there’s been plenty of hand-wringing over the economy in recent months, one sector has been unscathed. That sector is equipment finance.
A recent Equipment Leasing and Finance Association survey found the first increase in volume in a few years. In total, volume went up 3.9 percent in 2010, compared to a 30.3 decline in 2009 and a 2.2 percent decline in 2008. New business volume went up by the same amount, along with every market segment except small-ticket.
Good news, right? It is indeed, especially for new businesses that have to invest in equipment early and often. Given that equipment needs are still incredibly prevalent—just this morning on our Facebook page, one small business owner said that he would invest in equipment right now if he had $10,000 to do so with—growth in the industry is good for just about everybody.
It’s worth noting that the one organization type that didn’t grow was…wait for it…banks. The woes of the banking industry have been well publicized in recent months, and it’s little coincidence that those who are grim about the state of the economy tend to be reading the banking news. So if you’re looking for equipment finance, this might not be the time to trot to the vault.
This goes back to our post last week, where we talked about our month-over-month growth in volume at Direct Capital. It’s proof that not only is this economy not as bad as many fear, but that there are plenty of lenders out there for everything from equipment finance to working capital.* You just have to know where to look.
Are you planning to use equipment finance this year, gentle readers?
Photo credit to osmar01 at http://www.sxc.hu/photo/1328815
*Working capital not available in the following states: AK, DE, ND, VT