Equipment Finance Sector to Surpass $740 Billion in 2013
Well this is great news! As seen on NBC News, a survey was conducted by IHS Global Insight and released by Equipment Leasing & Finance Foundation showing U.S. businesses and agencies will finance more than $742 billion in equipment acquisitions in 2013.
According to the study, the equipment finance sector has emerged from the Great Recession with finance volumes at an all-time high, as a result of double-digit growth in equipment investment and a favorable interest rate environment.
KEY FINDINGS
- Seventy-two percent of companies use some form of financing when acquiring equipment using at least one form of financing (excluding credit cards).
- Cash as a method of purchasing declined for large companies from 2007 to 2012 as larger companies enjoyed greater access to credit markets. In the current low-interest-rate environment, financing equipment acquisitions is especially attractive.
- Even with the relatively high degree of uncertainty over the economy and regulations/fiscal policy, nearly 30% of companies surveyed anticipated increasing their equipment investment over the next 12 months.
- Companies with sales between $25 million and $100 million doubled their share of financing volume from 2006 – when the Foundation’s first market-sizing study was conducted – to 2011. Companies with fewer than 51 employees also doubled their share equipment acquisition via financing in this time period. This may be in part a reflection of the difficulty in obtaining other forms of credit for these segments of the market!
“Equipment financing plays a significant role in helping businesses acquire the equipment they need,” said William G. Sutton, CAE, President of the Equipment Leasing & Financing Foundation. “The equipment finance sector not only contributes to businesses’ success , but to U.S. economic growth, manufacturing and jobs.
Metropark’s VCP Program provides additional benefits over and above equipment leasing. Make sure you discuss these additional options with your Metropark VCP Sales Executive,