Equipment finance confidence drops amid interest rate concerns
18% of lenders expect increased demand over next 4 months
Equipment lender sentiment dipped in October, even as origination growth remained strong.
The Equipment Leasing and Finance Association‘s (ELFA) Monthly Confidence Index fell to 60.4 in October from 62.4 in September, according to the trade group’s Oct. 15 report. The index has been trending down since June.
Some lenders expect the rising interest rate environment to “ignite more weakness in the credit markets,” Elevex Capital Chief Executive Jeffry Elliott stated in the report.
“We expect delinquency and charge-offs to increase in most markets,” he said.
Other lenders, meanwhile, are optimistic about credit quality and strong new business volume, which remains on pace for a record year, Wintrust Specialty Finance President and CEO David Normandin stated in the report.
“The industry and our customers continue to adapt to uncertainty and take advantage of the opportunities that it creates,” he said.
Of roughly 30 lenders surveyed by ELFA, 27.3% expect business conditions to improve over the next four months, up from 26.1% in September. Roughly 18% expect demand to improve over the next four months, down 31.8%, and 19% anticipate greater access to capital over that stretch, down from 27.3%.
Check out our exclusive industry data here.
Proud Member Of
Check Out Our Industry Event
