EquipmentEngine ELF® Report: Equipment Finance Industry Looks to Innovate Amid Fierce Competition, Regulatory Uncertainty

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Many in the equipment leasing and finance industry are encouraged by how the year is developing, but cautious optimism sums up the general forward-looking sentiment. While most report that delinquencies are under control and that originations are significantly higher than last year, all agree that we are not out of the woods yet.

2011 Third Quarter EquipmentEngine ELF Report

2011 Third Quarter EquipmentEngine ELF Report

“Cautious optimism with a heavy emphasis on the need to innovate in order to compete effectively in the 21st century emerged as the dominant themes of the last quarter,” said Richard Henderson, President of EquipmentEngine, LLC.

EquipmentEngine, LLC today released the 2011 Third Quarter EquipmentEngine ELF® Report, its quarterly equipment leasing and finance industry update. The report was compiled with the help of a wide variety of contributors from across the equipment leasing and finance industry.

“Cautious optimism with a heavy emphasis on the need to innovate in order to compete effectively in the 21st century emerged as the dominant themes of the last quarter,” said Richard Henderson, President of EquipmentEngine, LLC. “I am very pleased with the willingness of my industry colleagues to contribute, from their own unique perspectives, such thoughtful and informative accounts of the equipment leasing and finance industry today.”

READ FULL REPORT HERE

Interested in contributing to future EquipmentEngine ELF® Reports? CONTACT EquipmentEngine

ELF REPORT HIGHLIGHTS

  •     Portfolio Growth & Performance Many in the equipment leasing and finance industry are encouraged with how the year is shaping up, but cautious optimism sums up the general forward-looking sentiment. While most report that delinquencies are under control and that originations are significantly higher than last year, all agree that we are not out of the woods yet…
  •     Small Business Borrowing Activity A variety of reports have cited increases in small business borrowing activity. This is encouraging news since small and mid-size businesses account for most of the hiring in the U.S. Increased borrowing activity among small and mid-size companies could indicate a coming improvement in the unemployment rate, but a closer look is also in order…
  •     Opportunities, Risk in Solar Panel Leasing US Bank, Key Equipment Finance, GE Energy Financial Services and numerous others have taken the plunge into solar project finance and leasing. Per watt prices for solar power have dropped by nearly 75%...
  •     Wrestling with Competition, Margin Compression Fierce competition has heated up again, and the battle is particularly brutal for high-quality credits, causing expected yields to shrink. Equipment finance companies who expect to compete and survive on tighter margins will need to adapt now more than ever…
  •     The Time for Innovation is Now To stay competitive, equipment finance companies are honing their systems and finally upgrading from legacy applications, but future success in our industry will be driven by innovation. Much improvement is needed…
  •     Looking forward As conditions in Europe continue to deteriorate, we can likely expect a temporary faltering in the U.S. economy that may have a negative impact on portfolio performance and growth. Longer term, likely post the 2012 election cycle, we’ll see much of the uncertainty in the markets dissipate and perhaps we’ll begin to move forward again with a very slow, but steady recovery…

Contributors: Hugh Swandel, Managing Director at The Alta Group and President of the NEFA’s board of directors; Gary Souverein, President at Pawnee Leasing Corporation; Brad Kime, President at On Deck Capital; Dawn Gillette, Chief Financial Officer at Direct Capital Corporation; John Wright, Senior Vice President, Portfolio Services at Financial Pacific Leasing; Tony Grappone, C.P.A, Partner, at Novogradac & Company, LLP; Jeff Dicosola, Sales Manager, North America, Equipment Finance Solutions at Great America Insurance Group; Christopher “Kit” Menkin, Publisher at Leasing News, Inc.; David Choate, Small Business Blogger at BizEngine; and Matthew Sullivan at OfferFuse. The EquipmentEngine ELF® Report is prepared by Richard Henderson, President of EquipmentEngine, LLC.

About EquipmentEngine, LLC.
EquipmentEngine, LLC, via its Lender Solutions Practice, is a Portfolio Services company founded in early 2010 to simplify the business of managing a nationwide commercial repossession and recovery effort. Since that time, EquipmentEngine has expanded its service offering to include Portfolio Servicing, Collections, Creditor Offensive Litigation Management, Appraisals, Inspections, Voluntary and Involuntary Repossession, Storage, and Remarketing. EquipmentEngine leverages Six Sigma processes, 21st century technology, and over 200 storage facilities across the country to deliver cost effective and consistent equipment management services for our clients. EquipmentEngine is headquartered in Portsmouth, NH.

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