In March, U.S. companies borrowed 7% less to finance equipment investments compared to a year ago, according to the Equipment Leasing and Finance Association (ELFA). However, despite this decrease, companies signed up for new loans, leases, and lines of credit worth $9.3 billion, which was an increase of 18% sequentially. ELFA President and CEO Leigh Lytle noted that they expect equipment and software investment to pick up later in the year when the Federal Reserve is anticipated to start cutting rates.
In January, credit approvals for U.S. companies were at 77%, up from 76% in the previous month. The organization’s leasing and finance index is based on a survey of 25 members, including companies like Bank of America, Caterpillar, Dell Technologies, Siemens AG, Canon Inc., and Volvo AB.
Additionally, the Equipment Leasing & Finance Foundation, ELFA’s non-profit affiliate, announced that its confidence index for April had dropped to 52.9 from 55.2 in March. A reading above 50 indicates a positive business outlook.
Overall, while there has been a decrease in borrowing for equipment investments in March compared to a year ago, the outlook for equipment financing in the U.S. remains somewhat positive with an expectation of an increase in investment later in the year.
The data provided by ELFA and its affiliates offer insights into the current state of the equipment finance sector and provide valuable information for businesses and investors looking to understand market trends and opportunities in the industry.
ELFA reported that credit approvals for U.S. companies in January were at 77%, up from 76% in the previous month. This shows that despite some fluctuations in borrowing rates for equipment investments earlier this year
