Confidence Rises in Equipment Financing Industry
Aug 07, 2023, 20:13 ET
Written by: Matthew Preuss
There was good news this month coming out of the Equipment Leasing & Finance Foundation in Washington, D.C. A number of NCCI clients are members of this organization. According to the foundation’s July Monthly Confidence Index for the Equipment Finance Industry, confidence in the equipment finance market rose to 46.4 in July, up from 44.1 in June.
The Foundation is an arm of the Equipment Leasing and Financing Association (ELFA), the trade association representing financial services companies and manufacturers in the nearly $1 trillion U.S. equipment finance sector. The association’s members provide the financing that businesses need to operate and grow. ELFA exists to provide member companies a platform to promote and advocate for the industry, including attracting and developing new and diverse talent; a forum for professional development and training; and a resource that develops information about, and for, the industry.
As respondents to the monthly survey pointed out, this is a fairly nimble sector and that’s improving the outlook of the organization’s members, despite the threat of a near future recession.
What executives believe about the future of their businesses.
Despite rising confidence among executives working here, only 7.7% said they believe business conditions will improve over the next four months. That’s less than one in 10, but last month it was less than one in 20.
About 65% of respondents said they expect business conditions to remain the same over the next four months, while 26.9% said they expect business conditions to worsen.
When asked, just over 11% of the survey respondents believed that U.S. economic conditions will get “better” over the next six months, an increase from 6.7% in June.
In June, 53.3% of respondents said they thought economic conditions in the U.S. will worsen over the next six months, but by July that number had fallen to 34.6%.
So, overall, the news is good that fewer executives are expecting to see the economy worsen in the near future. But whether they are hoping for brighter days or not, most are likely preparing now for the possibility that the market will turn the other way.
Preparing to mitigate risk in the event it appears.
While many know NCCI for the risk mitigation work we do for banks, mortgage lenders and credit unions, we also serve a number of ELFA members. Whether it’s in person outreach, collateral inspections, or a specialized service our clients require, NCCI is nimble enough to answer when the industry calls.
If you’re in the equipment leasing or financing industry and looking to put risk mitigation services in place in case business conditions worsen, reach out to us today. We’ll help you build a comprehensive plan that will mitigate your risk in the event your borrower falls off track.
For more information, visit us online today or call Doring Lloyd at firstname.lastname@example.org or (657) 554 – 3601.