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.