Taycor Financial Remains Confident as Equipment Finance Trends Steadily Increase

Taycor Financial Monthly Confidence Index

The August 2013 MCI-EFI (Monthly Confidence Index for the Equipment Finance Industry) revealed that the confidence in the equipment finance market increased from July’s  index of 59.4 to 61 this past month. Even in the face of economic distress, optimism for the industry’s improvement continues on and participants remain assured that business conditions will progress, or at the least remain the same over the next few months.

In the midst of the MCI-EFI release, Taycor Financial conducted its own research and study on the matter. The company distributed a similar survey to its customer base asking about expectations in equipment finance for the future and found that its results differed slightly from the MCI-EFI. The main cause of the fluctuations in numbers between the two surveys is the obvious difference in respondent demographics. While the MCI-EFI covered all segments of the market including all banks, financial service and independent companies, Taycor focused on its lenders and customers it serves, particularly businesses in the medical, manufacturing, and IT industries to name only a few. (For an extended list of industries that Taycor used for their study, visit http://www.taycorfinancial.com). Although percentages differed from the MCI-EFI survey, the end results for both surveys turned out to be the same. Both surveys showed an increase in optimism for the equipment finance industry’s progress in the future.

Below is a brief summary of the August 2013 MCI-EFI Survey Results:

  • Assessment of business conditions over the next 4 months:
    • 32.4% believe conditions will improve (25% in July)
    • 67.6% believe business conditions will remain the same (71.9% in July)
    • No one believes business conditions will worsen (3.1% in July)
  • Assessment of demand for leases and loans to fund capital expenditures over the next 4 months:
    • 23.5% believe demand will increase (15.6% in July)
    • 76.5% believe demand will remain the same (81.3% in July)
    • No one believes demand will decline (3.1% in July)
  • Assessment of access to capital to fund equipment acquisitions over the next 4 months:
    • 20.6% expect more access to capital (21.9% in July)
    • 79.4% expect the same access to capital (unchanged in July)
    • No one expects less access to capital (unchanged in July)
  • Assessment of employment over the next 4 months:
    • 29.4% expect to hire more employees (25% in July)
    • 64.7% expect no change (68.8% in July)
    • 5.9% expect fewer employees (6.3% in July)
  • Evaluation of the current U.S. economy:
    • 91.2% evaluates the economy as fair (90.6% in July)
    • 8.8% evaluates the economy as poor (9.4% in July)
  • Assessment of U.S. economic conditions over the next 6 months:
    • 26.5% believe the economic conditions will get better (34.4% in July)
    • 70.6% believe the economic conditions will stay the same (62.5% in July)
    • 2.9% believe economic conditions will worsen (3.1% in July)
  • Assessment of spending on business development activities over the next 6 months:
    • 29.4% believe their spending will increase (31.3% in July)
    • 70.6% believe their spending will not change (68.8% in July)
    • No one believes there will be a decrease in spending (unchanged in July)

Regardless of the market segment represented, respondents have differing but improving points of view on the future outlook for the industry. Although Taycor Financial remains optimistic and customers seem to follow the same attitude, the company recognizes the increase in competition and the need to consistently raise the bar for credit worthiness and rates. Demand for equipment financing has remained very strong considering the current lack of economic growth and sources are more plentiful, however it seems too soon to tell how substantial sustained of a growth will occur. The overall outlook continues to remain positive so we’ll see what pans out in the final quarter.

About Taycor Financial

Founded in 1997, with offices in Los Angeles CA and Boston MA, Taycor Financial has joined the ranks of America’s top businesses, establishing itself as one of the premier equipment financing companies in the U.S. Taycor is also one of the most rapidly growing; having made the “Inc. 500” list of America’s fastest growing private companies. For more information on equipment leasing or financing, to get an Instant Quote, or explore career opportunities visit www.Taycor.com or call (800) 322-9738.

Taycor Financial Looks at the Glass Half-Full This Month

This week the Equipment Leasing and Financing Association (ELFA) and its non-profit affiliate, the Equipment Leasing and Financing Foundation released their results from surveys taken for the month of March.

ELFA reports economic activity including New Business Volume, Aging of Receivables, Net Investment at Risk, Average Losses, Credit Approval Ratios, and Total Number of Employees from 25 financial services and manufacturing companies, representing a cross section of the $725 billion equipment finance sector.

This past March, companies signed up for $6.8 billion in new loans, leases and lines of credit which is a 45 percent increase from February, however new business volume was flat compared to March 2012.

“The continued low interest rate environment promoted by the Federal Reserve together with relatively benign fundamentals in the broader economy bode well for businesses planning to expand and grow in the coming months and invest in capital equipment,” said William Sutton, ELFA Chief Executive.

While credit approvals increased 1 percent from February totaling to 78.4 percent, only 50 percent of participating organizations reported submitting more transactions for approval last month compared to the 53 percent in February. With the slight changes in the past few months, the April confidence index fell to 54 percent from the 58% last month reflecting industry participants’ concerns over the economy and the impact of federal policies on capital expenditure.

While some participants lose confidence, Taycor Financial remains optimistic for the upcoming months. With the passing of tax season the company understands the minor lull in business volume, however Taycor’s partnership with www.equipmentleasing.org and its member network raise high hopes for generating new business.

The combination of the strong development of Taycor’s Customer Finance Center and the continued low interest rates resulting in greater numbers of credit approvals brings a steady confidence in the equipment leasing and finance industry. While the Equipment Leasing and Finance Association’s index reflects Taycor’s recent business volume, the company remains optimistic for April and the months to follow.

About Taycor Financial

Founded in 1997, with offices in Los Angeles CA and Boston MA, Taycor Financial has joined the ranks of America’s top businesses, establishing itself as one of the premier equipment financing companies in the U.S. Taycor is also one of the most rapidly growing; having made the “Inc. 500” list of America’s fastest growing private companies. For more information on equipment leasing or financing, to get an Instant Quote, or explore career opportunities visit www.Taycor.com or call (800) 322-9738.

Trends in the Equipment Leasing and Finance Industry Support Growth at Taycor Financial

Trends in the Equipment Leasing and Finance Industry Support Growth at Taycor Financial

Los Angeles, California – October 30, 2012 (Press Release) The Equipment Leasing and Finance Association (ELFA) produces a Monthly Leasing and Finance Index (MLFI-25), which reports on equipment finance activity such as New Business Volume, Aging of Receivables, Net Investment at Risk, Average Losses, Credit Approval Ratios, and Total Number of Employees. The ELFA represents companies included in the finance sector such as financial services companies and manufacturing companies involved in financing capital goods.

This past September, the MLFI-25 indicated that overall new business volume was $8.2 billion—up 16 percent from a year ago. In addition, volume increased by 19 percent since August. The ELFA’s Monthly Confidence Index for October reveals a steady confidence in the equipment leasing and finance industry, despite the current economic, political, and regulatory concerns.

William Stephenson, Global Chief Commercial Officer of De Lage Landen noted that “Double digit improvement in several index categories is certainly a good sign for our industry.” In addition, “the improvement trend in these fundamental industry metrics reflects a relatively stable but cautionary outlook for the future.”

Taycor has discovered that there is indeed a steady confidence in the equipment leasing and finance industry, as indicated by their customer surveys. After talking to Taycor’s customer base and vendor partners, VP of Sales Drew Olynick found that in support of the ELFA’s claims, “more and more customers are rushing to lease or finance equipment before the year comes to an end.” If this behavior continues, Drew predicts that “new business volume will continue to see a steady incline and the equipment leasing and finance industry’s revenues will rise.”

The Equipment Leasing and Finance Association’s research is directly correlated with Taycor’s recent business volume and illustrates improvement from 2011.

About Taycor Financial

Taycor Financial, a nationwide equipment leasing and financing company headquartered in Los Angeles, has built a reputation of innovation by proactively seeking out new approaches in value added partnership with equipment vendors in the medical, printing, packaging, industrial and manufacturing industries. Recent partnerships have allowed for the development of innovative tools and support throughout its entire member network. The recent partnership with www.equipmentleasing.org and its partners has grown, and will continue to develop the abilities of Taycor Financial.

 

Equipment Leasing and Finance Activity on the Upswing

Equipment Leasing and Finance Activity on the Upswing

Confidence measurements continue to climb into February as 32% of customer respondents believe that acquisition through equipment leasing and financing is inevitable in 2012. This is up nearly 20% from customer survey results conducted in the first quarter of 2011.

LOS ANGELES, CA (February 27, 2012) The increase in equipment leasing and financing activity from customer respondents about the months to come match with the steady reports of industry growth and a rise in business confidence levels.

With the continued positive outlook and participant optimism of the Equipment Leasing & Finance Foundation’s February 2012 Monthly Confidence Index (source), the once shaky foundation of business growth is starting to solidify. Industry leaders are expecting a strong growth trend throughout the remainder of 2012.

“Some of the factors that affected a stronger and earlier resurgence of capital equipment acquisitions include the still tumultuous European economy as well as the slow to recover construction and manufacturing industries,” says Bob Skibinski, CEO of Taycor Financial.

Traditionally construction and manufacturing sectors have comprised a large segment of the total volume funded in the equipment leasing and financing industry. However, in recent years they were amongst the hardest hit and most affected by the downturn in the economy.

“Both the construction and manufacturing verticals have historically had steady year over year growth in average transaction size as well as an overall need for growth. It was commonplace for many equipment leasing companies to entrench themselves in those two markets, but with recent hardships those companies that did not expand strategic alliances into other industry sectors are either gone or scrambling to play catch up,” said Skibinski.

The customer survey results indicate the continued growth of the information technology and medical equipment sectors as the most active amongst positive responders.

Skibinski added: “Today, our portfolio is more diverse than ever. The learning opportunities as well as the security of a multi-industry alliance ensure our ability to advance the most innovative, and customer focused equipment leasing and financing programs to support the growth of all our partners.”

About Taycor Financial

Founded in 1997, with offices in Los Angeles CA and Boston MA, Taycor Financial has joined the ranks of America’s top businesses, establishing itself as one of the premier equipment financing companies in the U.S. Taycor is also one of the most rapidly growing; having made the “Inc. 500” list of America’s fastest growing private companies. For more information on equipment leasing or financing, to get an Instant Quote, or explore career opportunities visit www.Taycor.com or call (310) 568-9900.

Download: 02272012 Equipment Leasing and Finance Activity on the Upswing