According to the Equipment Leasing and Finance Association (ELFA) , U.S. businesses, nonprofits and government agencies will spend in excess of $1.5 trillion in capital goods or fixed business investment (including software) this year, and will finance more than half of those assets.
Mike Elton, Vice President-Sales of Advantage Leasing, says that the strong growth is fueled by a recovering economy, along with the many advantages leasing capital equipment brings to businesses. “With growing stability in federal budgets, businesses can feel more comfortable making large purchases. Equipment leasing offers a great way to replace aging or obsolete equipment without depleting a customer’s cash position.”
A majority of U.S. businesses will use some form of financing for equipment acquisition. According to the ELFA, in 2014, investment in manufacturing, equipment and software will be 57 percent of the $1.5 billion in equipment that is expected to be financed through loans, leases and lines of credit, a slight uptick from 55 percent in 2013. The rebound in the housing and energy sectors will also improve the forecast for leasing in the construction, trucking, and manufacturing industries.
Low short-term interest rates will also continue, while long term rates will likely rise, still remaining below historical averages. Financing will continue to remain an attractive option for acquiring equipment.
“We are continuing to see strong interest in financing options from a variety of business sectors this year,” says Elton. “Advantage Leasing is in a unique position to offer direct-to-business financing. Since we are a direct lender, we don’t have the long approval process of other finance sources or brokers. That keeps us highly competitive and able to meet financing needs as soon as a business makes a buying decision.”
About Advantage Leasing
Advantage Leasing is an equipment leasing company that serves businesses throughout the country. All loans are self-funded in house – not brokered. Since its founding in 1992, Advantage has lent nearly one-half billion dollars to over 15,000 businesses. The company is recognized as a Better Business Bureau Accredited Business and has an A+ rating.
For more information on equipment financing, please contact Mike Elton email@example.com or call 1.800.949.7040