2015 is off to a bang as customers from across the country continue to seek lease financing solutions for their equipment and commercial vehicle acquisition needs. What’s driving the demand? Equipment and vehicle replacement and expansion remains strong as the economy and business credit conditions continue to improve. Businesses are investing in equipment and vehicle fleets not only to replace aging assets, but to also aid in expansion. $922 billion of the investment in plant, equipment and software in the United States is expected to be financed through loans, leases and lines of credit. A majority of businesses—seven out of 10—will use at least one form of financing to acquire equipment. According to a recent report released by ELFA, the Equipment Leasing and Finance Association.
Some of our funding highlights for January include:
• 1.2m for new shop equipment for a large auto dealership.
• 630k for new and used vehicles for rental car companies.
• 40k for mobile equipment installed inside ambulances.
• 45k for Dell computers for a large property management firm in Baltimore
• 112k for fitness equipment for a gym in Florida
• 40k for ophthalmologic equipment for an eye doctor in California
• 49k for a Mercedes Benz for the principal of a growing IT business
As the price of oil continues to drop the overall economy should continue to improve which in turn will drive businesses to acquire more equipment and vehicles. Many will seek non-traditional financing sources, such as lease financing, as regulatory scrutiny increases and some banks’ lending standards tighten for certain credits. Madison Capital has strong relationships with banks and many refer their customers to us as we do not compete with their products.
Of course there are always unknowns that can negatively affect the economy; however, U.S. GDP is expected to grow due to expansion in housing and construction and lower oil prices.