More than $6.4 billion in new equipment was financed during the month, up from $6.2 billion during the same period the previous year.
Boston MA (PRWEB) December 25, 2012
LeaseQ, one of the leading providers of commercial and business equipment leasing and financing in the United States, is reporting an increase in equipment based lending for the month of November, on the order of 3.2%. The increased business was first reported in a survey taken by the Equipment Leasing and Finance Association (ELFA), noting that more than $6.4 billion in new equipment was financed during the month, up from $6.2 billion during the same period the previous year.
The growth of sales and orders for several capital equipment companies dropped off some in November, a clear reflection of buyers increasing doubts and worries over the long term strength of the US economy, unclear visibility on economic conditions for the end-market, and growing anxiety over the so-called fiscal cliff crisis. The conventional wisdom is that any additional growth may have been stunted over the possibility of higher taxes and cuts in government spending.
Spending for equipment needs has grown faster in than most other areas of the broader US economy, with more and more companies replacing worn out or outdated material after having had to defer such projects for much of the recession that began in 2008. Since the beginning of this year, however, financing volume has been back up over 15% to $72.2 billion. December is also likely to show a demonstrable surge in spending as companies rush to complete 2012 capital spending programs before the end of the year. December is almost always the busiest month of the year for financing activities.
In other related activity, credit portfolio quality was mixed in November, with loans and leases past due by more than 30 days accounting for about 2% of net receivables. This was after six months of consecutive drops. Charge offs amounted to 0.5% of net receivables, and the approval rate for loans and leases was 77% in November.
Respondents in the survey included Welss Fargo, Bank Of America, Fifth Third Bank, Caterpillar, Deere & Co., Volvo, and Dell.
Based in Boston MA, LeaseQ is one of the leading providers of commercial equipment lease finance options in the United States, offering a wide range of lending options for everything from small business startups to Fortune 500 companies.