We see a lot of shopping for financing right now so we believe there is pent up demand. You can’t blame businesses for being overly cautious when it comes time to pull the trigger on the purchase of that next piece of equipment though.
Boston, MA (PRWEB) December 02, 2013
At $725 billion the equipment lease and finance sector has a powerful effect on the American economy. The Equipment Leasing and Finance Foundation’s Monthly Confidence Index typically receives a lot of attention not only from the sector itself but from economists and Wall Street alike. The index, which is designed to collect leadership data reports a qualitative assessment on prevailing business conditions and expectations as reported by key lease finance executives from this enormous industry sector.
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In October, confidence in the equipment finance sector declined from September moving to 54.0 from 61.3. Economists and industry specialists speculate that this largely had to do the negative impact of the federal government’s budget response, an unlikely downturn to an otherwise steady industry outlook.
When asked about the outlook for the leasing and financing equipment sector, Vernon Tirey, Founder and CEO of equipment lease and finance marketplace LeaseQ said, “The industry continues to remain optimistic. On the supply side Lenders continue to remain aggressive so there is lots of money available and rates are as good as they have ever been. The concern is with the stalemate in Washington. At LeaseQ businesses come to shop for the best equipment finance options because they see competitive monthly payments from leading lenders and our soft credit inquiry means there is no impact on their personal credit. We see a lot of shopping for financing right now so we believe there is pent up demand. You can’t blame businesses for being overly cautious when it comes time to pull the trigger on the purchase of that next piece of equipment though. We all don’t know what the next dumb government trick is going to be as both parties ignore the economy to try and score meaningless political points. Having said that, our business is the strongest it’s ever been – which bodes well for the future of the sector as a whole.”
Other business leaders were not quite as sanguine. In the October 2013 survey results, The Equipment Leasing and Finance Foundation’s Monthly Confidence Index (NCI – EFI) was 54.0, a decline from September’s 61.3. Eleven percent of executives responding to the survey said they believed business conditions will improve over the next four months, down from 30% in September. While 74% of respondents believed that business conditions will remain the same over the next four months - up from 66.7% in September’s survey. Additionally, 7.4% of survey responders believe that demand for leases will increase over the next four months – down from 33% in September.
However, 33.3% of respondents indicated that they believe their company will increase spending on business development activities during the next six months. This represents an increase from 30.3% in September while 66.7% believe there will be no change in business development – unchanged from September. Although industry insiders seem less optimistic, companies continue to expand and seek new equipment options as evidenced by the comments from LeaseQ’s Tirey.
LeaseQ’s groundbreaking lease and finance marketplace platform allows businesses to immediately see which leasing rates and plans they qualify for from leading finance companies. The easy to use platform compares the best rates and terms that best fits a business’s needs and budget. The LeaseQ One Touch platform can also run real-time personal and business credit scores without impacting the business owner’s personal credit. This fast process means that business owners can come back over and over with no impact on their credit rating. The LeaseQ One Touch platform is fast, simple and best of all 100% free of charge.
Based in Woburn MA, LeaseQ is one of the leading providers of equipment leasing and financing options in the country. Try their online leasing and financing platform by visiting them online at https://www.LeaseQ.com.