The Equipment Leasing and Finance Association (ELFA) is showing long-term trends are on the rise.
Last month’s report on equipment loans showed that the total dollar amount for this variety of lending was up 20 percent in April from the 2011 total in that same month, even if the amount in 2012 was down slightly from March’s total of $6.8 billion. At the same time, ELFA said small business loans in general are on the rise according to its index.
“We are also beginning to see requests for equipment relating to expansion and new contracts in the general manufacturing sector,” said Judson Snyder of BMO Harris Equipment in Milwaukee, Wisconsin.
These loans will help small businesses in a variety of sectors like farming and agriculture prepare for upcoming storm seasons and make repairs from last year’s round of disasters, according to the Victoria Advocate. What’s more, equipment loans can help metropolitan businesses improve existing infrastructure and increase productivity. If you’re in the market for an equipment loan to get more advanced machinery or bolster existing assets, an online marketplace like Boefly can get you in touch with lenders looking to get the right tools in your hands.
“The quality of applications is stronger,” said ELFA chief executive William Sutton in a Reuters interview. “There’s nothing that indicates excessive risk-taking.”
The ELFA report showed credit declinations are down from March to April, indicating a strengthening market and confidence from the business sector in requesting funds. As time passes and equipment loans continue to benefit small businesses, especially with market indicators showing the economy recovering and optimism on the rise, companies may find more need for enhanced technology and other equipment to stay competitive.