Equipment lender confidence spikes despite economic pressures
26.1% of lenders expect increased demand over next four months
Equipment lender sentiment improved this month as industry tailwinds partially offset macroeconomic challenges.
The Equipment Leasing and Finance Association‘s (ELFA) Monthly Confidence Index reached 59.9 this month, up from 54.6 in April, according to a May 21 report, which comprised responses from roughly 30 lenders.
Roughly 27% of lenders expect business conditions to improve over the next four months, up from 11.8% in April. The percentage of lenders that expect increased demand over the next four months rose to 26.1% from 10.5% last month, but those that expect greater access to capital over that stretch decreased from 31.6% to 17.4%.
While rising energy prices, inflation and recessionary concerns could hinder CapEx spending, yields may increase as “conservative lenders pull back from lending, leaving less competition for remaining required capex spending,” Jeffry Elliott, chief executive of Elevex Capital, stated in the release.
“Some business models will thrive in this type of economy; equipment finance is one that can operate quiet well,” he said.
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